Presentation on theme: "Re-shaping the Role of Bretton Woods Institutions New Progress, New Trends, New Challenges, and New Directions By ZOU Jiayi World Bank Executive Director."— Presentation transcript:
Re-shaping the Role of Bretton Woods Institutions New Progress, New Trends, New Challenges, and New Directions By ZOU Jiayi World Bank Executive Director for China11
Overview Strengthening global economic governance is a logical and critical response to the development challenges in the context of far-reaching globalization. BWIs remains important pillars of the global economic governance in terms of global aid architecture and international financial architecture. Since Monterrey Conference, new progress achieved, new trend developing, new challenges emerging, calling for new directions of BWIs.
New Progress in BWIs Major Progress in World Bank Successful IDA15 Replenishment US$ 41.6 billion for IDA15 in total, representing 30% increase over IDA14 in USD 42% increase of donor pledges, the largest expansion in donor funding in IDA history 5 new donors including China,Egypt, reflecting the increasing support from developing countries
New Progress in BWIs Major Progress in World Bank New strategic themes under inclusive and sustainable globalization Help to overcome poverty and spur sustainable growth in the poorest countries, especially in Africa Address the special challenges of states coming out of conflict or seeking to avoid breakdown of the state; Develop a competitive menu of development solutions for middle income countries, involving customized services as well as finance; Play a more active role with regional and global public goods; Support advancing development and opportunity in the Arab World; Foster a knowledge and learning agenda across the World Bank Group
New Progress in BWIs Major Progress in IMF A package of reform on quota and voice To enhance the voice and representation of dynamic economies and low-income countries Whole package to be accomplished by the 2008 Bank-Fund annual meeting 4 countries got quota increase in the 2006 Singapore Resolution as the first step of the reform Review on quota formula as the second step is underway. Preliminary consensus on four major factors of the formula: GDP/Openness/Variability/Reserve Refocusing and modernizing the Fund Working on Funds program with comparative advantage Developing a sustainable income model Lower administrative costs
New Trends in Development Rapid economic growth in developing countries over recent years, leads to larger role of developing countries in global economy Unprecedented close international economic linkage brings about enhanced economic benefits and tensions in globalization Implies new demand and new challenges to global economic governance system
Challenges in General Need for an effective global resource transfer system to support achieving MDGs Need for a more stable, reliable, and predictable international monetary and financial environment for developing countries Need for sufficient supply of Global Public Goods Need for a balanced, effective global governance system to coordinate different interests of countries of different development stages and enhance common interests
Challenges At Current Stage Challenges in resource transfer: commitment to ODA as a whole is not increasing Challenges in international financial architecture Financial supervision: innovation V.S. stability Flaws in international monetary system posing extra external risks on developing countries Excessive global liquidity High inflationary pressure Dollar depreciatio High oil/food price Structure Adjustment of globalization Global imbalance and its correction Decoupling issue Developing and developed countries adjustment alike
Direction toward Future Implications to World Bank Stress on mobilizing development resources Innovations on financial products, business scope, operational modality, and development paradigm New-type development partnership with developing countries as facilitator of North-South, South-South and regional cooperation Bigger role as knowledge Bank, stay at the cutting-edge of development knowledge from both developed and developing countries Mainstreaming the Global Public Good issue Look into interactions between developed countries policies and developing countries policies
Direction toward Future Implications to the Fund Focus on systemic issues in global level rather than national level Look into financial innovations and global level regulation The role in promoting the consistency of the macro- economic policies of developed countries Promote the reform of international monetary system Role of SDRs
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