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African ministers seek more power in IMF and World Bank
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Ahead of the annual meetings of the International Monetary Fund/World Bank Group scheduled for September in Singapore, African ministers of finance and economy, under the aegis of the African Caucus, have agreed to seek a political solution in their struggle to assert their relevance by seeking more voting powers in the Bretton Wood Institutions
(BWIs).
The meeting was a pre-emptive move to stalemate the proposal by the World Bank/IMF who are seeking to reduce Africa’s quota in the BWI’s from 5.5 per cent to 2.2 per cent.
In a communiqué issued at the end of the recent African Caucus meeting in Maputo, Mozambique, they stressed the urgent need to put an end to “the erosion of our voice in international institutions such as the BWIs”, and to ask the President of the African Union to lobby for the increase of our basic votes.”
The Maputo meeting was convened to articulate an African position following the ongoing reforms in the World Bank and IMF. Although welcoming a declaration by the IMF Managing Director to increase African IMF Staff members from 6 to 8 per cent, the finance ministers believe it is important to insist that this percentage continues to grow, at all levels (middle, intermediate and senior). According to them, it is important to stand for the increase of basic votes, which is the remaining alternative to safeguard the interests of Africa in the Quota review process.
“Although we acknowledge that amending the Articles is a complex exercise, we must ensure that during the August 25th meeting, a decision will be made on the issue of basic votes to be adopted at the Singapore meeting, rather than postponing the matter to a second stage”, they said.
Nigeria’s Finance Minister, Mrs. Nenadi Usman, had earlier presented a spirited and passionate case for the intervention of African political leadership, through the African Union, so as to enhance the basic votes of African countries in the BWIs.
The Bretton Wood Institutions are the World Bank, IMF, International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA). Meanwhile, World Bank’s Vice- President in charge of Africa, Mr. Gobind Nankani, has said the decision by Nigeria to save proceeds accruing from the sale of excess crude at the international market was economically wise.
Speaking at the African Caucus meeting in Maputo, Mr. Nankani also pointed out that the escalating prices of oil pose major challenges for both oil exporting and non-oil-exporting countries in the continent.
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