The World financial leaders will negotiate this week on how to give more voting rights in the World Bank to developing economies such as China. The talks are a prelude to a crucial battle for the International Monetary Fund, writes Reuters. World Bank President Robert Zoellick said in an interview with the agency that has plans for a capital increase of the international financial institution with 3.5 billion dollars, which will be the first of more than 20 years. The funds will come from rich countries and developing countries like China. This will help the World Bank to restore its capacity after large loans granted during the standoff. Discuss and question the change of the voting rights in the bank, which will generate additional $ 1 billion in fresh capital, which is quite a complex political issue because it means some countries, particularly in Europe, partly to give up rights their vote. Britain, one of the biggest sponsors in the bank, probably will not take a position before leaving the results of parliamentary elections on 6 May. Scandinavian countries, which are usually generous in terms of aid to developing countries are now reluctant to give up their voting rights. At its meeting in Pittsburgh last year by leaders of the G-20 agreed to transfer 3% of total voting rights at the World Bank and at least 5 percent in the International Monetary Fund.
Read the full story