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Make World Bank...

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India today called for making the World Bank a more "responsive, credible and relevant" organisation noting that the world body should reflect the "changing dynamism of global economy and the evolving weights of developing economies".

"The goal is to make the Bank a more responsive, credible and relevant organisation so that it continues to play a vital developmental role in global economic affairs," Ashok Chawla, Secretary Department of Economic Affairs, said during the Spring Meetings of the IMF and the World Bank.

Representing the voice of emerging markets and the third world, India has argued the need to make both the IMF and World Bank more representative reflecting the ground realities of the 21st century.

The changing dynamism of the global economy and the evolving weights of developing economies need to be reflected in the governance structure of the World Bank, Chawla argued.

"This is also necessary if they have to see a role for the Bank in addressing new challenges emerging across the globe, be they climate change, energy or food," he said.

"Today, a significant portion of incremental global economic growth is being contributed by developing countries who have the potential to be important drivers of future global economic growth. This fact needs to be recognized in the structure of the World Bank," he said.

As discussions have begun to allocate more shares to the emerging markets like India, Chawla said the realignment of shares should be based on a formula or criteria that are "specific to the mandate of the Bank and should lead to a substantial enhancement of the voice of Developing and Transition Countries (DTCs)". He said that GDP of a country should be the best judge in this regard.

"This is best captured by GDP- PPP which is simple, real and easily understandable. Therefore, this should be the primary criterion for realignment. The Bank uses GDP-PPP data rather than GDP at market exchange rates for determining poverty levels and the IMF too has introduced this as a relevant variable in its quota formula," he said.

Cautioning the World Bank to draw any parallelism with the IMF needs to be given up in view of the completely different mandates of the two institutions, he said: "while identifying new criteria for a realignment framework, relative weight in the world economy should be given primacy."

(PTI)