Monday, April 26, 2010
World Bank gives more clout to a rising China
This article discusses how China's growing economy has resulted in lifting their voting power in the 186-nation lending organization. China is now above Western powers like Germany, France and Britain. Their voting stake rose from 2.78 percent to 4.42 percent. The U.S. stake remains the largest at 15.85 percent, effectively giving it veto power. Japan follows at 6.84 percent. China is doing very well and booming that the increase in their voting power also gives other nations with emerging economies more voice in how the bank operates and lends.
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2 comments:
I think its a signal that the international community has recognized that rising developing countries should have a greater say in how the funds are appropriated. I think its an important shift that is reflective of the current state of affairs.
Increasing the voting power of developing countries shows greater credibility to the World Bank in their attempt to increase the developing countries' power and say for what the funds are used for. It's great to see the World Bank try to promote globalization and this is in stark contrast to the IMF's behavior.
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