G-24 demands greater say in Fund, Bank
WASHINGTON: Developing countries have demanded a change in the long-standing
tradition by which the heads of the IMF and the World Bank come from Europe
and US and insisted that candidates should be chosen from any part of the
world.
Finance ministers from the Group of 24, representing the developing
countries, in a statement here on Saturday sought establishment of a process
which is "transparent, involves the entire membership through executive
boards and allows selection of the best candidate from any part of the
world".
Describing the trade policies of industrial countries as "a major trade
barrier", the communique ahead of meetings here on Sunday and Monday of IMF
and the World Bank, asked the developed countries to lower export barriers
from developing countries to help sustain global trade and enhance poverty
reduction efforts,
Stating that while developing countries had liberalised their external
trade, chairman German Suarez said industrial countries continue to place
barriers in textiles and foodstuffs by subsidising local production where
developing countries have a comparative advantage.
Developing countries must become more active partners in the next round of
multilateral negotiations to obtain substantial benefits from full market
access and the reduction of trade barriers, the communique issued ahead of
meetings said.
The demand was supported by US treasury secretry Lawrence Summers, who made
a similar statement before the Group of Seven industrial ministers.
The G-24 noted that the debt initiative to help the highly indebted poor
countries shifted a disproportionate burden of the cost of the initiative to
other developing countries, including other poor nations.
It opposed proposals by a US Congressional commission to limit IMF credit by
shortening maturities and demanded that international codes, standards and
best practices be made voluntary until countries not ready to adopt them now
get technical assistance to acquire competence to implement them.
The ministers also demanded that policies which have implications for the
developing countries should be discussed and approved in the World Bank and
IMF and not in restricted membership institutions like the G-7.
They said the World Bank and IMF must continue to provide effective support
in the research on trade barriers to assist developing countries to increase
their capacity to identify and defend their interests.
The group supported the ongoing efforts by the international task force on
commodity risk management in developing countries, led by the World Bank, to
develop ways to hedge against severe fluctuations in commodity prices. (PTI)
For reprint rights: Times Syndication Service
|Disclaimer|
For comments and feedback send Email
© Bennett, Coleman & Co. Ltd. 2000.