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World Bank reform to begin in April, says US Treasury secretary.

World Bank reform to begin in April, says US Treasury secretary.

The reform of world Bank (WB), which would better meet the financing needs of developing countries, would begin in April, the Secretary of the Treasury of USA, Janet Yellen.

“The first phase of implementation should start at the spring meetings of the World Bank and the International Monetary Fund (IMF) in April,” Yellen said during a speech at the Center for Strategic and International Studies (CSIS) in Washington, D.C.

This change was announced in October, in the midst of the annual meetings of the IMF and the World Bank, promoted by some member countries and particularly by the United States.

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“We are focused on the evolution of its vision, incentives, operating model and financial capacity”he added.

The reform would make it possible to transfer funds more effectively so that poor and developing countries face crises derived from inflation, debt or even climate change with better conditions.

Both the management of the WB and the Board of Governors -the decision-making body, representative of 189 member countries- “they are in a deep debate about the measures aimed at increasing the financial room for manoeuvre”, Yellen detailed.

“We are looking for a phased implementation of this development,” explained, where a first phase would include close coordination with India, a country “who has made the evolution of development banks a priority of his presidency of the G20″.

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The US Treasury secretary also called on the World Bank to “rapidly implement a second phase of work” and to launch additional reforms during the Bank and IMF annual meetings next October.

“We started with the World Bank. Then we plan to do it with the regional development banks”, Yellen anticipated.

Source: Gestion

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