WASHINGTON: Seeking reforms in IMF and World Bank to reflect a larger say for economies like India, Finance Minister Arun Jaitley has said the share of developing and transition countries (DTCs) in the multi-lateral lending agencies IBRD and IFC must be raised to 50 per cent.
“I wish to reiterate that we must adhere to the Istanbul principles. We must accept that the time has come for raising partnership of DTCs in the IBRD and IFC to 50 per cent,” he said at World Bank Development Committee meeting here.
This, he said, would require that economic weight captured by GDP must remain the primary factor in the formula, with larger share of PPP based GDP of not less than 60 per cent.
The World Bank through its arm International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) provides loans to middle income and poorest countries. Also through its arm the International Finance Corporation (IFC), it provides loans, equity as well as advisory services to private sector and governments of developing countries.
“IDA has enormously useful role in financing development in low income countries, but recognising IDA contributions in IBRD/IFC share capital has adverse impact on voting share of developing countries. Therefore, it would only be fair if a weight of not more than 10 per cent is given to IDA contributions in the dynamic formula,” he said.(Agencies)
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