Riyadi Suparno, The Jakarta Post, Singapore
Shareholders approved governance reform for the International Monetary Fund (IMF) and the anticorruption strategy of the World Bank at the close of their annual meeting here Wednesday, but there were dissenting voices.
Most of the 184 member countries voted to endorse the proposal tabled by IMF Managing Director Rodrigo de Rato that would give an increase in voting power to four underrepresented developing countries -- China, South Korea, Mexico and Turkey. However, 23 developing countries, led by India, voted against the reform.
""This week's vote is not the end of our work on quotas, but the beginning of a process that will continue during the next year,"" de Rato said in closing remarks.
Developing countries like India considered the reform measures too timid, arguing they failed to address the core problem of imbalance in representation. Developed nations lauded them, with Gordon Brown of Britain terming it the biggest reform in the governance of the IMF for 60 years.
World Bank President Paul Wolfowitz also said the IMF reform gave fairer weight and voice to all member countries, noting it was not an easy venture to reform an international institution.
""Change in any multilateral institution is difficult. Rodrigo, you have accomplished it. I want to congratulate you,"" Wolfowitz said in his closing speech.
The bank itself received an endorsement from its board of governors for its governance and anticorruption strategy, although with some qualifiers. The governors want the bank to consult with recipient countries in implementing the strategy that would attack corruption on three fronts: project, country and global levels.
""Clearly, this is an immensely complex issue, so our strategy must engage as thoroughly as possible with our member countries and seek to understand their individual situations in as much detail as possible,"" Wolfowitz said in welcoming the board's recommendations.
The bank also gained approval from the board to transfer $800 million from its net income and surplus, as well as $150 million of the International Financial Corporation's retained earnings, to the International Development Association, which will then channel it to poor-income countries as concessionary loans.
The board also approved an additional $200 million of the surplus to cover emergency operations, such as in Lebanon.
The two Bretton Woods institutions also unanimously called for the resumption of the stalled trade talks under the World Trade Organization by the end of this year, so that developing countries would be able to benefit more from global trade.
""I hope this message goes out loud and clear to trade negotiators, to political leaders and to citizens,"" de Rato said.
Negotiations of the Doha Development Round were suspended indefinitely at the end of July because of the U.S. refusal to indicate any cut in farm subsidies.
U.S. Secretary of the Treasury Henry M. Paulson indicated here that his country was ready to revive the trade talks.
Paulson and other finance ministers of developed countries gathering here also agreed to pool a total of $5 billion a year in the aid-for-trade program. It will be used to help finance infrastructure and capacity of poor countries so that they could benefit more from trade liberalization.
