[stop-imf] URGENT NGO Sign-On by Friday - Stop US from Blocking World Bank governance reforms]

[Robert Weissman]

From: "Rick Rowden" <rickr@actionaidusa.org>
Dear NGO colleagues:

Please consider signing this urgent appeal to the US Treasury Department
to NOT block the incremental steps being proposed that would improve the
representation of developing countries on the World Bank=92s Board of
Executive Directors (Bretton Woods Project in the UK has received word
from one ED office that the US ED=92s office is seeking to block any
governance reforms).

On Monday, June 30, the World Bank board will be having an informal
discussion about whether or not to proceed with formally adopting these
governance reforms at the fall meetings.

Please send your organizational sign-ons to:RickR@actionaidusa.org by
this Friday afternoon!Sorry for the very short time-frame.Thanks very
much.

Please forward.

--Rick Rowden

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Mr. John B. Taylor

Under Secretary for International Affairs

US Department of Treasury

Washington, DC

June 27, 2002

cc: Ms. Carole Brookins, U.S. Executive Director, World Bank

Dear Mr. Taylor:

We wish to call on the United States to fully support popular reforms to
the governance structure of the World Bank during an informal discussion
of the Bank=92sBoard of Executive Directors to be held on Monday, June 30,
2003.

Specifically, we call on the United States to support the reallocation
of Board seats and votes to ensure that all member countries are able to
represent themselves fairly and that creditor and borrower countries
have an equal allocation of votes; that there be no more than 10
countries per constituency, and rotation of Board members among
different countries in the constituency; and that no one country should
have a veto on any decisions.

As an important first step, we call on the United States to endorse the
two proposed changes to the governance structure around which the World
Bank has acknowledged there currently exists a consensus:

=B7Raising the voting shares of developing countries, potentially to a
combined total of 44.3 per cent of IBRD votes (compared to 39% at
present).

=B7Adding an additional Executive Director for African countries.Currently
just two EDs represent 46 Sub-Saharan African countries between them.

On June 9, 2003 a World Bank paper[i] referred to these two reforms by
stating: =93political will does exist ? as reflected in the World Bank
Development Committee=92s communique and the statements of many Ministers=
=94
at the April 2003 Spring Meetings.These proposed changes have been
repeatedly demanded by World Bank critics and promised by ministers at
international summits.[ii]The effect of these proposed changes would
modestly increase the voice of developing countries, especially Africa,
in World Bank decision-making.

The general public, civil society groups, and World Bank staff have
expressed a desire for reforms of the World Bank governance structure
because:

=B7The 46 Sub-Saharan African countries have just 2 Executive Directors on
the Bank and Fund Boards to represent them all, while 8 countries have a
single Executive Director each.

=B7Rich country Executive Directors currently control over 60 per cent of
the votes at the World Bank and IMF.

=B7The positions of countries on particular issues and loans are not
disclosed, nor are the agenda and minutes of World Bank and IMF Board
meetings.

While the two proposed reforms around which a consensus exists do not
adequately address all of the problems with World Bank governance, we
believe they are an important step forward in improving the
institution.The undersigned US-based non-governmental organizations and
religious institutions respectfully urge you to fully support the
proposed changes for which a consensus exists on the World Bank board
and to not block these efforts to make the board more representative.

Thank you for your consideration.

Sincerely,

[i] Issues Note: Enhancing the Voice of Developing and Transition
Countries at the World Bank

[ii] Notably, the Financing for Development summit, Monterrey, Mexico,
March 2002

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