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Enhancing the voice and participation of developing countries and economies in transition in the Bretton Woods institutions, March 2004
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Communiquй
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Governors of the Bretton Woods Institutions met on March 12, 2004, in Johannesburg, upon the invitation of H. E. Jean Baptiste Compaorй, Minister of Finance and Budget of Burkina Faso and Chairman of the African Caucus, and hosted by H.E. Trevor Manuel, Minister of Finance of South Africa and Chairman of the Development Committee of the Bretton Woods Institutions (BWIs). The purpose of the meeting was to develop inputs into a roadmap to be prepared by the Chairman of the Development Committee on the issue of voice and participation of developing and economies in transition in the BWIs. In this regard, Governors examined the modalities of strengthening the voice and representation of African countries in the two Institutions. The meeting was opened by H.E. Thabo Mbeki, President of the Republic of South Africa and was attended by representatives of 37 countries.
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Governors focused their discussions on structural and policy issues and the strategies needed to enhance and reinforce the voice and participation of the developing countries, notably the African countries, in the decision- making processes in these institutions, while noting the measures already taken on capacity enhancement by the BWIs.
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Governors underscored the importance of developing a strategy at the highest political level, to ensure Africa's greater participation in decision-making in the BWIs. To that end, the strategy should include the collaboration of African Union with other developing regions, to ensure that the governance reforms envisaged are accelerated, to make the BWIs more representative and equitable, to better serve the membership.
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They noted that the issue of voice and representation in both institutions is, under current rules, inextricably linked with the issue of quota and capital shares. Therefore, Governors called for an immediate review of quota formulae, including the introduction of new elements to improve and safeguard Africa's voting power.
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Governors regretted that over time, basic votes have declined significantly from the original level of around 11% to about 2% of total votes. This has resulted in diminishing the voting strength of developing countries in these institutions. Accordingly, Governors recommended the restoration of these votes to at least their original level of total votes.
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Governors noted the need to improve Africa's voting power in the International Development Association (IDA). To that end, they committed to make necessary arrangements to pay in full their countries' allocated shares by end-March 2005.
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Governors expressed strong interest in the success of IDA replenishments. They noted that the decision to include the borrower representatives at the IDA Deputies' meetings, with a consultative voice, is a move in the right direction. However, Governors called for a more formal role for borrower representatives. They also called for a clarification of the respective roles of IDA Deputies and Executive Boards of the World Bank, in terms of policy making and other requirements related to the use of IDA funds. They instructed their Executive Directors to follow up this issue accordingly.
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Governors noted that the two Sub-Saharan African Executive Directors represent the largest constituencies on the respective Boards of the BWIs. Therefore, they recommended an increase of the number of chairs representing Sub-Saharan Africa.
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Governors called upon the Bank and the Fund to make tangible progress on measures aimed at strengthening governance within the two institutions. They urged that the process for the selection of the heads of these institutions should be transparent and open and should take into account the views of all regions. Governors also called for additional high level African staff at the top management level of the Fund. An African Deputy Managing Director should be considered.
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Governors requested the Chairman of the Caucus to transmit their recommendations to H. E. Thabo Mbeki with a view to consulting with his peers in order to mobilize support for enhancing the voice and participation of developing countries.
Finally, Governors thanked H.E. Thabo Mbeki, President of the Republic of South Africa, for his participation in this meeting, as well as the peoples and government of South Africa for their hospitality.
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