World Bank President Robert Zoellick also told Reuters in an interview that plans were coming together for a $3.5 billion capital increase at the institution — its first in more than 20 years — with funds coming from rich countries and newly emerging powers.
That would help the World Bank restore its firepower after lending heavily during the financial crisis to help developing countries cope with the plunge in global demand and steep decline in private capital flows.
Shifting voting power in the Bank, which would generate a further $1 billion in new capital, is politically thorny because it means countries especially in Europe have to give up some of their voting power to developing countries.
Britain, one of the Bank’s largest contributors, is in the midst of a national election and there are concerns it may not be able to take a position until after the ballot on May 6.
Even Nordic countries, traditionally generous with development aid, are reluctant to accept less voting power.
Leaders from the Group of 20 major developed and developing countries agreed at meetings in Pittsburgh last year to a 3 per cent shift in overall voting power in the World Bank and at least 5 per cent for the International Monetary Fund.
Emerging economies, which have pushed for a 6 per cent shift in voting power at the World Bank, expressed concern that even 3 per cent could be a tough sell.
“I don’t think we will manage more than 3,” one Brazilian official told Reuters.
The G20 pressed for an agreement on voting power at the World Bank at this week’s meeting to coincide with the larger capital increase for the institution, while the shift in power at the IMF will be decided early next year.
The World Bank and IMF said yesterday they expect to go ahead with the April 22-25 meetings of global finance chiefs despite air travel disruptions across Europe caused by volcanic ash.
