Washington, DC: India saw its say in the World Bank increasing a bit after member nations approved a shift in voting rights, while China’s voice in the agency grew louder than that of Germany, France and the UK.
Both India and China had till now enjoyed an identical 2.77% voting rights. While India’s voting power stands increased to 2.91%, that of China leaped to 4.42%—placing it third overall.
India is now the seventh largest member in terms of voting power. Ahead of it are the US with 15.85%, Japan (6.84%), China (4.42%), Germany (4%), France (3.75%) and the UK (3.75%).
Membership of the financial institution gives certain voting rights that are the same for all countries, but additional votes are granted depending on a country’s financial contributions to the organization.
Since 2008, emerging economies have overall gained 4.59% in voting rights.
“The change in voting power helps us better reflect the realities of a new multi-polar global economy where developing countries are now key global players,” said World Bank president Robert B. Zoellick.
The member nations also agreed to raise more funds for global aid at the annual spring meeting of the World Bank and the International Monetary Fund.
The change gives emerging nations more say in how the bank is run and how its funds are disbursed.
“This change in voting share, giving developing countries over 47%, is a significant step,” Zoellick told reporters here, adding that he hoped shareholders would review the approach in 2015.
Zoellick said this accord was all the more significant at a time when multilateral agreements between developed and developing countries have proved elusive.
This increase fulfils the development committee commitment in Istanbul in October to generate an increase of at least three percentage points in developing and transition countries’ voting power.