Arun Jaitley makes strong pitch for re-capitalizing World Bank

Indian Finance Minister Arun Jaitley, in perspective of the World Bank being capital-compelled, accentuated on the requirement for re-capitalizing the Bank so as to empower it to meet Sustainable Development Goals (SDGs) and twin objectives of taking out outrageous poverty by 2030 and boosting shared prosperity.

"Unfavorable global scenario has made the achievement of twin goals of the World Bank Group and the ambitious SDGs even more challenging. Achievement of these goals requires trillions of dollars of development financing. This makes the role of the World Bank group even more critical - both as a provider of finance and knowledge," Jaitley said. He was representing the Constituency of Bangladesh, Bhutan, India and Sri Lanka, at the 94th Meeting of the Development Committee (DC), the Ministerial-Level forum of the World Bank Group and IMF for inter-governmental consensus building on development issues.

The meeting concentrated on the 'Forward Look' exercise done by the World Bank and discussed the Dynamic Formula of Shareholding of member nations in the International Bank for Reconstruction and Development (IBRD), a part organization of the Bank.

"In view of the Bank being capital constrained today, there is a need to expand the role of not only IDA, but also IBRD and IFC to enlarge the lending programme of the Bank Group," he said.

The 'Forward Look Paper' has proposed yearly loaning of USD 40 billion for each annum by IBRD. It likewise proposes increasing of IFC's yearly speculation limit to double. This is fundamental in perspective of the expanding part which IFC needs to play in inclining up private division's abilities in developing nations.

"Increased financing measures need to be coupled with renewed efforts to find innovative solutions, active pursuance of knowledge sharing, coordinated responses with the private sector, other development partners and international organizations," Jaitley said.

On growth, the finance minister said: "Our constituency countries have displayed resilience and growth in this challenging environment where India is likely to grow at more than its last year's 7.6 per cent, Bangladesh at 6.3 per cent, Sri Lanka at about 5.3 per cent and Bhutan at 6.8 per cent."

He shared the appraisal that the Bank shouldn’t be only greater but be more coordinated, effective and less costly to work with.
(image: Indiatimes)