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IMF-World Bank hold annual meeting

October 25, 2010 - WASHINGTON DC

World economic and financial leaders at the World Bank-International Monetary Fund meeting in October will continue seeking ways to create a more stable international money systems. A follow-up can be expected on the Bank's recent decision to support a US $5.1 billion increase in operating capital, the first general capital increase in more than 20 years, and to give the developing economies among the 186 nations that own the Bank a greater say in running WB antipoverty programs.

World economic and financial leaders at the World Bank-International Monetary Fund meeting in October will continue seeking ways to create a more stable international money systems. A follow-up can be expected on the Bank's recent decision to support a US $5.1 billion increase in operating capital, the first general capital increase in more than 20 years, and to give the developing economies among the 186 nations that own the Bank a greater say in running WB antipoverty programs. Under the changes, China will become the bank's third-largest shareholder, ahead of Germany, after the United States and Japan. Countries like Brazil, India, Indonesia and Vietnam will also have greater representation. Calling the IMF too Eurocentric, the United States recently began a campaign to cut the number of Western Europeans on the IMF board to make room for more representatives from developing countries. The IMF worries that fiscal deficits and public debt levels in many developed countries are so large that there is a risk of a sharp rise in interest rates. The IMF, set up to regulate the world's financial system, has urged advanced economies to define and clearly communicate medium-term fiscal consolidation strategies. While there is broad international consensus on the need to curb financial instability, current proposals face technical and political obstacles. The World Bank, made up of two unique development institutions owned by 186 member countries -- the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) -- provides financial and technical assistance to developing countries. The International Monetary Fund (IMF) is an organization of 186 countries that works to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth and reduce poverty. About 10,000 people attend IMF/WB meetings officially, and thousands more unofficially. The unofficial thousands usually include anti-globalization and anti-capitalism demonstrators. (UPDATED Sep 2010)

U.S. calls IMF too Eurocentric (Washington Post 23 Sep 2010)

EU/IMF want tougher Greek austerity for deal -union (Reuters 29 Apr 2010)

Emerging economies granted greater voice at World Bank (DWW/AFP 25 Apr 2010)

World Bank

IMF

Date written/update: 2010-10-25