Governments agree $86.2 billion boost to World Bank capital (Bretton Woods Project)

Governments agree $86.2 billion boost to World Bank capital

As predicted (see Update 70) shareholders agreed in April to a significant increase in the capital that guarantees the lending of the International Bank for Reconstruction and Development (IBRD, the World Bank's middle-income country lending arm). $58.4 billion was guaranteed through a general capital increase, given by all shareholders in proportion to their voting share at the Bank. However, only $3.5 billion will actually be sent to the Bank (known as 'paid-in capital'); the rest remains a commitment to pay should the Bank need the cash ('callable capital'). A further $27.8 billion capital (including $1.6 billion paid-in capital) was guaranteed through a selective capital increase, paid for by shareholder governments whose voting share increased through April's governance reforms (see article).

The International Finance Corporation (IFC, the World Bank's private sector arm) did not receive a general capital increase, but did gain a $200 million selective increase from governments whose shareholding increased because of voting reform (see article).

Analysis of World Bank voting reforms Governance remains illegitimate and outdated Briefing|Bretton Woods Project|30 April 2010|url
The World Bank will continue to be overwhelmingly dominated by rich countries, which stunts its legitimacy and limits its capacity to serve the interests of developing countries. read article...
Bank voting remains unbalanced Rich countries retain almost 60% voting power News|Bretton Woods Project|16 April 2010|update 70|url
Small shifts in voting power at the World Bank are expected to be formally agreed at April's spring meetings, leaving high-income countries holding almost 60 per cent of the vote, with further reform put off until 2015. Meanwhile the Bank is expected to receive a smaller capital increase than it sought, which could push lending back to pre-crisis levels. read article...