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World Bank meeting focuses on financial crisis and poorest countries
13 October 2008
The effects of the current financial crisis on the world's poorest people came under discussion this weekend during a major meeting of the World Bank.
Attracting representatives from over 180 countries, with International Development Secretary Douglas Alexander amongst those in attendance, the Washington DC meeting focussed on the role of the Bank in helping to protect the poor.
Rises in food and fuel prices, the tightening in credit and the global economic slowdown are beginning to impact upon people in developing countries. Under threat is recent progress that has seen more children in school, more mothers accessing healthcare and more families lifted out of poverty.
The Bank and the International Monetary Fund (IMF) have a key role to play in ensuring that these and other significant gains are not lost. Responding to this need for action, Bank shareholders:
- Called on all donors to meet their commitments on Overseas Development Assistance, despite the current economic difficulties
- Agreed that the Bank and IMF should work together to deploy the full range of their financial, analytical and technical assistance to help maintain economic growth and protect the most vulnerable groups
- Welcomed progress on an Energy for the Poor initiative that will help those most affected by high fuel prices and support access to cleaner energy in the longer term
- Agreed that the Bank should complete the strategic review of its capital, examining how best to use its resources.
Tackling climate change, giving poor countries a voice
At the meeting, the Bank also recognised the size of the challenge that climate change poses to the world's poorest people. The UK has consistently pressed for international financial institutions to respond ambitiously to this growing threat.
Agreement was reached on a Strategic Framework for Climate Change and Development that will integrate climate change and sustainability into the Bank’s business. The UK will work with the Bank to ensure that this plan is successfully put into action.
In an important first step towards giving developing countries a bigger voice at the World Bank, a package of reforms was also set out at the meeting.
These include:
- A more open, transparent, competitive and merit-based selection process for the World Bank President
- Increased voting power for developing countries
- Reforms in the decision-making structures of the organisation to make them more representative of the whole world
- An additional seat at the Board for Sub-Saharan African countries, increasing their number from two to three and enabling them to have a greater say in how the Bank is run.
The reform of international institutions like the World Bank has been identified by Prime Minister Gordon Brown as a priority for the UK.
Links
- Urgent action needed to tackle global financial crisis – Douglas Alexander Press release, 13 October 2008
- 2008 Annual Meetings of the International Monetary Fund & World Bank - Ministerial Statement - 12 October 2008
Development Committee Joint Summary Statement
- 12 October 2008