World Bank approves governance reforms for Africa

NAIROBI, Feb. 12 (Xinhua) -- The World Bank has approved a first phase of
reforms to increase the influence of developing countries within the World Bank
Group, including adding a seat for Sub-Saharan Africa to allow developing
countries a majority of seats on the Executive Board, and expanding voting and
capital shares.

A statement from the bank's office in Nairobi said on Thursday that these
reforms were initially agreed at the World Bank Group's Annual Meetings in
October 2008, ahead of the Spring 2009 target.

"Expanding the developing world's voice is central to delivering effective
aid and promoting shared prosperity and development within a 21st Century
economic reality," said World Bank Group President Robert B. Zoellick.

"Adding another seat for Africa, reaching developing country majority on
the Board, expanding developing country shares and laying the groundwork for
further reforms represent real change. I'm pleased our reform process is on
track. I encourage shareholders to take action now on governmental approvals of
the voting share changes, and to continue their efforts at further, more
ambitious, reforms."

With the Governors' approval, the amendment to the Bank's Articles of
Agreement to increase basic votes, which benefit smaller shareholders, now moves
to the 185 member countries for final approval.

In order to take effect the amendment must be approved by three-fifths of
member countries with 85 percent of votes.

According to the statement, this package of reforms include: creating an
additional Chair at the Board for Sub-Saharan Africa, which means that
developing countries can have the majority of seats on the Bank's Board,.

The reforms also included bringing the share of developing countries in
Bank voting power to 44 percent, aimed in particular at adding voice for the
low-income countries.

"As a second step, shareholders have agreed that the Bank should undertake
a comprehensive and intensive work program to realign bank shareholdings, moving
towards an equitable voting power between developed and developing countries,"
it said.

Such a work program, the statement said, would also include voice reforms
at the Bank's affiliated member organization, the International Finance
Corporation (IFC). Work on the second phase is already underway.

Participation of developing countries' nationals in the staff and
management of the World Bank plays an important role in the voice reform.

Already nearly two thirds of Bank staff and 42 percent of all Bank managers
are from developing countries. Since Zoellick became World Bank Group President,
seven of his nine senior appointments have been from developing countries.