World Bank Document

THE WORLD BANK GROUP 2010 A THE WORLD BANK GROUP Headquarters 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. Public Disclosure Authorized nnual Meetings of the Boards of Governors Telephone: (202) 473-1000 Facsimile: (202) 477-6391 Website: www.worldbank.org

THE WORLD BANK GROUP

SUMMARY PROCEEDINGS Public Disclosure Authorized 2010 Annual Meetings of the

Boards of Governors Public Disclosure Authorized 2010 Summary Proceedings

Washington D.C. Ocotober 8–10, 2010 Public Disclosure Authorized 7912_CH00_FM_pi-viii.pdf 3/18/11 10:22 AM Page i

THE WORLD BANK GROUP

2010 ANNUAL MEETINGS OF THE BOARDS OF GOVERNORS

SUMMARY PROCEEDINGS

Washington D.C. October 8–10, 2010 7912_CH00_FM_pi-viii.pdf 3/18/11 10:22 AM Page ii

THE WORLD BANK GROUP

Headquarters 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. Telephone: (202) 477-1234 Telex Nos: FTCC 82987 RCA248423 WUI64145 TRT197688 Facsimile: (202) 477-6391 Internet: http://www.worldbank.org

Cable Address World Bank: INTBAFRAD IFC: CORINTFIN IDA: INDEVAS MIGA: MIGAVEST 7912_CH00_FM_pi-viii.pdf 3/18/11 10:22 AM Page iii

INTRODUCTORY NOTE

The 2010 Annual Meetings of the Boards of Governors of the World Bank Group, which consists of the International Bank for Reconstruc- tion and Development (IBRD), International Finance Corporation (IFC), International Development Association (IDA), Multilateral Investment Guarantee Agency (MIGA) and International Centre for the Settlement of Investment Disputes (ICSID), held jointly with that of the International Monetary Fund, took place on October 8, 2010 in Washington D.C. The Honorable Olusegun O. Aganga, Governor of the Bank and the Fund for Nigeria served as the Chairman. The Summary Proceedings record, in alphabetical order by member countries, the texts of statements by Governors, the resolutions and reports adopted by the Boards of Governors of the World Bank Group. The texts of statements concerning the IMF are published separately by the Fund.

Jorge Familiar Vice President and Corporate Secretary THE WORLD BANK GROUP

Washington, D.C. March 2011

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CONTENTS

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Opening Address by the Chairman Olusegun Olutoyin Aganga Governor of the Bank and the Fund for Nigeria ...... 1

PowerPoint Presentation from Robert Zoellick President of the World Bank Group ...... 4

Report by Ahmed Bin Mohammed Al Khalifa Chairman of the Development Committee ...... 21

Statements by Governors and Alternate Governors ...... 23

Australia ...... 23 Malta ...... 92 Bangladesh ...... 25 Mongolia ...... 95 Belarus ...... 31 Myanmar ...... 96 Belgium ...... 33 Nepal ...... 98 *Belize ...... 36 Netherlands ...... 100 Bolivia ...... 41 New Zealand ...... 104 China ...... 44 *Palau ...... 107 Colombia ...... 46 Papua New Guinea ...... 110 Ecuador ...... 48 Philippines ...... 114 Fiji ...... 49 Poland ...... 115 *Finland ...... 56 *Sierra Leone ...... 118 France ...... 59 South Africa ...... 122 Germany ...... 63 Spain ...... 123 India ...... 64 Sri Lanka ...... 128 Indonesia ...... 66 Sudan ...... 130 Iran, Islamic Switzerland ...... 132 Republic of ...... 69 Thailand ...... 133 *Iraq ...... 71 Timor-Leste ...... 136 Ireland ...... 77 Tonga ...... 138 Jamaica ...... 81 Turkey ...... 141 Japan ...... 82 Ukraine ...... 143 Korea ...... 85 United Kingdom ...... 144 Lao, PDR ...... 88 United States ...... 147 Malaysia ...... 90

* Speaking on behalf of a group of countries.

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Documents of the Board of Governors ...... 150 Schedule of Meetings ...... 150 Provisions Relating to the Conduct of the Meetings . . . . . 151 Agendas ...... 152

Joint Procedures Committee ...... 153 Report II ...... 154 Report III ...... 156

MIGA Procedures Committee ...... 158 Report I ...... 159

Resolutions Adopted by the Board of Governors of the Bank between the 2009 and 2010 Annual Meetings ...... 161 No. 605 Membership of Tuvalu ...... 161 No. 606 Direct Remuneration of Executive Directors and their Alternates ...... 163 No. 607 2010 Regular Election of Executive Directors ...... 164 No. 608 Transfer from Surplus to Replenish the Trust Fund for Gaza and West Bank ...... 164 No. 609 Forthcoming Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund—Change of Dates to 2010 and 2011 Annual Meetings in Washington, D.C...... 165

Resolutions Adopted by the Board of Governors of the Bank at the 2010 Annual Meetings ...... 166 No. 610 Financial Statements, Accountants’ Report and Administrative Budget ...... 166 No. 611 Allocation of FY10 Net Income ...... 166

Resolution Adopted by the Board of Governors of IFC at the 2010 Annual Meetings ...... 167 No. 252 Financial Statements, Accountants’ Report, Administrative Budget and Designations of Retained Earnings ...... 167

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Resolutions Adopted by the Board of Governors of IDA between the 2009 and 2010 Annual Meetings ...... 168 No. 224 Amendment to Resolution No. 211— Additions to Resources: Financing the Multilateral Debt Relief Initiative ...... 168 No. 225 Membership of Tuvalu ...... 168

Resolution Adopted by the Board of Governors of IDA at the 2010 Annual Meetings ...... 171 No. 226 Financial Statements, Accountants’ Report and Administrative Budget ...... 171

Resolutions Adopted by the Council of Governors of MIGA between the 2009 and 2010 Annual Meetings ...... 172 No. 86 Modernizing MIGA’s Mandate: Amendments to MIGA’s Convention ...... 172 No. 87 2010 Regular Election of Directors ...... 175

Resolution Adopted by the Council of Governors of MIGA at the 2010 Annual Meetings ...... 176 No. 88 Financial Statements and the Report of the Independent Accountants ...... 176

Reports of the Executive Directors of the Bank ...... 177 Membership of Tuvalu ...... 177 Report of the Boards of Governors of the Bank and the Fund by the Joint Committee on the Remuneration of Executive Directors and their Alternates ...... 178 2010 Regular Election of Executive Directors ...... 183 Rules for the 2010 Regular Election of Executive Directors ...... 185 Statement of Results of 2010 Election of Executive Directors ...... 190 Transfer from Surplus to Replenish the Trust Fund for Gaza and West Bank ...... 197

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Forthcoming Annual Meetings of the Boards of Governors—Change of Dates for the 2010 and 2011 Annual Meetings ...... 199 Allocation of FY10 Net Income ...... 200

Report of the Board of Directors of IDA ...... 201 Amendment to Resolution No. 211—Additions to Resources: Financing the Multilateral Debt Relief Initiative ...... 201

Reports of the Board of Directors of MIGA ...... 203 Modernizing MIGA’s Mandate: Recommended Amendments to MIGA’s Convention ...... 203 2010 Regular Election of Directors ...... 208 Rules for the 2010 Regular Election of Directors ...... 211 Statement of Results of 2010 Election of the Board of Directors ...... 214

Accredited Members of Delegations at the 2010 Annual Meetings ...... 220

Accredited Members of Delegations (MIGA) at the 2010 Annual Meetings ...... 251

Observers at the 2010 Annual Meetings ...... 269

Executive Directors and Alternates, IBRD/IDA and Directors and Alternates of IFC ...... 274

Directors and Alternates, MIGA ...... 276

Officers of the Board of Governors and Joint Procedures Committee for 2010/2011 ...... 278

Officers of the MIGA Council of Governors and Procedures Committee for 2010/2011 ...... 279

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OPENING ADDRESS BY THE CHAIRMAN THE HONORABLE OLUSEGUN OLUTOYIN AGANGA GOVERNOR OF THE BANK AND THE FUND FOR NIGERIA

Welcome to the 64th plenary of the Boards of Governors of the International Monetary Fund and the World Bank Group. Back in early summer, I discussed wide-ranging reform ideas with the Fund, which is the lead agency for the preparation of the meetings this year, and with the Bank about modernizing the Annual Meetings. In just a few months, a full transformation of these Meet- ings has taken place, which had not changed in format for over half a century. We have a more focused and efficient plenary, we have a more attractive framework for Governors to deliver speeches, and we have an impressive Annual Meetings logo. I hope that in future years we can build on these far-reaching innovations and continue to take the Meetings forward. My fellow Governors, the global economic crisis has had a severe impact across the globe, exacerbating existing problems and creating new challenges. The international community must now develop a new global architecture that will reduce the chance of a recurrence, address negative spillovers more effectively, protect the vulnerable and lay the foundations for strong, sustainable, job-rich, and broad-based growth. When the membership of the Bretton Woods Institutions first came together in 1946, the global economy was vastly different. The challenges facing the world were more formidable than today. And the membership’s capacity to act was more limited. Nonetheless, we succeeded then; and, together, we can also succeed now. Through multilateral cooperation, the membership now provides an even stronger basis to tackle global challenges. Virtually every country and type of economy is a member, providing different perspectives, and allowing for greater collaboration. This capacity of the membership to act together, to act promptly, and to act decisively has supported the Institutions in providing unprecedented levels of assistance to members in need during the financial crisis, and in what has followed since. Members responded by strengthening the lending capacity of the IMF and the World Bank Group to support future financing of growth and to help countries better confront risks. And the Institutions have delivered. Since the crisis began, the Fund committed an unprecedented 223 billion US dollars to its members, including under precautionary arrangements, and disbursed 72 billion US dollars. In the same time frame, the World Bank Group committed 138 billion US dollars to its members, and disbursed a record 88 billion—including 22 billion to the world’s 79 poorest countries.

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Above all, this has been a human crisis. Vulnerable populations in middle-income and the poorest countries experienced setbacks that could stall progress toward achieving the Millennium Development Goals. Addressing poverty remains the main challenge for development. IDA is continuing to play an important and central role in helping the poorest members, providing up to 20% of official development assistance. Over the last 10 years, IDA has helped to save 13 million lives. It needs a robust replenishment, and the time to honor our commitment is now. Similarly, by increasing its concessional financial support during the crisis by 300 percent, in 2009, the Fund helped low- income countries maintain stability and preserve vital spending; it will be critical to ensure adequate funding of the PRGT to be prepared for future shocks. As we confront these challenges, we should draw encouragement from the flexibility and resourcefulness of developing and transition country members during the turbulence of recent years. Helping the global recovery, some members are emerging as new sources of global growth, including in Africa. It is possible that “Africa’s Lions”—like Nigeria with its 6% GDP growth last year and a robust GDP growth of 7.4% in the first half of this year—could rival Asia’s Tigers and the BRICs in the near future. In fact, this could be the defining decade for some emerging and developing economies. The Institutions can further support these members with financing, particularly in the areas of infrastructure, and knowledge as they develop as new growth centers. In turn, the Institutions can also learn more from these members’ experiences, for the benefit of the whole membership. To successfully confront the challenges of our time, it is necessary to adapt to the circumstances of our time. The Institutions are advancing a package of reforms and innovating to increase their effectiveness. This year, the Fund has refined the Flexible Credit Line to make quali- fication more predictable and to extend its duration, and created a New Precautionary Credit Line with more tailored conditionality. Fund surveillance is set to be enhanced by stronger spillover analyses, significantly strengthened by mandatory Financial Sector Assessment Programs for countries with systemically important financial sectors. The World Bank initiated investment lending reforms to focus financing more on results, and created a fast-disbursing loan. It began a pilot IDA Crisis Response Window, helping borrowers protect core spending needs during the crisis. The Food Facility is helping countries hit hard by continuing high food prices, and the Bank has scaled up its support to infrastructure, agriculture, and safety nets. The IFC’s Asset Management Corporation raised 950 million dollars from sovereign and pension funds in its first year. MIGA expanded its services in response to risks in a post-crisis world.

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Members made strides towards greater accountability of both Insti- tutions: of the Fund, by substantially building on its existing transparency policy through the improved timeliness of disclosing documents and information; and, of the World Bank Group, by introducing a new Access to Information policy, a landmark achievement that opens Bank research to the public and provides data and new software tools free of charge. Additionally, the two institutions continued with governance reforms to better reflect the diversity of their membership, and enhance their legitimacy and effectiveness. The World Bank Group added a third African chair, and agreed to a shift in voting power to developing and transition economies, giving them a 47% share. The ongoing General Quota Review at the Fund aims to build on the 2008 quota and voice reforms by shifting a further 5 percent of quotas to dynamic emerging markets and developing countries. I call on all members to promptly consent to the agreed reforms and work toward completing the review before January 2011. The way the membership came together to deal with the financial crisis and its continuing aftermath has demonstrated the value of joint action and forged even stronger collaboration. These Meetings provide a great opportunity to further harness the enhanced participation, diversity and cooperation of the membership as we confront the challenges of our time. We have succeeded in the past and together we can succeed again.

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PRESENTATION BY ROBERT B. ZOELLICK THE PRESIDENT OF THE WORLD BANK GROUP

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REPORT BY AHMED BIN MOHAMMED AL KHALIFA CHAIRMAN OF THE DEVELOPMENT COMMITTEE (entered into the record in accordance with Report III of the Joint Procedures Committee)

Two years after the onset of the global financial crisis, actions by developed and developing countries, with strong support from multilateral financial institutions, have helped head off a catastrophic economic downturn. Economic resilience among many developing countries, reflecting sound policies in the years prior to the crisis, has underpinned the effectiveness of the global response, and is now contributing to the nascent global recovery. Many developing countries have done well in maintaining growth and output and preserving core spending on health, education and infrastructure. Protecting vulnerable groups has proved a bigger challenge—especially in low-income countries—partly because of fiscal constraints and difficulties in scaling up effective social protection mechanisms. Until 2008, developing countries had made significant, if uneven, progress to achieve the Millennium Development Goals (MDGs). The food, fuel and financial crises, however, have taken a heavy toll. We commit to intensify our efforts to achieve the MDGs by 2015, with a stronger focus on results. We welcome the role played by the multilateral financial institutions in supporting countries’ own responses to the crises. We note the exceptionally high levels of commitments and disbursements by the World Bank Group (WBG) and the International Monetary Fund (IMF) since the onset of the financial crisis. We call on the WBG and the IMF to continue identifying policies and instruments that could best assist in preventing and responding to future crises, reduce the risks to growth and increase prospects for a sustainable recovery. The International Development Association (IDA) is one of the world’s most important instruments for achieving the MDGs and improving the lives of millions of people. IDA contributes unique strengths to development policy and financing, which underlie its strong track record of delivering development results. In this context, we welcome the continued efforts to improve IDA’s results measurement. We call for a strong sixteenth IDA replenishment, with fair and broader burden sharing among all donors and the WBG. We stress the importance of the revival of world trade and investment in underpinning global economic recovery and growth.

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Therefore, we urge members to avoid all forms of protectionist measures. Developing economies will play an increasing role in global growth and trade. We reiterate our support for the WBG’s continuous efforts in infrastructure, innovation and human capital investment. We would like to emphasize our support for further strengthening and mainstreaming of the WBG’s work on gender. We also recognize the WBG’s work in the area of climate change, including Climate Invest- ment Funds. We encourage further collaboration with the United Nations Framework Convention on Climate Change. Food security and nutrition will remain vital concerns for many developing countries. We look forward to strengthened efforts by the WBG, in coordination with other international institutions, to address issues of agricultural productivity, food security and challenges posed by agricultural commodity price volatility. We encourage the continued implementation of the Post Crisis Directions framework that provides the WBG with strategic guidance to help the institution prioritize, make trade-offs and maximize its development impact. We acknowledge the work underway on results, including a corporate scorecard, on knowledge sharing and learning, and on decentralization. We expect the Board to monitor and report on all the agreed reforms to ensure their timely and effective implementation. We commend the WBG on opening access to data, tools and information. We welcome the continued efforts of the International Finance Corporation to contribute to stronger private sector development, including in IDA countries, and its efforts to mobilize additional resources, such as through the Asset Manage- ment Company. We welcome the third Sub-Saharan Africa Chair at the WBG. We stress the importance of timely implementation of the remaining proposals on voice reform and on strengthening the WBG’s financial capacity that we endorsed last spring. We note the progress made on the governance and accountability of the WBG, and look forward to proposals from the Board, including work underway on presidential selection and dual performance, at our next meeting. We reiterate the importance of an open, merit-based and transparent process for the selection of the President of the WBG. We also reiterate the importance of promoting staff diversity to reflect better the global nature of the WBG. The Committee’s next meeting is scheduled for April 17, 2011 in Washington, DC.

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STATEMENTS BY GOVERNORS AND ALTERNATE GOVERNORS

AUSTRALIA: WAYNE SWAN Governor of the Bank and the Fund

It is my pleasure to deliver this statement on behalf of Australia for the 2010 IMF and World Bank Annual Meetings. These meetings come at an important time for the world economy. While we are starting to see global growth rebound from the crisis, this recovery remains patchy and is surrounded by uncertainty. Questions are being raised about the durability and strength of the economic upturn in some advanced economies, as the temporary support of policy stimulus and inventory rebuilding fade. It is for this reason that we need to continue harnessing the resolve that saw major countries act to defend their economies against the crisis. This resolve can be equally as effective in rebalancing and sustaining global growth, and putting in place necessary reforms. All countries should establish policies to sustain global output and employment. In order to help rebalance global growth, it is important that major advanced economies commit to medium term fiscal consolidation plans that are credible and which do not exacerbate current weaknesses in demand. And at the same time many emerging markets need to reorient their growth away from over reliance on exports and lift their domestic demand. We must all deliver on the financial and structural reforms that will underpin stronger and more sustainable global growth into the future. And the international community must continue to work towards further trade liberalization, which will support growth right across the world. I am proud to say that Australia has emerged from the global recession in a strong position. Three decades of structural reform, a strong and stable financial system and well-timed and well-targeted policy stimulus provided crucial support for the Australian economy. Aus- tralia was one of only two advanced economies to avoid a technical recession. Our economy is now growing strongly, unemployment is low, and our public finances are strong. Importantly, the transition from public to private sector demand is underway and we’re seeing a broad- ening in the drivers of growth. Private consumption is gaining pace, despite continued caution amongst households, and there is a strong pipeline of private business investment that is about to get underway.

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At the same time, the strength of the Asian region continues to generate strong demand for Australia’s commodities. But there is no time for complacency. We—Australia and others—need to build on our successful defense against the crisis to secure our future economic prospects. In committing to stimulus to support the economy, the Aus- tralian Government also committed to a clear strategy to return the budget to surplus as rapidly as economic circumstances allowed. This is notwithstanding our already low levels of public debt. We are engaging in a major fiscal consolidation task that will restore the budget to surplus by 2012–13, comfortably ahead of all major advanced economies. The Australian Government is also building Aus- tralia’s productive capacity through investments in skills and infrastructure and boosting private retirement savings. And we have announced a tax reform package that will make Australia’s tax system fairer and more efficient to help build a stronger and broader economy in the years ahead. But we live in an integrated global economy which faces many challenges. Linked to this, Australia recognizes the importance of having effective, efficient and credible International Financial Institutions. The IMF and World Bank played a significant role throughout the crisis and it is important to recognize this, including the leadership shown by Man- aging Director Strauss-Kahn and President Zoellick. The Bank provided an impressive increase in lending to support the needs of Middle Income and IDA Countries. And it has begun a broader reform process— refreshing financial tools and reforming their service delivery model. Importantly, the Bank and the International Finance Corporation have agreed on a package of reforms which will enhance the ‘voice’ of developing countries. This is essential to increasing their legitimacy. Australia recognizes the importance of ensuring that these institutions are appropriately resourced. We were strong supporters of the US$86.2 billion capital increase for the International Bank for Reconstruction and Development. In line with G20 Leaders’ commitments, Australia made a A$30 million grant to the IMF’s Poverty Reduction Growth Trust to support concessional financing to low income countries. And we passed legislation in June allowing us to join with other countries to increase our credit line under the expanded New Arrangements to Borrow. We also welcome the moves to strengthen the IMF’s precautionary lending capacity through the enhanced Flexible Credit Line and the new Precau- tionary Credit Line. Together with an enhanced surveillance tool kit, this will help limit the spread of any future financial contagion. But we also understand that the most effective financial safety net continues to be sound domestic economic management and financial regulation—tailored so that they are appropriate for domestic conditions. Much has been achieved but more needs to be done.

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The IMF and World Bank demonstrated flexibility, responsiveness and greater engagement with their members in responding to the crisis. But it is essential that these attributes are not only maintained, but also extended so they can meet any global challenges that lie ahead. We must continue to review the role and mandate of the International Financial Institutions to ensure that their activities and lending instruments are responsive to the needs of members. And in particular, it is vital that the international community delivers its commitments on IMF quota and governance reform. Australia has long been a strong advocate of reforming arrangements at the IMF to reflect developments in the world economy. We need to ensure that dynamic emerging markets and developing economies are fairly represented. The deadline to complete these reforms is just around the corner and the time has come for political decision-making if we are to honor our commitments. Short-term self interest must be put aside in favor of the long-term common global good of achieving an efficient, credible and legitimate IMF. Australia will continue to do its part to ensure that these reforms are completed so that we can face our economic future with confidence.

BANGLADESH: ABUL MAAL A. MUHITH Governor of the Bank and the Fund

In the Istanbul meeting last year I shared my thoughts about the Bank-Fund’s continued struggle with infrastructure development, eradication of poverty, environment and limits to growth, structural adjustment, private sector development, and development administration and governance issues that have been occupying the centre stage of development dialogue for the last half a century. I devoted some of my time on a new architecture for global financial and monetary system predi- cated by the crisis of 2007 that is yet to be fully overcome. This Bank- Fund annual meeting is following a new format that does not appeal to an observer of fifty years, who participated in it 41 years ago for the first time. The attraction of the occasion was the grand gathering of the financial world that is missing now. In addition to the official programme there used to be exchange of ideas and building of contacts in the financial world and useful bilateral discussions between official delegations. I would suggest that we reconsider the old format of a week- long gathering and explore avenues of overcoming budget constraint. To a lay person the central role of the World Bank appears to be to address the global development challenges and ease financial intermediation on a global scale and that of IMF to be to facilitate trade, international payments and surveillance of macro-fundamentals of member countries. The unfolding events of last three years focus attention on

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the Bretton Woods institutions in some new light. The London Confer- ence held in 1929 to stave off the Great Depression ended in utter failure. But eighty years later a similar Conference of G-20 countries held in London in April 2009 tells a different story. This time they emphasized collaboration and coordination and the public sector both in the domestic and the international arena attempted successfully to tide over a similar but more widespread and deeper crisis. They provided both resources and direction to national economies as well as to IMF and World Bank. Many developing countries, including Bangladesh, entered the new age of the global turbulence after years of macro-economic stability and faced an acute development crisis. Their hard-earned gains in poverty reduction and achieving targets of MDGs have been substantially impeded by the food and fuel price hikes followed by the global financial crisis. The investment environment is still to pick up, trade is slowly coming out of negative growth syndrome and decline in external demand is still there. These shocks, mainly external to the low income countries, have, however, caused them loss of revenue, increase in unemployment and slow-down in investments in education, health and infrastructure. On top of it these countries are confronting the challenge of climate change, where technology innovation is even more important than massive investment. The big question is how we are going to face the complexity of such a difficult future. In the face of many global challenges, the winds of change in the post-War public institutions are perceptible. It is very obvious in the United Nations, but let me leave out that story now. The IMF quickly overhauled its lending instruments and upgraded the support for LICs to tackle increased vulnerabilities arising out of the global economic crises. The creation of its new Poverty Reduction Growth Trust and its three windows of credit facilities has become operational from January this year. These flexible facilities are likely to be of great help to countries with balance payment problem as well as others needing budget support. The benefit of issuance of new SDRs topping up the reserves is already offering leeway to the beneficiary countries and arrangement of zero interest credit facilities through 2011 would greatly benefit the affected countries as short-term relief. There is no disagreement that the surveillance function of the IMF should be strengthened and made symmetrical and early warning capacity should be enhanced. There is also some thought on better regulation of the financial sector and a more coordinated approach here between the public and the private sectors. It looks to me that we are skirting the issue of currency volatility that should be attended at an appropriate time. In devising innovative financing for implementation of MDGs a global tax on currency transactions has been suggested and this possibly deserves serious consideration.

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I commend the World Bank in its leadership in administering the Global Climate Investment Fund (CIF) and the Global Agriculture and Food Security Programme (GAFSP). These two initiatives are timely and important. In passing I would congratulate the Bank for its very useful and informative report on climate change issue in the current WDR. The Bank, however, is seen to be slow in responding to many challenges. Its counter-cyclical measures and the Crisis Response Window lending made available to the poor countries besides being rather narrow in scope were slow in disbursement. IBRD’s scaled-up resources for the emerging countries have not been matched by provisioning of additional IDA resources for LICs. The Bank limited its operation of crisis management to front-loading the regular resources. I reiterate the demand for a discrete fund outside of country IDA allocation for the LICs to provide fast disbursing budget support. Experience suggests that the Regional Development Banks (RDBs) have better understanding of local problems and their focus on timely intervention is more helpful. Aid funds are most appreciated when conditionalities and triggers are minimal, response time is shorter and disbursement is quicker. The Bank should think about modalities to fulfill these expectations. I should take the opportunity here to express our grave concern about the prospect for the 16th replenishment of IDA resources, mainly because many of our development activities in education, healthcare, transport, energy and such crucial sectors are primarily financed by IDA resources. Despite substantial reflow of resources in terms of debt repayment from the IDA borrowers, its replenishment beyond the first two decades has not grown in real terms. A ges- ture of real humanity in the face of current resource squeeze calls for the replenishment to grow at least by one-third to a minimum level of $52 billion and participation of more contributing countries. For quite a while now the issue of aid effectiveness represents a strong commitment of both the development partners and the recipient countries. The resolve of Paris Declaration and the Accra Agenda for Action must be followed both in letter and spirit by the agreeing parties. Donor harmonization and true alignment of aid policy with the country system under a mutual accountability framework must be achieved. Loans and credits should be available based on a “minimum convergence criteria” and eligibility framework and should not have restrictive strings and triggers. Procurement of goods and services should coast around country requirements while ensuring strict adherence to internationally accepted good practice. We are happy to report that the Bank’s CAS for Bangladesh has been developed with our full collaboration and we have even been able to sign a Joint Cooperation Strategy with eighteen members of the Development Forum recently. Over the last couple of decades there has been a dramatic shift in not only the global economic power but also in its definition and

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accounting. Pressures have been mounting for a rebalancing of the voice and quota in the Bank, Fund and other IFIs more adequately reflecting the dynamics of global economic power. We are fully supportive of the current quota and voice reforms both at the Fund and the Bank. Resistance to reform would only impair the credibility, legitimacy and effectiveness of the IFIs. Economic weightage of countries should be measured on the basis of PPP GNI criteria and simultaneously modernization of national account statistics and updating system of PPP should be emphasized. By the by, I reiterate my country’s support to the General Capital Increase of the IBRD for its expanded operation. At the same time I underscore the need for a special IDA replenishment to help LICs tackle the effects of global crises and climate change, which were triggered and caused by the actions of the developed world. Just a few days ago, there was the United Nations Summit on Millen- nium Development Goals. Generally it was noted that a large number of countries are on track in achieving the MDGs during the next 5 years. But in respect of some goals, some countries not only are not on track but also have regressed to some extent. Generally, the trade and investment climate has not been very hospitable. Commitments made have not been fulfilled by the development partners, not to speak of 0.7% of GNI as development aid even the 0.2% target for the Least Developed Countries has also not been fulfilled. Of course, I must admit that there has been good provision of resources for the debt initiative. The global system seems to be punishing countries who have managed their economies and their policies in a prudent and healthy manner. Those who have well- managed balance of payment deficits and avoided debt crises; and on the contrary emphasized domestic resource mobilization as well as domestic demand acceleration have not been treated well by the financial system. They are depending on resources which are expensive, which are not easy for them to access and which are available for short-term in the commercial market. This is undoubtedly a failure of the global financial system and we have to find some way to rectify the situation. In a few months time we shall have the fourth LLDC conference in Istanbul for which preparations are now in high gear. The review of the implementation of the Brussels Plan of Action has also brought out the fact of mismatch between commitment and performance. I notice limited interest in this event by the Bretton-Woods twins. The reality of the hard struggle for survival in the LLDCs must be given high priority in deciding as to what to do with the international public sector and how to restructure it. Mere modification of voice and participation in Bank-Fund group or opening of new windows of financing in these institutions may not be enough.

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So far I have refrained from talking much about the situation in my country except citing it as typical example now and then. The Govern- ment I work for came to office a year and nine months ago with a very popular mandate. The Honorable Prime Minister has targeted graduation from the current status of the country as a least developed one into a middle income country by 2021, when the country will celebrate its golden jubilee. We are counting on domestic resource mobilization in a big way and expanding Private Public Participation not only in infrastructure projects (power, transport & communication) but also in health, education and housing. Our Government is working hard for transparency and openness in government functions, notably in budget preparation and implementation. We are depending very elaborately on consultation and consensus on national issues. The economy has withstood the onslaught of the global financial crisis by keeping up domestic demand, saving export sector from going under, undertaking special employment programmes, maintaining manpower export and flow of remittances, emphasizing agriculture and rural sector, and expanding social safety net and improving its targeting. We maintained an output growth rate of 5.7 percent in FY 2009 and 6 percent in FY 2010 and hope to do better in the current year. By and large we implemented our budget to the satisfaction of the nation for one and a half year and the current budget is also on target. Our Government has brought the subject of regional cooperation to the centre stage. We are emphasizing energy trade, joint river basin development and environmental cooperation while following the free trade schedule for the SAARC. Taking advantage of our location we are opening up our country for transit traffic between Indian states on our west to the north-eastern states of India. We are also developing links with Bhutan and Nepal through India and with Myanmar and through it to China, Thailand and South-east Asia. The country has also adopted the strategy to exploit the advantages of the information and communication technology and establish a digital Bangladesh by 2021. The progress in the ICT sector is phenomenal particularly for a country bogged down by the twin curses of huge concentration of poverty and widespread illiteracy. But the country really is one for impossible attainments, things happen in the country that are theoreti- cally unfeasible as per standard requirements. It is a country where demographic transition has begun, it is leading in women empower- ment, it has high density of mobile telecom, it is the model for micro- credit operations and it has set up an effective system of non-formal education. The nation received the MDG award for reducing infant mortality. The Government has been able to establish its credibility and arrest the slide in corruption and mal-governance. There are many

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impediments, the most important of which is an energy and power crisis. The poor condition of physical infrastructure and the dire impact of climate change are very serious, indeed. Malnutrition is widespread although immunization coverage is very high. The challenge is to accelerate investment and to improve the quality of manpower. The current global recovery, led by Asia, is expected to open up new windows of opportunity for countries. A country with a firm commitment to socioeconomic development endowed with some proven skills and competitive labor force is destined for new opportunities. Domestic demand acceleration has proved to be very crucial as an engine of future growth but export-led growth has not just withered away for all economies. Urbanization demands provision of modern services but rural habitations are also demanding municipal services. For different countries to move ahead what is needed is the indomitable human spirit and an enabling environment for its endeavour. This warrants a change in the global setting. Indications of such a change are recognized even in submissions by the Bank in the papers for the Development Committee. The recovery effort, for example, is detailed separately for various groups of countries as well for separate regions but in prescribing the way forward the separate findings are all mixed up. We have to find modus operandi to come out of this mindset and question the status quo. We have to confront the issues of migration and development—economic or environmental migration along with political migration—and labor mobility on a global scale. We have to consider market expansion in investment- starved countries despite the obstacles there for doing business without hassle, barriers of transit trade and lack of standard transport and communication facilities. We have to acknowledge that ICT can leapfrog many difficulties even if it means enclave development in a nation. The contribution of ICT to good governance and flourishing of creative energies are beyond imagination. Further, we must believe that climate change is a scourge and technology and resources are equally required to arrest this crisis. Many of the vulnerable or fragile or threatened economies like Bangladesh require a different kind of approach in development cooperation and mere facilitation of financial intermediation is not enough there. We have to try out special efforts in such countries. Public Pri- vate Partnership must be promoted there, where domestic and foreign investment must move freely. ICT initiatives must be out of the ordinary in otherwise backward countries, where possibilities are beyond any limits as is so obvious in Bangladesh. A new group of countries, not all the 79 LICs, should be specially identified as countries with vulnerable economies, disadvantaged by geography as land-locked and sea-locked, having problems of market integration in the wide globe,

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climatically thrown into danger zone for no fault of their own and as traditional baggage having inordinate pressure from population growth, poverty concentration and illiteracy. Such a group of countries must be reclassified, say as ‘vulnerable economies’. Measures for their development must be planned and executed in a new style. Resources for their development endeavour should be obtained on grant and concessional terms. That development of this group of countries should be accepted as the onerous charge for the enormous progress of civilization and the huge incre- ment of global wealth. It is, indeed, a tall order and perhaps a dream. But as mankind is at a crossroad no harm can be there in such a dream. The time of global turbulence is also the time of great opportunities to charter the way for a better future. Let us hope that in order to defray this virtuous charge collaboration and cooperation and coordination and consensus will be reached between nations, between agencies in the international public sector and also between non-governmental organizations. May Allah bless us all.

BELARUS: ANDREI KOBYAKOV Governor of the Bank

Our meeting takes place in a difficult period for the entire world economy. Despite the stabilization of the global financial system and the gradual resumption of economic growth, the growth trend has no firm basis, is geographically heterogeneous and subject to significant risks. The sluggish growth demonstrated by the developed countries remains to be the main risk since demand in these economies is of great importance for the global economy. Against the background of moderate inflation risks, the roll-up of non-traditional measures of monetary policy and increase in interest rates are premature. At the same time, the rise in world food prices and a possible spiral growth in prices for raw materials could create an additional reason for tightening monetary policies. Another risk is the high levels of public debt over the world, above all in European countries. It is certain that, in times of crisis, the states had to assume a greater share of the burden of supporting financial sector and implementing counter-cyclical fiscal policies, which led to a sharp increase in the debt burden on the sovereign balance sheets. Now, the need to maintain debt sustainability causes inevitable tough measures to reduce budget deficits in coming years, which will contribute to limited potential growth in these countries. A number of states will obviously have to take unpopular measures for this—to increase tax burden.

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In 2010, the Belarusian economy has been recovering somewhat more rapidly than expected. In the first 8 months of this year, GDP growth was 6.1 percent, the industry grew by 9.8 percent, and investments—by 6.3 percent. By historical standards, inflation is at a moderate level for Belarus—7.7 percent. Another positive trend is the faster growth of exports than imports—22.6 percent against 15.6 percent, respectively. The economic program under the Stand-by Arrangement with the IMF that was completed successfully this year in March played a key role in overcoming the crisis and correcting macroeconomic imbalances in Belarus. On one hand, the Program allowed economic policies aimed at reducing macroeconomic imbalances and, on the other, it enabled us to avoid the significant impact of the crisis on the social sector. We are grateful to the Fund that it found a possibility to support our efforts to address the crisis and implement economic reform in this tense period. Cooperation of Belarus with the World Bank in 2010 has received additional impetus in light of the extension of a US$200 million Devel- opment Policy Loan to the Republic of Belarus in end 2009. The loan supported the initiative of the authorities to conduct a series of economic reforms, including, in particular, liberalization of prices, reduction of barriers to business start-up, tightening of budget constraints and improvement of social security. In addition, in 2010 the World Bank approved a loan of US$125 million on the project to enhance energy efficiency. Belarus attaches great importance to the World Bank’s participation in current reforms and economic development of Belarus. At the same time, there is potential for deeper cooperation with the World Bank, which, as we hope, will be reflected in the new strategy of cooperation of Belarus with the World Bank, now being in the active phase of preparation. Hard realities facing the global economy amid the global financial and economic crisis became an incentive for the adoption by the Bret- ton Woods institutions of a number of radical measures aimed at support and rehabilitation of national economies. Belarus supports the efforts of the IMF and World Bank manage- ments in their efforts to implement reforms and address the challenges facing the global economy. The recent crisis has revealed serious short- comings in the mechanism of the world financial system, which requires from the IMF an increased quality of monitoring of systemic risks and expanded tools to counter identified threats. We support changes aimed at increasing representation of developing and transition countries in the Bretton Woods institutions and believe that the new participation structure will reflect the current economic weight of member countries more accurately.

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BELGIUM: DIDIER REYNDERS Governor of the Bank

The recovery of the world economy remains fragile and the international financial system is still under considerable stress. Therefore we need an effective and legitimate IMF, adequately financed and well equipped to intervene decisively when needed. An adequate mandate is a first important element in securing the effectiveness of the Fund. Considerable progress has been made in reviewing the Fund’s mandate. Offering policy advice and timely warnings to individual countries and to the international community remains a cornerstone of crisis prevention. Surveillance cannot be effective without integrating financial sector analysis. I therefore welcome the decision to make financial stability assessments mandatory for countries with systemically important financial institutions. Bilateral surveillance, resulting in high quality policy advice available to all members, continues to be at the heart of the Fund’s surveillance mission. However, we cannot ignore the growing importance of better understanding the impact of individual countries’ policies on others in the region and worldwide, nor the need to take these spill-over effects into account in designing policies. Hence, the need to deepen and strengthen the regional and multilateral aspects of surveillance and the need to have well focused discussions on these issues in the IMFC. The IMF has recently redesigned its toolkit of financial instruments. The Flexible and Precautionary Credit Lines still have to prove their worth. The Global Stabilization Mechanism is still under discussion and needs much more analysis before a decision can be taken. It remains to be seen whether the IMF has not again fallen in a trap, creating instruments in reaction to a crisis situation, which afterwards prove to be of little use. My country has always favored a simpler but very flexible toolkit. An effective surveillance mandate and lending toolkit need to be supported by sufficient resources. The Fund being a quota based institution; a recalibration of its total financial resources is needed through a significant quota increase. Although the pending quota increase is seen by most as a tool to adapt the distribution of voting power among members, we should not forget that the first objective of the increase should be to ensure the adequate funding of the IMF and to guarantee that the Fund remains quota based. In this light, we favor a quota increase of up to 100 %. Depending on the final outcome of the quota reform, a rebalancing of the NAB within total Fund resources will most probably be necessary.

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It goes without saying that the quota reform will lead to a substantial redistribution of quotas, to reflect the changes in the relative position of members in the world economy. In Pittsburgh and Istanbul, we agreed on the major principles for this exercise. I am committed to reach an agreement consistent with those principles. This means that the current formula, however inadequate it is considered by some, must be the basis for this exercise and therefore for the distribution of the quota increase. At a later stage, the formula can be reconsidered, taking into account i.e. progress in data gathering, but it should continue to reflect all aspects of the Fund’s mandate. To complement a distribution of the quota increase on the basis of the formula, limited ad hoc increases can be considered, to protect the poorest countries and to address the most outspoken forms of underrepresentedness. All overrepresented countries should contribute to the shift to underrepresented countries, without exception. My country will contribute significantly. At the same time, it is contributing significantly to the financing of the Fund, through bilateral loans and the new NAB. Therefore, I will under no circumstance accept a quota share that would be lower than our calculated quota share. The quota reform is linked to a set of broader governance reforms. The role of the IMFC in setting the Fund’s strategic direction must be enhanced and the reformed IMFC or an IMFB should have more focused discussions on the risks and policy actions related to the global economic and financial situation. A clearer delineation of the responsibilities of Ministers and Governors, the Executive Board and the Fund management is needed. The accountability of the Board and management must be increased. The appropriateness of the current voting thresholds could be reconsidered. The effectiveness of the Executive Board is crucial for the functioning of the IMF. For an institution the size of the Fund, 24 seats is an adequate size to ensure both effectiveness and inclusiveness. This number should be enshrined in the Articles of Agreement. Countries should remain free to choose their representative in the Executive Board. It is evident that the Board composition should also reflect the evolutions in the world economy. My country is ready to play its part in giving emerging market and developing countries a higher profile in the Executive Board, assuming other countries will also play their part and contribute to a balanced compromise on the quota and governance reform package. The meeting of the Development Committee takes place at a critical juncture. While the approval process of the IBRD’s general capital increase and the second phase of the voice reform process are following their course of action, some concessional windows’ replenishment discussions, including IDA’s, have been or are about to be concluded

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this year. This is all happening in the context of budget reforms and constraints in some (but not all) member countries. Some middle and low income developing countries have demonstrated a good measure of resilience to the global economic crisis. Bet- ter resilience does not necessarily imply a reduction in needs. Develop- ing countries’ demand for additional development resources, policy advice, analytical services and capacity building is huge and the development financing needs remain high. This message should be reinforced. In this connection, the September UN MDG Summit concluded with the adoption of a global action plan to achieve the eight anti-poverty goals by their 2015 target date and the announcement of major new commitments. A substantial IDA16 replenishment effort is needed to scale up core development spending in the poorest countries in order to help realizing the MDGs. I call on traditional as well as emerging donors to substantially increase their contributions, in particular, the latter. With more voice comes more financial responsibility. In return, IDA (as well as other development institutions) should continue to refine its results framework. While benefiting from more financial resources, the Bank should vigorously continue with the implementation of its reforms and align its strategies and activities to its post-crisis directions framework. Man- agement is responsible for the preparatory work and implementation, but this effort should be guided by the Executive Board. We welcome the progress so far. There has been a lot of focus on voice and financial capacity reforms, and on some internal reforms. For the near future, the Bank should focus on sequencing and prioritizing reforms, and strengthening directions and communications. The international community forcefully responded to the global financial crisis, including the World Bank Group. The IBRD enhanced its capacity to respond by substantially scaling up its lending volume during FY09–10. In addition to rescheduling specific countries’ portfo- lio, IDA created its pilot Crisis Response Window (CRW). IDA Deputies are currently discussing the creation of a permanent CRW. Crisis response coordination among development partners and institutions is crucial in order not to waste scarce resources. In this context, I urge the IMF and World Bank to continue to improve their collaboration (e.g. in the context of the CRW) based on the recommendations of the Malan report. Staff and institutional coordination at the country level needs to be brought to a next level. Finally, I would like to thank the US authorities for their hospitality shown during the annual meetings. I would also like to call on the IMF and World Bank Group to organize the forthcoming IMFC and Develop- ment Committee meetings on separate days. Squeezing the IFMC and DC in one day does not provide sufficient time for meaningful discussions.

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BELIZE: DEAN BARROW Governor of the Bank (on behalf of the Joint Caribbean Group)

It is an honor, as Governor for Belize, to address this Joint Meeting on behalf of the Member States of the Caribbean Community, (CARI- COM), namely Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago. Our delegations wish to express appreciation to the management and staff of the Fund and the Bank for the arrangements that have been made during these meetings. At the outset, I would like to reiterate the gratitude of the CARI- COM for the tremendous outpouring of international support for the people of Haiti, following the devastating earthquake in January 2010. We stand firmly behind our Haitian brothers and sisters, as they attempt to recover from this disaster. At the same time, this tragic event presents us with an opportunity to assist Haiti as it seeks to build more resilient institutions. We congratulate and thank those who have promptly delivered the financial assistance pledged at the donors’ conference in New York this past March and strongly encourage other development partners to make good on their promises. Nine months after the earthquake, I feel that we all share a sense of responsibility for the plight and sufferings of those still living in precarious conditions under makeshift roofs, for the newly unemployed and for the profes- sionals who are forced to seek livelihoods elsewhere.

Vulnerability

The countries of the Caribbean Community which are comprised of many small and open economies are among the most vulnerable in the world, especially to natural disasters as well as food and energy price shocks. Given the coastal nature of the islands and continental countries in our region, significant sums of money are expended each year to safeguard the natural environment from severe degradation. These vulnerabilities present real threats to sustainable development.

Global Economic and Financial Crisis

Like many other countries in the world, the economies in the Caribbean were not immune to the negative consequences of the global economic and financial crisis. In fact, the nature of the economic

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structures of our small states made the negative impact even more pronounced. Many Caribbean economies have experienced sharp declines in output, following the depressed tourism market, weak commodity prices and reduced inflows from remittances. While the process of economic recovery has restarted at the global level—led by some emerging market countries—the economic performance of the Caribbean region is trailing that of the more dynamic emerging economies. With a jobless recovery projected for the next few years, the Caribbean region is expected to experience only very modest growth in the short-to-medium term. To provide a platform for renewed growth and development, the Caribbean authorities are committed to fiscal consolidation and debt reduction, while strengthening social safety nets and bolstering growth-enhancing public sector investments. Regional governments are also committed to fostering more business friendly environments to stimulate increased domestic and foreign investments, cognizant that the global supply of capital is likely to remain below pre-crisis levels. The CARICOM region believes that a well regulated and stable global financial system is conducive to growth over the medium term, and could have a favorable impact on the cost and supply of investment financing for developing countries. In this regard, our authorities support the work of the IFIs and multilateral organizations. We urge, however, that these initiatives be carried forward in a transparent and nondiscriminatory manner which invites inclusive participation in the design of incentives and remedial mechanisms. We expect, therefore that the IMF and the World Bank will responsibly exercise their memberships within the Financial Stability Board, voicing the interests of all their member countries, and being strong advocates of positive incentives and technical assistance to help countries address regulatory weaknesses.

Alternative Energy

As a means of reducing the energy costs in the Region, many Caribbean countries have been exploring the feasibility of deploying solar, hydro, geothermal and wind energy for both household and industrial use. The overall intention is to reduce dependence on fossils fuels while simultaneously minimizing the cost of energy imports and the loss of foreign exchange. Increased tax concessions and incentives for the development of renewable energy can go a long way in promoting widespread deployment of these alternatives in the region, and we urge the international community including the IFIs led by the World Bank to partner with us to bring this process to fruition.

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Access to Resources

Against this background, the response from the Bretton Woods institutions to the CARICOM region has been mixed and uneven. The IMF has responded to some countries with programs aimed at stabilization, and structural reforms to boost medium term growth potential. More generally, through its surveillance activity, and valuable technical assistance, the Fund has been assisting all of the CARI- COM countries, in formulating polices to restore fiscal and debt sustainability, address financial sector vulnerabilities and increase growth. The medium-term adjustments will also require closer engagement by the World Bank. At a time when access to concessional financing is still important to address critical development needs, some of the countries within CARICOM are generally not permitted to borrow from the Bank. I urge the Bank to reexamine its policies on graduation at all levels, whether it be from IDA, IBRD or IFC to encourage greater flexibility in the access to resources. Mea- suring development by per capita income alone, in the face of rising vulnerability, must not be the sole criteria for determining eligibility to World Bank Group resources.

Bretton Woods Institutions’ Activities

During the past few years, both of the Bretton Woods Institutions have been engaged in far-reaching discussions on reforms. The World Bank Group completed a significant package of reforms which increased voice and participation for emerging and developing countries, sharpened the institutions focus on post-crisis policies, aug- mented the Bank’s capital and ushered in internal changes within the institutions. We commend the Bank for taking these bold steps to reform its operations and look forward to more tangible results for the CARICOM region.

Voice and Participation

In the recently concluded Voice and Participation reforms at the World Bank, the shareholdings of most Caribbean countries remained largely unchanged while Trinidad and Tobago and Jamaica emerged with reduced shareholdings. In our opinion, any future adjustment of the shareholding must be undertaken with a view to not only protecting low income countries but also small middle income countries that share similar vulnerabilities.

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Internal Reforms

With respect to the ongoing internal reforms at the World Bank, we recognize the commitment to improve organizational efficiency, capacity and development effectiveness. We welcome the work on Investment Lending reforms, specifically the risk-based approach to lending, enhanced board oversight on areas of greatest risk and improved management accountability.

Capital Adequacy

Over the past months, the World Bank Group has agreed to a general increase in IBRD’s capital as part of a package of measures aimed at enhancing IBRD’s financial capacity. We welcome this recapitalization and look forward to increased resources from the World Bank Group.

IDA

We remain supportive of efforts to increase the financial resources in the concessional lending window and note that IDA Deputies have been in discussions on the 16th Replenishment. We welcome progress made on IDA I6’s special themes: fragile and conflict-affected countries, gender and climate change and broadly support Management’s proposals for IDA 16.

IMF Reforms

We welcome the reforms being made to the IMF’s lending and surveillance mandates and note the increased range and flexibility of instruments for both concessional and non-concessional borrowing. The introduction of the Post-Catastrophe Debt Relief Trust Fund, (which Haiti has already accessed) along with the new Precautionary Credit Line are steps in the right direction. The decision by the Fund to improve its surveillance of the global financial system through regular and mandatory financial sector assessment of countries with systemically important financial sectors should help to enhance global financial stability. At a time in which access to global capital market is relatively limited, we also welcome the tripling of the IMF’s lending capacity through the New Arrangements to Borrow (NAB). We urge that the NAB remains a backstop for quota resources. In an environment in which many Caribbean countries have begun to experience balance of

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payments difficulties because of declining trade in goods and services these enhanced facilities can provide additional resources especially during periods of critical needs. One critical concern that we wish to underscore is the slow pace of reforms on quota and governance. We urge the Fund to accelerate the process of increasing quota and voice of dynamic emerging market and developing countries (EMDCs). In the process, we support preserving the voice of the poorest members, which includes some members in CARCOM that are eligible under the PRGT facility. We also emphasize that the increase in quota shares and voting power of dynamic EMDCs should not be at the expense of other EMDCs. In addition, the size of the quota increase must be so adjusted to ensure effective balance between the resource needs of the IMF and the overall goal of quota realignment.

CARTAC

We thank the IMF for its continued support through CARTAC which support development of our region in myriad forms through its excellent model of short term support to our governments. We are also grateful to Canada, which through CIDA continues to be the largest financial donor to CARTAC. The assistance of other development partners is acknowledged including, the United Kingdom (DFID) the European Union, IDB and the UNDP. However, the overhead costs of IMF oversight of CARTAC are out of proportion and need to be reduced, to make efficient use of funding available. For their part, CARICOM countries also commit to augmenting regional financing support for CARTAC. However, for some of our authorities budgetary constraints could delay the onset of such increases.

Conclusion

In closing, I wish to thank the IMF and the World Bank Group for their continued engagement with the Caribbean, and for their enhanced surveillance of the region’s economies. We would like to see this relationship strengthened over the medium term, especially whilst our technical assistance and financing needs remain elevated. The Caribbean has a vested interest in the reforms of the Bretton Woods institutions, and we encourage accelerated progress on these agendas. Rest assured, that we take our responsibilities for fiscal consolidation, financial stability and growth-enhancing structural reforms seriously, and look forward to advancing these initiatives in close dialogue, and the with support of our development partners.

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BOLIVIA: LUIS ARCE CATACORA Governor of the Fund

The current crisis of capitalism is deeply rooted in four recurring elements: the climate crisis, energy crisis, food crisis and financial crisis, therefore we are facing a structural senile capitalism crisis. The 2008 global financial crisis unfortunately has not yet come to an end and there are double-dip downside risks, since growth has not fully recovered in Europe and the United States. Moreover, a number of European countries are still facing problems with their sovereign debt, and empirical evidence shows that debt crises often follow financial crisis. The World Economic Outlook states that sustainable and healthy economic recovery hinges on two pillars: first, internal rebalancing, through strengthening private demand in advanced countries and fiscal consolidation; and second, external rebalancing, through increasing net exports. As I mentioned in October last year when the Regional Economic Outlook was about to be published, the internal rebalancing seems to rely on a significant fiscal stimulus cuts without giving enough consideration to side effects around the world. I believe that to ensure economic recovery we must carefully asses the timing of such cuts and also be thoughtful and proactive regarding fiscal consolidation, especially in advanced economies. It is also necessary that countries that are engaged in fiscal stimulus think about the usefulness of channeling stimuli mostly through financial entities and corporations. One option is to channel it directly to the consumers, supporting social programs and policies, as well as contributing to income redistribution. The financial channel has proven to be limited. In fact policy interest rates are close to zero in many advanced countries and lending rates are at a very low level yet credit in sluggish; therefore, investment is not enough for growth and employment. Another global strategy factor in combating global crisis and dissipating downside risk of double-dip is to shore up countries with sovereign debt problems, without ruling out debt restructuring. It is also important to remember that the current financial crisis hit many emerging and low-income countries, not through balance-of- payment channels but through fiscal accounts, unbalancing their budgets, even though they managed to keep fiscal discipline in boom years. Thus, social expenditure for education and health is endan- gered and therefore, these countries are in urgent need of budget support at concessional rates and the Fund has to play a role in attending to these needs. It is worth noting that external equilibrium depends upon fiscal stance.

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The external rebalancing is plausible but it is not going to happen relying only on fully flexible exchange rates, productivity-enhancing measures or free trade agreements, which may favor only some of the participants. It is imperative that uncertainty regarding the policy response in advanced countries to risks of a double-dip recession dissi- pates. It is also necessary to diminish volatility in exchange rate markets. Incidentally, financial regulation must play a more active role to moderate speculation in financial markets that cause damaging effects, especially in emerging and low-income countries. Capital controls, in the form of taxes or restrictions or exchange rate intervention are fair responses to those damaging effects. The current economic crisis is not going to be the last, and it seems that the Fund will not be of any help to prepare ourselves to timely identify a future crisis, not because it is not capable of doing so but because its main shareholders would not want to be stigmatized or embarrassed before their citizens and the international community. So, what can we ask for in this regard? We ask the advances countries— where the crisis originated—for responsible action, to put regulations in place and be preemptive, to avoid future global crises and their disas- trous consequences, such as those we are enduring at this time. Greater core capital in financial institutions and addressing supervision weaknesses are among the necessary measures to be implemented. Bolivia— a small country—has suppressed subordinated debt as capital for its commercial banks, which requires greater risk capital for bankers. The World Economic Outlook also says that monetary policy has to be accommodative to address a sluggish economic recovery. In Bolivia we have taken one step further. We believe that monetary policy is not only for price stability or an indirect instrument for growth, but also it has to play a role in economic development. Countries like Bolivia need to break commodity dependence and develop domestic demand as a means to reach greater growth. For that matter, all policy instruments are to be effectively used. Fiscal policy is key for a more dynamic economy not only for the present conjuncture but also for the long-term strategy, in which the state is the main engine of the economy. It is essential that the Fund’s policy recommendations for this and future crises leave out ideological concepts about free market policies which, by the way, have failed in many countries. Members’ quotas have to increase substantially to realign the global GDP-to-quota ratio according to today’s needs and to assure appropriate access to Fund resources in case of need. Along the same lines, it is imperative to protect emerging and low-income countries’ share in the Fund’s quotas if the Fund is to be a cooperative institution. This Annual Meeting should also conclude with more concrete guidelines

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for implementing quota shift from advanced countries to emerging and developing countries for at least 6 percent. The quota formula clearly presents faults in its variables and weights that impede appropriately reflecting members’ participation in the global economy. At present, this formula is hurting emerging and developing countries. We ask for a grater weight for the PPP-GDP in the formula and data for this purpose should include 2009. The Fund’s governance reform must address what is important. We do not believe that changing or creating another IMFC-type body is the right step. What we need are effective engagement and discussion mechanisms at the Governor level to achieve a greater democratic participation in the decision-making process, thereby preserving the Exec- utive Board’s role. The number of constituencies has to allow member participation and certainly grouping them in a smaller number of constituencies will be detrimental for emerging and developing countries. Furthermore, the Fund should introduce a double majority in the decision-making process for issues that require consensus to be legitimate. In the selection process for the Managing Director we oppose any nationality restriction which is a kind of discrimination. The Fund, over time, has changed its lending facilities trying to accommodate them to certain type of countries with common needs and characteristics. The last approval of the Precautionary Credit Line is another step to better serve the membership, and certainly it may help countries—mainly emerging and developed—that comply with the prerequisites. However, there are countries whose economic conditions do not fit in the pre-requisites of the new lending facilities and yet they need the Fund’s support. These countries may have State-led economies because their private sector is not dynamic enough for the economy, and efforts made to diversify their economies would notably improve their balance-of-payments position. Yet their gains in fiscal stance have disappeared as fiscal income decreased because of the crisis and they are struggling because a lack of temporary budget financing to keep up social expenditure and public investment. We see that there is no lending facility in the Fund’s financial architecture to support these types of countries. I reiterate that the Fund needs to work on this issue as soon as possible, since a double-dip recession may put low-income countries in need of meaningful financial assistance. The Fund has recently made it mandatory for its systemically important members be subject to periodic assessments under the Financial System Assessment Program. Certainly this means significant progress in bilateral surveillance. However, in light of previous crises like the Asian crisis or Russian crisis, we wonder why this has not hap- pened earlier? Why did the Fund only make efforts to conduct such

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assessments in emerging or low-income countries? Certainly it cannot be claimed that a financial system sector assessment on United States would have avoided its financial crisis but the world had valuable information available to detect tendencies. This situation illustrates once again the need for a greater democratic participation in the Fund’s decision-making process rather than only in big share holders’ decisions. We suppress any veto power in the decision-making process in the Fund.

CHINA: ZHOU XIAOCHUAN Governor of the Fund

The financial crisis which erupted two years ago has spread from developed countries to emerging markets, and from the financial sector to the real sector. In response, the international community has been making unprecedentedly concerted efforts to restore market confidence and contain spillovers of the crisis, while strengthening macroeconomic policy coordination and deepening financial supervision cooperation. These efforts have seen preliminary effects. However, global recovery so far remains sluggish, with paces varying across regions and uncertainties still arising. Recovery in developed countries is yet to be solidly based, highlighting the need for continuous progress in financial reform and restructuring to rebuild a sound financial system. In addition, relevant countries need to formulate and implement credible fiscal consolidation strategy, taking the necessary steps to mitigate threats of sovereign debt risk to financial stability. Recovery in emerging markets is relatively strong, thanks to the basically sound macroeconomic policy frameworks. But severe challenges remain, including rising inflationary pressures, reduced external demand, and increased volatility of capital flows. Economic stability requires continuing structural reforms. The development of low- income countries remains an urgent task, requiring continuous support by the international community—particularly developed countries— and fulfillment of aid commitments. Since 2010, China continued to implement the policy package responding to the impacts of the global financial crisis, making targeted efforts to strengthen and improve macroeconomic management, facilitating transformation of the growth pattern and structural adjustments. The economy is developing in the direction desired by the macroeconomic management, maintaining relatively rapid growth and stable prices. Structural adjustments have reaped early harvest, resulting in a more balanced external position. Financial markets remain sound and robust, and the value of the RMB stays largely stable, with

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some modest rise. Supported by the steady growth of the Mainland, Hong Kong and Macao maintained strong momentum of recovery, with a pickup of external trade and steady decline of unemployment. China’s proactive anti-crisis efforts contributed greatly to containing further spread of the destructive effects of the crisis, contributing to global recovery and structural adjustments. Looking forward, a strong, balanced, and sustainable growth will be the common goal worldwide. China stands ready to cooperate with other countries on the basis of equality and mutual benefit. We support the joint efforts to improve resource allocation for industries worldwide. We call for a more balanced trade and new financial architecture for security and stability. We urge to develop an inclusive growth approach to a more harmonized global economy that would benefit us all. To establish an equal, inclusive, and orderly international financial architecture, the international community has placed great importance on reforming the International Monetary Fund and the World Bank, aimed at a thorough improvement of their governance structure with a significant increase of developing countries’ representation and voices, and tangible progress in upgrading their ability to fulfill their mandates. The IMF’s quota reform has now entered into a critical stage. This reform will significantly enhance the IMF’s legitimacy and representativeness, which will ultimately benefit all the member countries. We call for understanding, support, and contribution to this reform. We call on all parties, in the spirit of cooperation, to seek a win-win solution through compromise, to complete the 14th General Review of Quotas before the G20 Seoul Summit, and to fulfill the Pittsburgh Summit’s commitment of the shift of quotas and the protection of the poorest countries’ voices. Only with the completion of the quota reform would broader governance reform be based on a solid foundation, and the overall legitimacy, accountability, and effectiveness of the IMF be credibly secured. We hope that the IMF and the World Bank could sum up the experiences and lessons of this global crisis, be modernized with creative thinking and innovation, and rebuild the global economic and financial architecture accommodating new developments and features. The IMF shall adjust its focus of surveillance, paying more attention to the macroeconomic policies of major reserve currency-issuing economies, the financial sector, and the cross-border capital flows. Moreover, it shall refine the international monetary system, keeping the exchange rates of the major reserve currencies relatively stable, while diversify- ing and rationalizing the system. In addition, it should replenish its available resources based on quota increases, and sharpen the edge of

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its lending instruments to fully meet member countries’ needs to weather the impacts of the crisis, especially the spillover effects. As a result of joint efforts of all parties, the spring meeting of the Development Committee struck an important step toward greater voice and representation of developing countries. It enables the World Bank to perform its functions of poverty reduction and development more effectively. The member countries of the World Bank shall continue the cooperation and make joint efforts to achieve the ultimate goal of equitable voting power between developed countries and DTCs over time. The spring meeting also approved the reform package on strategic direction, general capital increase, and internal governance of the World Bank Group, laying a solid foundation, as well as securing the needed finance, for the Bank’s reinforcement of its poverty reduction and development mandates in the post-crisis period. As the world’s most important development and aid institution, the World Bank should continue to contribute to thought and research on development, intensify financial support to developing countries, and enhance efforts toward global poverty reduction. The key objective is to assist developing countries in building a strong institutional capacity of development and achieve the Millennium Development Goals.

COLOMBIA: JUAN CARLOS ECHEVERRY GARZON Alternate Governor of the Fund

As Minister of Finance of Colombia I have been asked to present the prospects of our country for you. Let me tell you that President Santos has an amazing and comprehensive agenda for the next decade, although our government goes only for the next four years. Why? Because we believe that this will be the decade of Colombia. A decade in which Colombia will overcome poverty, develop a middle class, a substantial potential in exports, in mining, in agriculture, in manufacturing products and also in R & D and innovation. Colombia can exploit also the fact that it has developed a substantial infrastructure. Also it is a diverse country which has a Pacific Coast, a Caribbean Coast, we have Amazon, and we have a chain of mountains. This diverse geography, although it is a challenge it creates also opportunities for many different products in agriculture. We have sun basically the whole year, substantial sources of water, fresh water, and considerable and very good labor force and also the possibility of developing in all areas and all regions in Colombia. In the cities we hope to create an engine which will be housing. The creation of at least one million of new houses for the next four years would also be an engine of urban economic activity.

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But definitely what will define our future are education, innovation, science and technology. We plan to double our investment in human capital, in our universities, our schools, our high schools, and our centers of research, so that the productive sector and universities come and work together in order to create new advantages and new opportunities for the country. The goal, of course, is the creation of employment and alleviation of poverty. These other things are means to reach those goals. Those means also will imply, of course, that we can grow at least at six percent per year over the next decade and we plan to create three million jobs at least, and to get seven million people out of poverty. Colombia has 45 million people. It is a big country for Latin Ameri- can standards and for world standards. For some reason, it is now part of the CIVETS with Indonesia and Turkey and South Africa, etc. In Latin America, with other countries that are well managed, we will present a very interesting magnet for investment, investment for mining, investment for manufacturing, investment for services, investments for many different activities that are flourishing in Colombia. Those investments as well will allow us to create capital, physical capital and to create the possibilities for growth and savings in the public and private sector. We have to prepare for shocks, for international shocks. We know that we live in a very complicated international environment; but we know that Colombia will have the possibility of exploiting the mining boom and, passing a substantial reform agenda, create savings for future, savings that would allow us to cushion all shocks that come from outside, that come from international economy. Hence, President Santos and his economic team and his government, has a robust and ambitious economic agenda, an agenda that will put Colombia in the path of a new era, an era of prosperity, or of democratic prosperity as President Santos has called it. Domestic prosperity means prosperity for everybody. The idea is that we do not leave anyone behind, that all Colombians can share this job ahead of sharing the economic prosperity with all our nationals. We would attract as I said trade, FDI, and possibilities of growth. The World Bank Group can help us in creating this new environment; first, of course with lending; second, with the transfers of knowledge; third, with the partnerships that the International Finance Cor- poration has already explored in Colombia in the last 15 years and in partnership with Colombian firms creating substantial returns for everybody. So we hope to have the World Bank Group as a partner in this new path of development, a new era for the country. So we hope that all of you think of Colombia as a country of this century. And when you think of the future, you think of Colombia.

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ECUADOR: KATIUSKA KING MANTILLA Alternate Governor of the Bank

Sixty-six years ago the Republic of Ecuador joined 28 other countries to approve the Articles of Agreement that formed the International Monetary Fund. This institution was conceived—let us recall—at the United Nations Monetary and Financial Conference celebrated in Bret- ton Woods in July of 1944, as a bastion of a new and better world just emerging from the ashes of World War II. Since that day, the world has changed profoundly. Neoliberalism has proved to be a failure and, nevertheless, globalization continues: it promises wellbeing and wealth to all, while in fact it brings exclusion and poverty, pollution and climate change. The crisis of 2008, with its origins in the greed and irresponsibility of the financial sector, left the world with 60 million new human beings living in poverty. Poverty is not a label to be attached to a human being if he lives on less than one dollar or one dollar and twenty-five cents per day. It is an abject and desperate condition that inhibits the capacities, the functioning, and the liberties of women and men, young and old, and corrodes social cohesion. Is this the consequence of the capitalist order in the same way that the environmental crisis appears to be? The failure of the Kyoto Proto- col on climate change and the coup de grâce that it received in Copen- hagen last December appear to confirm this hypothesis. Yes, the world has changed, and not necessarily for the better. In fact, the detrimental change has far outweighed the transformations that we have been able to achieve through organizations called upon to guarantee global peace and wellbeing. When the subprime mortgage crisis unleashed the world-wide financial crisis, there was a general call for the exhaustive restructuring of the global financial architecture. Less than two years ago we clamored to restore the regulatory power of the public sector over financial markets hoping that this would prevent new attacks on the common good. Likewise, we clamored the urgency of transforming the governmental structure of international financial institutions to make them more democratic and pluralistic. Yet, aside from an extraordinary disbursement of special drawing rights, what exactly has changed since the crisis? The Government of the Republic of Ecuador, which I am honored to represent, maintains the conviction that a new international financial architecture is indispensable to our capacity to confront the challenges that history has brought upon us. Our efforts to build the Bank of the South and to establish the Unified System for Regional Com- pensation (SUCRE) are oriented toward this end. Ecuador has responded to the crisis with very different policies from those prescribed by John Williamson more than two decades ago.

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In three years, and in spite of the global crisis, we have more than doubled public investment in education and health. Since 2007, we have increased tax income an annual average of 14%; in August of 2010, the burden of public foreign debt was 13.8% of GDP and total service to foreign debt (public and private, considering amortization and interest) has been reduced to 9.6% of GDP. My Government holds the conviction that private enterprise is fundamental for the fulfillment of our development objectives and we are open to new foreign investment, as can be corroborated by Sinohydro, the Chinese company that will invest 1.682 billion USD in the largest hydroelectric project ever constructed in my country. Equally fundamental to our development objectives is the promotion economic systems based on social solidarity. This can only be attained through an efficient and modern public sector, not in the absence of the State, as was the general thinking during the era of uni- vocal economic thought, which preceded us. This is why we have strengthened our public banking system—between January of 2007 and June of 2010, investments increased to 7.015 billion USD, while between 2000 and 2006, these merely reached 2.092 billion USD. In defiance of the advice championed by orthodox economic thinking, Ecuador did not turn to structural adjustment in the face of the global crisis. Despite the extraordinary vulnerability to exogenous events that defines an economy as open as ours, between 2007 and 2010 Ecuador has maintained an average GDP growth rate of about 3.4%, we have not been overwhelmed with unemployment (unlike many other economies), and, while in Latin America the crisis drove 10 million people into poverty, Ecuador’s poverty index decreased from 37.6% in December 2006 to 33% in June of 2010. These indicators are promising and confirm the integrity of a sovereign economic policy that prioritizes human beings above capital and which seeks to build a society with a market rather than a society for the market. This economic policy is derived from a new conception of development whose objective is not the infinite search for an increase in the standard of living (based on consumerism) but rather the creation of social and economic conditions that allow us opportunities for living well—that allow for a buen vivir based on solidarity, a harmo- nious relationship with nature, gender equity, ethnic equity, and inter- generational justice.

FIJI: SADA REDDY Governor of the Fund

It is indeed an honor for me to deliver this address on behalf of the delegation of the Republic of the Fiji Islands, on the occasion of the

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International Monetary Fund and the World Bank Annual Meeting. I congratulate you on your appointment to Chair this joint annual discussions. I also warmly welcome Tuvalu, which became the newest member of the Fund and World Bank Group on 24 June 2010. In the last couple of years, the global economy has been confronted with huge challenges in the aftermath of the worst financial and economic crisis in the post war era. Through the well coordinated action of governments and major central banks as well as the support from the international multilateral institutions, particularly the International Monetary Fund and the World Bank, the world has avoided a recession of equal proportion to the Great Depression of the 1930s. Since then, growth prospects for the world economy have improved markedly with global growth for this year now revised up to 4.6 percent. While this implies that the worst effects of the recession may be over, there are still downside risks to the expected full recovery of most industrialized economies. Recent updates suggest that the level of unemployment in most advanced economies is still high, economic activity is still lower than pre-crisis levels and higher budget deficits along with rising public debt levels are curtailing the ability of economies to undertake further fiscal stimulus to support economic recovery. Despite these difficulties, global financial and economic conditions have improved compared to twelve months ago. World financial markets have stabilized and the global economy is envisaging a favorable economic outturn this year. Nevertheless, as we move forward, it is critical for Governments to be proactive in implementing policies and strategies necessary to fast track economic recovery, which in turn will support the revival of developing economies such as ours. I urge the Fund to be more proactive and encourage engagement and mutual cooperation at the global level. Global cooperation and engagement by the Bretton Woods institutions during this period is essential to supporting economic growth, which will create jobs and help alleviate poverty. Financial and monetary stability is crucial for sustainable economic growth. The need for this and the vital role played by the Fund in crisis prevention and resolution has been brought to the fore following the impact of the Global Financial Crisis (GFC). In this regard, I commend the Fund for its ongoing work towards maintaining stability in the international financial system. More specifically, I wish to comment on a few critical areas where the Fund should put more emphasis.

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The first is on the area of surveillance that is undertaken by the Fund. The GFC, has revealed weaknesses in past surveillance practices leading up to the crisis where the focus has been on individual countries rather than on systemic issues. The gravity of the crisis and its negative implications for small developing economies should compel a change in emphasis. Surveillance, in my view, should be vigorous in terms of the traditional country-level macroeconomic analysis, better encompass financial sector and regulatory issues, and take into account cross-border spillovers and systemic risks. I am aware that the Fund has already advanced on this front through its Early Warning Exercise. Given the vulnerabilities of economies to crisis, I urge the Fund to priorities macro-financial stability in its surveillance activities, which will help mitigate systemic risks inherent in financial sectors of developed economies. This will help cushion the impact of any crisis on small and open vulnerable island states such as us. We urge the Fund to take steps that will strengthen and modernize surveillance so that its effectiveness is enhanced and potential future crises are detected early and avoided. The second issue, is financial sector reforms. I applaud the Fund for its input into this ongoing debate particularly on its call for tougher and better regulation, its collaboration among countries and the proposal for a global tax on banks. While there is a general agreement that countries, especially the advanced economies, need to reform their financial sector, the pace at which the reforms are being discussed and implemented seem to have lost momentum with the pick-up in global economic recovery. I urge the Fund to maintain its stance on reforms and work vigorously towards resolving issues that will remove hin- drances to progress on this front. Thirdly, I wish to restate our strong reservations towards the Fund’s intention to charge for Technical Assistance (TA). The vulnerabilities of developing countries to external shocks were clearly evident in the aftermath of the crisis. Apart from the contraction in economic activity, we had to implement painful reforms necessary in areas such as the civil service, public enterprises, public financial management, the financial sector and land reforms. These reforms should bring about changes that would help us achieve sustainable economic growth and help us weather the effects of external shocks in future. The fourth issue, is regarding IMF lending facilities. I highly commend the commitment by the Fund and G-20 countries on the provision of over $200 billion and a further $283 billion in SDR to assist countries affected by the crisis. I also commend the Fund for the

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introduction of its new Flexible Credit Line (FCL) which provides a strong safety net for countries with a good track record and the tripling of concessional lending commitments to low-income countries, charg- ing zero interest through 2012. Furthermore, I thank the Fund for the extension of the duration and credit available under the FCL as well as the introduction of a Precau- tionary Credit Line as an additional credit facility for countries that might not qualify under the FCL strict requirements. I extend my support for proposals under discussion to establish a framework for dealing with systemic crises as well as the move towards regional financial arrangements similar to those undertaken with Euro-zone earlier this year. As a small island developing country that is dependent largely on the rest of the world, Fiji is grateful for the goodwill of countries that have financially pledged and cooperated with the Fund under a common goal to prevent a global recession, restore confidence and revive world economic growth. The Fund’s timely action and willingness to make their lending programs more flexible and the stream- lining of policy conditions to support vulnerable economies, have contributed greatly to restoring confidence and helping avert a greater crisis. I would also like to comment on Governance issues at both the Fund and the Bank. Since their inception, both these organizations have been quota based and we agree that this quota based system should remain in place. However, for the operations of the Bretton Woods institutions to remain relevant and effective in future, it is important that we reform the governance structure to reflect the significant roles now played by major developing economies in world economic affairs. Increasing their voice and representation will make the institution more credible and thereby reinforce their legitimacy as policy advisor to its members. I understand that there have been some discussions on this issue within the Fund particularly in relation to the quota increase to dynamic emerging markets and developing countries by January 2011. This is a commendable move and I urge the Fund to pursue all avenues to realize this proposal and thus make the Fund a more legitimate and effective agency in the long run. I also wish to briefly remark on the sustainability of public debt. Due to the unparalleled financial bailouts undertaken by Governments over the last two years, debt levels in most developed and developing countries have reached unsustainable levels. I am of the view that countries should always be mindful of the long term sustainability of

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debt and the need to address this issue, particularly persistent fiscal deficit. I acknowledge that the Fund is already playing a critical role in this area through policy advice rendered to member countries and I urge the Fund to maintain momentum. The Fiji economy is still recovering from the effects of the global financial crisis. Combined with the devastating impact of two tropical cyclones this year and the prolonged drought that is affecting the sugar producing region of our country, Fiji’s GDP growth for 2010 will see downward revision from the 1.8 percent growth earlier anticipated. Faced with huge challenges last year, we implemented various policy measures aimed at facilitating growth on the domestic front and stabilizing our balance of payments position on the external front. As a result of these measures, foreign reserves have stabilized. It is anticipated to remain at comfortable levels by year end. Inflation has fallen in 2010 and should remain low over the next year. At this juncture, we would like to acknowledge and sincerely express our gratitude to the Fund for its timely financial assistance without which the pressure on our balance of payments would have been far more serious. The SDR injection of around US$93 million in the second half of 2009 boosted our reserves level and greatly helped restore confidence to our economy and the financial system. Current foreign reserves levels are around US$630 million, equivalent to over 3.8 months of imports. We also thank the Fund for its timely visit and advice on improving our macroeconomic situation. Following the Article IV Mission in 2009 and the ongoing consultation on a possible Stand-By Arrange- ment (SBA) funding support by the Fund, the authorities have progressed on the recommendations made by these successive Missions. These include the removal of interest rate caps on commercial banks interest rates, relaxation of capital controls, consolidation of government finances and the review of the Reserve Bank of Fiji Act to enhance the autonomy and independence of the central bank. In addition to these polices, a new market based monetary policy framework was implemented, preparatory work is being carried out on an appropriate exchange rate regime that would allow us to better absorb shocks as well as the finalization of a timeline for the gradual phasing out of price controls. Overall these policies should help lower the cost of doing business, facilitate competition and increase efficiency, productivity and consequently growth in Fiji. Furthermore, we continue to partner with financial institutions for the development of

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small and medium enterprises and the microfinance sector in Fiji. I believe that the development of this sector will facilitate poverty alleviation in our country, as has been proven in other developing economies. The support we have received so far from internal stakeholders in our financial industry has been tremendous and this mutual cooperation should facilitate economic activity and also enhance our future growth prospects. On the other developments in our country, I would like to reiterate the point I made last year, that Fiji recognizes the need to have a clear and predictable path for the restoration of democracy in the country. Apart from the economic reforms which I have discussed above, we have also made inroads on the political front. Our political reforms remain focused on creating a just and fair society where minority views are recognized and the voices of the vulnerable in our society are also heard. Last year I also outlined the Road Map formulated by the Govern- ment geared towards setting the framework for the achievement of sustainable democracy, good and just governance, socio-economic development and national unity. This 5-year plan, which is in place, is founded on the basis of the Peoples Charter for Change Peace and Progress—a platform which has been set for political and social reforms, and is the fruit of a consultation process including the private sector, civil society and the Government. Also important is the Gov- ernment’s Strategic Framework for Change, a mandate for the Gov- ernment to ensure that true democratic, non-communal, equal suf- frage based elections for parliamentary representation are held by September 2014. So, our political roadmap is very clear, though some countries continue to demand that we hold early elections without first having to address the basic fundamentals that breed racism, corruption, poor governance and gross mismanagement in our society. To ignore these practices and expedite democratic elections as some are demanding at this juncture would be recipe for further disasters. We are seeing positive changes. I hope that the international community, including the Fund and the World Bank, will also acknowledge the progress being made. More critically, that they re-engage and partner with us to realize our true potential, for the betterment of our people. In our bid to rebuild the economy and restore it to a sustainable growth level, we have reformed the financial system, continuing to wean corrupt and racial policies, building up strong governance and

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reforming the civil service. Additionally, we have facilitated the establishment of micro, small and medium enterprises schemes and have promoted financial inclusion so that the rural population would benefit from the extension of financial services to these areas. Moreover, we have strengthened our customs and tax department, improved the public financial management and reformed the public sector enterprises. We have also pursued structural reforms in areas that have stifled our economic performance over the past years. Begin- ning in 2012, we will move on reforms in the political arena by initiat- ing discussions for a new constitution based on common and equal citi- zenry, eliminating ethnic based voting, to be ready a year prior to the planned elections. As I have noted earlier our nation is currently pursuing reforms that are unprecedented in our history. The current administration has taken bold measures that have been ignored for so long, resulting in stunted economic performance. Despite the obstacles, we have pressed on and are committed to implementing all the necessary changes that will bring about sustainable economic growth and a truly democratic society for our people and our future generations. It is noteworthy, that most of the reforms that we are implementing now are in line with recommendations of previous missions. Some of the results will be witnessed in the medium term. Re-engagement will expedite some of these crucial reforms. In this light, I call on the Fund and the World Bank to look beyond the political landscape and to continue to engage with Fiji in bringing about the much needed changes that will lift the standard of living for our people. I applaud the Fund in engaging with Fiji in our request for an SBA facility. It is our view that the SBA would greatly enhance the confidence in our economy as we move ahead in reforming the financial system, reorganizing the public service with strong focus on good governance and transforming the political system to ensure that bad governance will be a thing of the past. Before I conclude, I wish to accord our sincere appreciation to the Fund for the Technical Assistance Fiji continues to receive, as well as the work done by the IMF Pacific Technical Assistance Centre in Suva, particularly the recent appointment of the new Resident Rep for the Pacific. I also thank the Bank for the assistance provided through the World Bank Regional Office in Sydney, to Fiji and its Pacific Island neighbors. Finally, I wish both institutions every success in their future endeavors and look forward to their continued engagement.

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FINLAND: JYRKI KATAINEN Governor of the Bank (on behalf of the Nordic and Baltic Countries)

I am honoured to be able to deliver this message to fellow Gover- nors and to Bank management and staff on behalf of the Nordic and Baltic constituency at the World Bank Group. In April the Development Committee endorsed three important political decisions concerning the World Bank Group: • First, we endorsed post crisis directions for the Bank Group; • Second, we agreed to strengthen the IBRD’s capital base to ensure that the institution has the necessary resources to support its member countries on the road to recovery after the credit crisis; and • Third, we reformed the Bank’s governance by realigning voice and enhancing the participation for the developing and transition countries to reflect the evolving changes in the world economy. Now is the time for the Management to implement the agreed strategic directions. And for Governors to formally complete the ratification processes necessary to ensure the timely implementation of the decisions on capital and governance. Moreover, as we speak work is ongoing in replenishing the IDA resources. With only five years to achieve the jointly agreed Millen- nium Development Goals, a successful completion of these negotiations is vital in supporting the prospects for the poorest countries in the post crisis world. We encourage all current, and especially the new and emerging donors to play their part in making this replenishment round successful. Increased voice means increased responsibility. These are important decisions for the World Bank Group. How- ever, they only provide the basis for the Bank’s work. At first sight, the outlook for the emerging markets in particular looks bright. They were the first to come out of the crisis and they have grown at a fast pace for the past year. In low income countries growth has also returned to healthy levels after the slowdown in 2009. Sub- Saharan Africa is growing at the same rate as the entire developing world ( excluding China and India ( for the first time in 30 years. How- ever, as the income level in Africa is low, the development needs in the continent are still enormous. The recovery in advanced countries has been weaker and now we are seeing signs that growth may be low for some time. This would support the view that in the world economy we are seeing a structural

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change towards the emerging markets, and to developing countries more broadly. To quote President Zoellick, we should start seeing the world as a “multi-polar growth world”. In broad terms, such secular change has been taking place for some time already. As longer historical perspective reveals, centres of economic dynamism have not been and are not static. A word of caution may however be in order in the post-crisis world. Transition to a “new normal” may be bumpy. Recent volatility in financial and commodity markets can remain high for some time. Asset bubbles only seem like bubbles once they have burst. Increasing food prices are again causing social unrest in some countries. And climate change is posing enormous challenges especially to many of the poorest developing countries. No country is insulated from the rest. Trouble from one country can quickly spread to other countries. The World Bank Group is there to help its clients navigate through these uncertain times. In performing this task effectively the Bank needs to continuously learn from the past and adjust to new developments. This also applies to our Spring Meeting decisions on strategic directions, on capital and on governance. Moreover, daily challenges for the Bank staff remain as before— how to deliver tangible development impact at the country level. Be it through project related investment lending or through budget support, policy dialogue or global and regional programs. The objective remains to reduce poverty through growth and productivity improvements. Now concerns about climate change have rightly broadened attention to the adaptation and mitigation agendas that cannot be fully sepa- rated from development. The Bank deals with multidimensional challenges—often requiring comprehensive approaches for addressing them. At the same time, the institution can risk blurring its mandate and spreading too thinly. To remain effective, the Bank still needs to prioritize and focus. Such focus areas can vary between client countries based on their own priorities. Sometimes less is more. Some issues can be left to others to address based on country level division of labour among donors. This is essential also for the overall aid effectiveness. Although the Bank is rightly seen as the premier development institution in the world, it is not the only game in town. As any other institution it needs to continuously make its case and focus on the value added it brings. This can be challenging. The bottom line for the World Bank Group is defined by maximizing public goods, not private profits. This means not only that the projects and programs that the Bank finances

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have to be financially sound, but that they also need to take into account their broader economic, social and environmental impacts. Designing practical, concrete metrics for setting objectives and for tracking performance especially at the corporate level is difficult for an institution like the World Bank Group. Much more difficult than for a profit-maximizing company. Still such results metrics—for instance on job creation, service provision and productivity trends— are needed. Indeed, if we can’t measure whether we have been successful or not in our intervention, we will never be able to tell whether such an intervention is good value for money. This is important for both development results and credibility of the institution. The IFC has shown leadership in this area through its development impact tracking system and Performance Standards, which not only guide the IFC’s approach, but also form the basis for the broader Equator Principles. And IDA has also been at the forefront in this area and is currently further refining its Results Measurement Sys- tem. We welcome such leadership and encourage their application more broadly.

We live in a dynamic world. This also applies to the World Bank Group. Borrowing countries grow, and eventually graduate and take their place as non-borrowing countries. Most of our constituency countries were once borrowing clients of the Bank. Now, all of us are IDA donors helping to mobilize scarce resources for the poorest part of the membership. Dynamism and graduation are at the heart of the Bank’s mission. Details of the pace of transition from one status to another may be subject to cyclical developments, and even diverging interpre- tations, but the overall principle is clear to all. Dynamism and graduation go hand in hand with increased responsibility. The logical conclusion from this dynamism also implies that the end objective for the institution is to make it redundant. But we are still very far away from such a point in time. In the meanwhile, the World Bank Group provides the international community one of its most valuable assets in trying to find solutions to some of the most difficult development challenges we face. No institution is without its problems and the Bank is no exception. But in our view the Bank’s overall track record remains impressive and recent decisions on capital is a vote of confidence to the institution. Indeed, as a conclusion, I would like to extend, on behalf of the Nordic and Baltic countries, our constituency’s gratitude to the Bank’s management and staff for their hard work during the past year.

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FRANCE: CHRISTINE LAGARDE Governor of the Bank and the Fund

At no time since the Great Depression of the nineteen-thirties has the world seen anything like the global crisis we have just experienced, a crisis affecting physical, energy, real estate and financial markets. But the difference, this time around, is that by working together, we made sure that concerted action would win out over protectionism and free-riding. To put it in more visual terms, we succeeded in avoiding a return to those long lines of unprotected jobless workers, so vividly portrayed by the Franklin D. Roosevelt Memorial just a few hundred yards from here. Along with the G20, the international financial institutions have played a vital role in getting us out of the crisis, validating the insights of Keynes nearly 66 years after the Bretton Woods Conference. With the IMF committing more than 150 billion euros and the World Bank more than 100 billion euros over a two-year period, an essential safety net has been provided-essential to macro-economic balance and social stability in the recipient countries, essential to the entire international community as well. 2010 should be considered as a pivotal year for the Bretton Woods institutions. Their effective response to cascading crises has confirmed the importance of their role, while their current task is to support a recovery that is rife with uncertainty. Endowed with additional resources (1), both the International Monetary Fund and the World Bank must now go on modernizing their instruments and operational policies (2), complete their governance reform (3), and take part in outlining a more stable economic order, based on sustainable, balanced growth and collective discipline (4).

1. Honor the financial commitments made during the crisis

The response of the IMF and the World Bank to cascading crises was made possible by a commitment to provide both institutions with greatly expanded resources, despite the massive fiscal consolidation drive under way across the industrialized world. The time has come to honor those commitments: • Reformed, expanded New Arrangements to Borrow should lead to a tripling of IMF resources. Last spring, France took the first step, voting for a contribution of more than 18 billion SDRs, and subsequently providing over 2 billion US dollars to the IMF’s concessional facilities for low-income countries. I now call on all NAB participants to meet their commitments.

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• The General Capital Increase should enable the IBRD to implement a determined counter-cyclical policy for the benefit of all its members, without weakening its future lending ability. The chief benefici- aries should be the most vulnerable countries, notably in Africa: this is the whole point of the intra-group transfers to IDA. But such an outcome will require a prompt subscription of the capital increase and a substantial IDA replenishment, made possible notably by emerging-country donors, notably those at high-income levels, living up to their duty. France has already included its commitments in the budget for 2011.

2. Go on modernizing their instruments and operational policies

In response to the provision of additional resources, the Bretton Woods institutions should continue with their efforts to manage and spend those resources more effectively, adjusting to the needs of their members while delivering on their mandate. That means being more effective: • The IMF has changed considerably in this respect, and our work last year on reviewing its mandate has paid off. To start with, the Fund has continually adapted its lending instruments and enhanced its crisis prevention capacity. The creation of the Flexible Credit Line is a success, as illustrated by the positive track record of the benefiting countries, and this instrument has been made even more attractive recently. At the same time, the recently created Precautionary Credit Line will help the Fund tailor its offer more appropriately to the differentiated profiles of its members. In addition, the IMF has strengthened its surveillance tools, above all the ones pertaining to the financial industry. I wholeheartedly support the five-year review to be required of the 25 most “systemic” economies. And I applaud the plan to introduce “spillover reports,” which will help eliminate a gap in how the Fund carries out its mandate. • Turning now to the World Bank, the new Crisis Response Window introduced within IDA, a change fervently backed by France, likewise represents real progress. It will give the Bank greater flexibility to deal with the kinds of shocks that the most vulnerable countries are most exposed to and correct an allocation process too heavily focused on one specific governance indicator. The key challenge for the entire World Bank Group today is to target resource allocation more effectively on the basis of three priorities: focus on the most vulnerable countries; assist the most advanced emerging countries in graduating; and help promote infra-

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structure, the private sector and regional integration—three prerequisites to sustainable growth. Being more effective was the point I stressed. But the Bretton Woods institutions also need to be more efficient. • The exceptional shareholder support it has received has created efficiency imperative for the World Bank. First of all, the Bank must make full use of the funds contributed and ensure that the sub- scribed capital is paid for in local currency. Second of all, the Bank has to preserve the equity provided by its shareholders while carry- ing out the loan pricing reform, which was the prerequisite for the General Capital Increase. Last of all, it is the duty of the Bank to manage its resources in an exemplary fashion through tighter control over spending, particularly on compensation, sensible management of the decentralization process and an expanded guarantee program.

3. Complete their governance reform

These efforts to be more effective and more efficient will not succeed unless they are underpinned by reformed governance structures: • A first step was taken at the World Bank last April. The resulting ad hoc balance gives even greater voice to the emerging and developing countries. For this reason, I strongly encourage the countries that have not yet ratified Phase 1 of the reform to do so as soon as possible to avoid penalizing the poorest countries, the ones with the least representation. I expect the countries that benefit from Phase 2 of the reform to be fully cognizant of the related responsibilities and to make sure the World Bank upholds its commitment to the most vulnerable population groups. • I am convinced that an agreement can be reached at the IMF if everyone shoulders his or her share of the load and shows willingness to compromise. To accomplish that by the end of the year and in accordance with the clear commitment our leaders took at Pitts- burgh, we now have to take a reasonable approach. But let’s be clear about one thing. To be acceptable to everyone, quota reform must be fair. As I have said, France is prepared to do its part to bring about greater representation for dynamic emerging countries among the Fund’s shareholders. What France and Europe are not prepared to do is to serve as an “adjustment variable” in an arrangement that disregards economic realities, that fails to establish principles that apply to all and that all apply. To put it bluntly, the reform cannot and must not generate new imbalances by turning the over-represented countries of today into the under-represented countries of tomorrow.

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In addition, quota reform is not all there is to governance reform. To enhance the long-term legitimacy, credibility and efficiency of the Fund, we must make sure that the Governors be more involved with IMF governance and operations. That, in my opinion, means granting the IMFC decision-making powers. • Last but not least, both the IMF and the World Bank need to look more like their members; they need a proactive approach to staff and executive diversity. This is obviously the issue underlying the selection of the World Bank President and of the IMF Managing Director regardless of nationality. It is also the issue behind the concern for a wider variety of aca- demic backgrounds. It should be recalled that the Washington Con- sensus that has drawn so much fire was not the product of one nation; it came out of a single school of thought. Only a determined attitude in the future will protect us from new fads that consider one way of “doing business” the measure of all things.

4. Take part in outlining a more stable economic order, based on sustainable, balanced growth and collective discipline

In conclusion, I would like to emphasize the unique contribution of the IMF and the World Bank to clarifying our economic policy options and their ability to follow through immediately and effectively on major multilateral commitments. The Bretton Woods institutions should leverage those assets to play a leading role in outlining a more stable economic order, based on sustainable, balanced growth and collective discipline. To meet the expanded responsibilities it has been given, the IMF will have to make further changes in three main areas. The first one involves devising a mechanism for addressing systemic crises that would give nation-States enhanced protection against volatile capital flows. The second one involves greater monetary and financial surveillance by the Fund, especially now that global imbalances are increasing once again. The third and last area involves encouraging gradual capital account liberalization in a way that responds to the risks created by volatile capital flows. In 2011, France will have additional responsibility for the international agenda as the holder of the G20 presidency. We in France know that we can count on the expertise, the commitment and the legitimacy of the IMF and the World Bank as we take up new projects-projects that have been bogged down for too long, and yet that are crucial to global stability and prosperity. Although this obviously isn’t an exhaustive list, the following challenges immediately come to mind:

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• Strengthening the international monetary system, because it currently fails to respond to the need for diversification and for macroeconomic policy coordination in a multipolar world. • Ensuring market stability for commodities, above all agricultural commodities, because volatility in this case is a serious issue for our economies and our citizens. • Promoting tax, labor and environmental standards, because global growth cannot be sustainable or attuned to individual rights without them. • Tackling non-cooperative jurisdictions, whose free-rider behavior defies international coordination. France intends to pursue ambitious goals during its G20 presidency. And as you have undoubtedly guessed, my hope is that the IMF and the World Bank will share our ambition in 2011.

GERMANY: DIRK NIEBEL Governor of the Bank

At the UN Development Summit in New York we together defined a leitmotif for the next few years: We want to keep our promises and, at the same time, development cooperation must be made more effective! Ten years on from their adoption, the Millennium Declaration and the Millennium Development Goals (MDGs) continue to be the yard- stick for international development policy. In view of that, this Annual Meeting must also send a clear message that, despite increasing global challenges, we will not allow achievement of the Millennium Development Goals to be jeopardised. On the contrary, we must further develop our international partnership, with modern development policy playing a key role. This must include making the concrete contribution made by the international financial institutions to supporting the global agenda for poverty reduction even clearer in the future. The international community must prove that it is capable not only of instigating measures to address the immediate fallout of any crisis but also of simultaneously taking precautions against future crises. What is important is that we draw on the lessons of past crises when determining the direction to be taken by the international financial institutions in the future. The long-term impacts of the financial and economic crisis have not yet been mitigated. However, the crisis has shown that countries with robust spending on infrastructure and the social sector are more resistant. The fiscal space that countries have to react flexibly to crises with counter-cyclical measures is of key importance. This is where the international financial institutions need to step in so as to give partner

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countries support that is appropriate for their specific context. We need new approaches with which to curb and cushion global risks based on the international networking of markets. The supranational global challenges of the past few years make it clear that freedom, prosperity and security can only be secured through effective international cooperation. International development policy is therefore an expression of shared responsibility, thus making it a form of global structural policy. Greater efficiency and effectiveness in development cooperation— that will become increasingly crucial in future. Especially when budgets are tight, we will all have to be judged by whether we manage to achieve maximum success with the scarce funds available. That means, crucially, a greater focus on results: the allocation of funds must increasingly be tied to development results, thus also encouraging even greater ownership on the part of partner governments. Therefore the World Bank must also make more use of results-based instruments in the future. Effectiveness equally means the long-term planning of resources for the IBRD and IDA. As a first step in the wake of the crisis it was important, therefore, to ensure that the IBRD will have the resources it needs in the long term, so that it can continue providing the necessary funds and suitable tools for sustainable development. We must make it clear at this Annual Meeting that it is just as important to ensure a solid financial basis for IDA and the poorest countries. A successful reform process and comprehensive modernisation of the governance structure of the international financial institutions is a central step in the direction of the vision of a global knowledge bank of the future that is more effective, more transparent and more efficient. The shareholders have the responsibility to push forward with this process of reform in a courageous but measured way. They must have the courage to also support the Bank in any new avenues it pursues. And they must be able to judge with good measure what results we can expect within just a short period. However, greater effectiveness also means not only that developing countries and their concerns are taken seriously but that they take ownership of their own development. Good governance, decentralisa- tion, effective national taxation systems and the rule of law are central to strengthening that ownership.

INDIA: PRANAB MUKHERJEE Governor of the Bank and the Fund

Recent developments in the global economy have weakened somewhat the optimism that surrounded the rebound in early 2010. It now

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appears that resumption of self-sustaining growth may be more sluggish and protracted than anticipated. In spite of some improvement in financial conditions, risks to global financial stability have increased in the wake of the sovereign debt turbulence. There are dangers of adverse feedback loops from the financial sector to the real sectors, with adverse implications for employment and economic activity. Repairing the financial system remains an unfinished agenda. Against this evolving outlook, we must be in readiness to undertake strong and immediate offsetting policy responses. Fiscal consolidation needs to be consistent with the macroeconomic and financial situation. Coordinat- ing policy actions globally will strengthen our response. The impact of the crisis is going to last for decades beyond the crisis. It is a great cause of concern that an additional 64 million people have been pushed into poverty. The achievement of the MDGs has certainly suffered a setback. In this context, we need an ambitious IDA16 replenishment and I urge all IDA donors to contribute to make this possible.

The IMF

We are at a crucial stage of the reform exercise in the Fund. The revised surveillance mandate must now be implemented effectively to ensure that surveillance remains focused on the dangers to global macroeconomic stability wherever they may lie, while the revamped lending framework should enable countries to seek assistance early in the crisis cycle. Further and more far-reaching changes, particularly in the surveillance mandate, are best carried out through an updating of the Articles of Agreement. These changes can enhance the Fund’s credibility, only if, bold and forward looking quota and governance changes are implemented, which will restore the Fund’s legitimacy. The quota review should ensure a forward looking realignment of quota shares. The burden of the quota shift to dynamic emerging markets and developing countries has to be borne primarily by advanced economies and I reiterate my call for a shift of 5 to 6 per cent in quota share from advanced countries to developing countries. The flawed quota formula cannot deliver such a shift and should be revised in a separate time-bound pro- grammed. A substantial ad hoc allocation based on global PPP-GDP shares has to form part of the solution to ensure that the Fund’s quota shares better reflect global economic realities. I would urge all my colleagues to ensure that the ratification of the April 2008 package of quota reforms in the Fund is completed without further delay. We would welcome the redistribution of chairs in the Executive Board on a more equitable basis amongst the regions of the world

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while ensuring that the representation of EMDCs is preserved. Greater political engagement of Ministers in IMF related issues is best achieved through improvements in the functioning of the IMFC. The top managerial positions in the Fund and the Bank should be filled through an open, merit-based selection process without unwritten national restrictions.

The World Bank

We need more resources to restore growth. It is worrying that the Bank’s annual lending will fall steeply from next year. Unfortunately, there is no headroom for a crisis response either at IBRD or IFC. We need strong multilateral buffers to face future crises and help maintain development expenditures. We need to further expand the Bank’s lending capacity through innovative measures. The IFC needs a radical relook at its overall strategy. The Bank needs to continue to maintain its core focus on poverty alleviation. Over-burdening the Bank with multiple goals reduces its efficacy in meeting core objectives. Climate change is one of the foremost developmental challenges of the 21st century. Keeping in mind that affordable energy is crucial for fighting poverty, the Bank should address climate change to the extent it impacts on development options and constrains opportunities of growth, and refrain from imposing mitigation responsibilities. The Bank also needs to refocus on agriculture and infrastructure to contribute more effectively to global food security and economic prosperity. We need a Bank Group that continues to be a storehouse of knowledge and resources ready to be put to use to meet the development challenges that lie ahead. We took momentous decisions at the last meeting to restructure the Bank’s shareholding. There are areas, where we still need to work. Work should begin on developing a Bank specific formula that leads to parity for DTCs. Both the Fund and the Bank have played a critical role in helping their members respond to the crisis and craft their further policy response. We look forward to the further measures to enhance their role in the international financial architecture.

INDONESIA: AGUS D.W. MARTOWARDOJO Governor of the Bank

Our gathering this year is taking place against a backdrop of an uncertain global economic situation. Many advanced economies are facing large fiscal deficits and high debt levels, there are currency con-

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cerns, and we are experiencing a slowing in global demand. These issues, and others possibly lying in wait on the periphery, pose serious challenges to our economic planners. Developing economies have the added concern of competing with advanced economies for the limited amount of commercial funds that are available globally. The World Bank and IMF have been responsive and innovative with their financial facilities over the crisis period. On behalf of the Indonesian government, I express our appreciation of the Bank and the Fund’s staff for their efforts, and for the leadership of President Zoellick and Managing Director Strauss-Kahn. We urge that, at this economic crossroad, the Bank and the Fund continue to seize the initiative with innovative financial facilities that meet the changing needs on the members. The best way to ensure the world comes through this crisis is to ensure economic growth. Indonesia’s economy has proven to be resilient against external shocks. Our comprehensive structural, financial and bureaucratic reforms, our high levels of international coordination and prudent policies, and our targeted fiscal stimulus and infrastructure spending, have combined to enhance our resiliency. Indonesia is expecting 6% GDP growth in 2010 and we are hopeful of 6.4% to 6.8% GDP growth in 2011. The World Bank was an integral component of our successful strategy, and when timeliness was everything, the Bank proved it could move swiftly. World Bank lending helped Indonesia’s efforts to guarantee positive market perceptions of our economy over the crisis period. The Fund’s Flexible Credit Line was a welcome development. Enhancing the Fund’s capacity to address financial crisis as part of coordinated regional and global efforts should continue to be treated as a priority. We welcome the World Bank Group’s General and Selective Capital Increase and Selective Increase totaling US$ 89 billion to strengthen its capital. The Bank’s stronger capital position would leave it positioned better to provide quick responses to tackle financial crisis and key development concerns. Further, we look forward to the IMF’s 14th General Quota Review which addresses dynamic under-represented developing economies. We would welcome the implementation of the G20 Pittsburgh and Toronto Leaders’ Declaration regarding the 5% shift of quota from over represented to under represented countries. Globally, the past crisis has consigned an enormous number of people to poverty. This was clearly an unwelcome development, particularly as we are all striving to Millennium Development Goals (MDGs) by 2015. The International Development Association (IDA) has a unique and critical role in helping underprivileged people access human basic needs, including health and education. We must ensure

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that the IDA can sustain and enhance its efforts to mobilize funding for developing countries. We welcome the commitment from the Bank to mobilize substantial new investments to help developing countries achieve the MDGs, and we agree that these investments should be inclusive and sustainable. We need to ensure the poor benefit from these investments and, more importantly, that these investments offer support to allow them to permanently escape from poverty. We would urge the Bank to continue with its focus on MDGs. Key priorities for Indonesia include ensuring local governments can provide clean water and sanitation access, and reducing the maternal mortality rate and malnutrition in children under five. The Indonesian Government has undertaken some policy reforms to accelerate infrastructure development by addressing supply bottlenecks, including enhancing competitiveness. Indonesia’s Domestic Connectivity Initiative is a priority investment area. We would value Bank support with infrastructure technical assistance and investments in roads, bridges, railways, ports, transportation terminals and other such projects. In the aftermath of global liquidity problems, we need to ensure the availability of sufficient and cost effective financing for implementing development agendas. For the post crisis strategy, we encourage the Bank to enhance its role, knowledge sharing, and financing capacity in support of the development agenda of emerging and developing economies. Indonesia values the Bank’s climate change support, and Indonesia is making good use of Bank’s climate finance instruments that have been established by development partners, in collaboration with UN and multilateral agencies. This includes a Climate Change Program Loan, the Clean Technology Fund, and the Forest Investment Fund. Indonesia is applying the financing to investments in geothermal power, in policy reforms related to mitigation and adaptation, and on approaches to provide incentives to local and provincial governments to reduce green house emissions. For the ‘Reducing Emissions from Deforestation and Forest Degradation (REDD) Plus’ program, Indonesia would value more of the Bank’s expertise in the area of policy capacity building and donor synchronization, and on issues such as land use. We encourage the Bank to continue to be a leader on climate change financing issues. The changing world demands the Bank and the Fund modernize governance procedures and to work with decentralized decision making processes to deliver effective service to member countries. We note the Bank has completed its second round of reforms, and by the Spring Meeting 2011 we are expecting to see selection of the President based

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on merit and performance criteria. We encourage the Bank and the Fund to move forward with reform efforts and to ensure that both organizations are at the vanguard of international best practice. In closing, Indonesia is committed to working with fellow members to ensure that the World Bank Group and the IMF are partners that can help us meet the needs of achieving strong, sustainable and equitable economic growth.

IRAN: SEYED SHAMSEDDIN HOSSEINI Governor of the Bank and the Fund

In the name of God, the Compassionate, the Merciful I am delighted to deliver my speech at the World Bank-IMF Annual Meetings, 2010. Global Economy is still grappling with slowdown of growth and uncertainty about future. Theoretical foundation of global economy and efficiency of the financial and monetary architecture and its institutions are being challenged. Financial and monetary system, as the main artery for circulation of liquidity has obviously showed its vulnerability and instability and many of the elites in this field acknowledges the structural weakness of the system which ignores the relation and correlation between the real sector and economic activity with the financial sector. In contrast, the strong Islamic economic & banking system foundations, being based on the value of work and production, draws the attention of international banks and institutions, more than ever. Although this issue is in the agenda of Bretton-Woods institutions, the important point is to move in a way that financial products of WB and IMF, being more compatible with Islamic Finance and Banking, are made available to the country members in near future. Islamic Republic of Iran, a founding member of the World Bank and IMF, supports the current Enhancing Voice Program, believing that the role and share of developing and emerging countries in drawing up the policies of the Bretton Woods institutions should be more pronounce than what has been envisaged the program, while we believe that the action taken by up to now, are steps in right direction. In fact that my country pronounced readiness in full participation in the Voice structure by expressing willingness to be a donor to IDA16, is in this direction. We believe the key issue is the role and function of the institutions such as WB and IMF, which seemingly, we are members of. You are all aware of the Articles of Agreement of IBRD and IMF and the aims of the establishment of these two institutions, but how much do we find

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their functions in line with Articles of Agreement, efficiency, fairness, equality and principals such as corporate governance? How much of the managerial direction is towards development and welfare and on the other side; how much is dominated by the policies of major shareholders. To what extent the rights of minority shareholders are exer- cised. What’s the role of majority of countries in the management? Isn’t it but the fact that the process of distribution of shares and capital is in a way that blocks any fair management. Why the issue of enhancing their voting power of developing countries is so slow and erosive? And when does the time come that the managing director of IMF and president of WB be from countries other than US and Europe? As the representative of my beloved nation and country, the Islamic republic of Iran, and also as a member country, I have objections against the discriminatory behavior of the WB management, which is contradictory to the Articles of Agreement. Since 2005, negotiations with the management of the Bank for preparing our CAS have been postponed for non-technical reasons, which mean depriving a member country from developmental resources of the Bank. The shocking point is that, based on enquiry made from the legal department of the WB, the developmental and humanitarian projects are excluded from the imposed sanctions on Iran while in no section of the legal opinion reasons can be found to reduce relations and not financing such new projects. But the top management of the Bank, referring to the imposed sanctions by the Security Council and negative opinion of some countries, urges on not putting forward our CAS to the EDs Board, while the majority of seat holders in the executive Board, in bilateral meetings with me, directly or indirectly, agree with submitting our CAS to the board. My core question is whether this behavior is based upon good governance or political observations? Based on clause 10 of section 4 of the Articles of Agreement, the Bank is forbidden to have any kind of interference with the political affairs of the member countries nor can be influenced by the political inclination of members countries, as well as the fact that based on clause 4 section 3 of the Articles of Agreement, neither of the terms and conditions for getting loans were breached by Iran. What excuses can be made for so many contradictions of practices with the rules and regulations? What are the bank’s management answers to the questions of international community and great people of Iran? On behalf of my government, I request the Bank management to openly put the issue of the CAS of Iran in the agenda to be discussed

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in the first session of executive directors meeting and to investigate our rightly requests which are based on Articles of Agreement and then announce the results to my respective government. Concerning the existing projects, unfortunately I should call your attention to the issue that since 3 months ago, no response has been given from the Bank side, regarding withdrawal applications of the projects. The bank has actually stopped disbursement, so all the projects suffered loss, while the bank charges interest and other fees. This issue solely questions the bank’s developmental targets. The story of UN Security Council resolutions against Iran’s financial system is a painful story, which cannot be explained here. That a few states for keeping their monopoly in the science and new technology, the base of economic progress in today and future, try to stop our nation from economic and scientific progress, by financial tightening, is quite obvious. But that the management of the bank even exceeds the unjust resolutions and disregards the rights, is unfair, inappropriate and even more a damage to the Articles of Agreement of the Bank. Islamic Republic of Iran is very seriously moving on the track of progress in science, technology and economy, having peace and justice on top of its agenda and following cleanness and justice on all dimen- sions, including monetary and financial aspects. In Iran since several years ago based on Sharia’ of Islam, money laundering has been regarded as a crime, and in recent years having approved and made effective money laundering law, completed by its bylaws, we fight more openly against these crimes. In order to complete previous attempts, the government submitted the bill for combating Financing Terrorism to the Parliament. Now the legal authority has been formed. Regarding what I said the pressure on the Iranian banks and financial institutions are politically nurtured, while our expectations from institutions such as WB and IMF is to remain loyal and faithful to the article of agreement and professional ethics.

IRAQ: BAKER J. AL-ZUBAIDY Governor of the Bank on behalf of Arab Governors (Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen)

It is a great pleasure for me to deliver this year’s Arab Group’s joint speech on behalf of Arab Group Governors at the International Mone- tary Fund (IMF) and World Bank (WB) Annual Meetings. As you know, the global financial and economic crisis had negative impacts in 2009 on our Arab region which manifested themselves in

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the decline of growth rates. However, recovery is underway in the region as growth rates improved this year and are expected to continue improving in 2011 and 2012, despite some signs of deterioration in the international environment. This crisis and its consequences such as the European debt crisis and the deterioration of Euro exchange rates had wide ranging impacts on the economies of our region. These impacts varied depending on the initial conditions prevalent at the outset of the crisis, the basic sources, as well as, means through which the crisis impacts affected our region’s economies such as: the financial sector, oil prices, and balances of payments. Such impacts projected themselves on: trade flows, direct foreign investments, and remittances from Arab expatriates. However, the credibility of policies adopted and availability of large amounts of accumulated reserves in addition to other assets enabled countries in the region to respond quickly through stimulus packages and programs at the monetary and financial policy levels. This helped to strengthen the speed of recovery and growth. We fully realize that enhancing economic growth with a view to creating job opportunities requires acceleration of reform steps in our countries, particularly, the improvement of investment climate and trade liberalization. In this context, we would like to emphasize the commitment of our Arab countries to continue economic and financial reforms and to enhance opportunities for integration into the global economy. Moreover, we would like to note the positive role played by sovereign funds in enhancing global financial stability, as well as, the measures recently taken by Arab funds to enhance transparency in accordance with the latest international directions and principles.

International Monetary Fund

Facilities Provided by IMF: The Arab Group welcomes the effective role played by IMF to achieve global monetary and financial stability, particularly the quick response to member-country needs in light of the impacts of the global financial crisis. Moreover, our Group values efforts and resolutions aimed at enhancing and upgrading credit facilities provided by IMF, including prudential facilities characterized by the flexibility needed to meet member-country needs in avoiding crises. In this respect, the Group stresses the need for full equality among member countries in benefitting from all IMF facilities including the new ones. IMF Oversight: The Arab Group reiterates the call for IMF to enhance effective oversight of developed countries and financial centers that influence the global economy and financial system. Moreover,

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the Arab Group reiterates its request for reviewing the decision to charge fees for technical support provided by IMF. That decision was temporarily suspended in 2009. Such fees may deny developing countries the technical assistance they need.

World Bank Group (WBG)

Activities of World Bank and its Institutions: the Arab Group welcomes the active role played by the WB over the past year as well as its quick and effective response to developing country needs, be it at the level of scaling up financial support through loans and credits or the provision of guarantees and technical assistance to member countries, including the private sector. Consequently, we appreciate the measures taken this year to ensure continued WB ability to meet developing countries’ needs, including agreement to implement a general capital increase. However, this does not prevent concerns that such measures might have been unbalanced, particularly in respect of funding allocations of a number of developing countries still in need of World Bank financial support. Furthermore, we highlight the need for a continued focus on the Bank’s important role in growth enhancement and poverty reduction. Our Arab countries welcome the adoption by the WB Board of Directors of the Post Crisis Directions in the wake of the economic crisis, which emphasizes the priority of poverty reduction in developing and least developed countries in the medium term, as well as, helping such countries to attain the Millennium Development Goals (MDGs) in the area of social development, among others. Moreover, we call on the WBG to continue according priority to supporting growth, particularly pro job growth whether through financial assistance and guarantees for public and private sectors or focusing on institutional support as well as technical assistance. We also stress the need for the WB to maintain the pace of engagement with middle income countries, especially, those facing challenges in poverty rates, infrastructure and services. As far as the overall needs of our Arab countries are concerned, we reiterate the need for continued contributions by all WB institutions in facing the sectoral challenges related to water resources and power, providing additional energy sources, especially, in countries suffering from energy shortages and those most impacted by drought and deser- tification problems. We also call on the WB to participate in projects designed to improve investment infrastructure and support the private sector, particularly small and medium enterprises. We also emphasize the WBG’s role in expanding investment cooperation aspects for countries of the region—inside and outside the region—especially in the context of cooperation between developing countries or the so-called

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south/south cooperation. We also emphasize the need for the WB to finance projects designed to provide social services to residents, particularly those contributing to acceleration of meeting Millennium Devel- opment Goals (MDGs) obligations by our countries. Arab World Initiative: In this respect, we welcome again the Arab World Initiative announced by the WB President among the six themes he adopted upon assuming his position. Yet, we see little tangible and clear progress due to the need for more clarity in the focus and the obvious the lack of an implementation mechanism during the period since that announcement. Accordingly, we would like to request the following, for discussions during the upcoming Spring Meetings: • A comprehensive proposal on the AWI that includes well defined development objectives, the various elements of the plan, their inter- linkages, as well as, clearly elaborated expected results • A time bound implementation plan • An estimate of the additional financial and human resources needed and eventual allocation of these resources • Identification of the department that will be responsible and accountable for implementing the AWI • Clearly defined results framework and monitoring and evaluation mechanism with regular reporting The economic and strategic importance of the Arab region makes it an inevitable necessity to implement the Arab World Initiative not only for the Arab World but beyond it. Consequently, we stress the importance of executing the above steps to ensure tangible progress in implementing these projects and programs and to prevent the initiative from staying captive of a theoretical framework outside the realm of implementation. Our Arab group stresses the importance of according appropriate priority to supporting economic and financial integration among Arab countries. The purpose is to take advantage of opportunities that crises may give rise to, particularly in the areas of achieving sufficiency and food security. In this connection, we call on WB to adopt development as well as bilateral and regional integration projects, especially in the areas of agriculture and trade as well as infrastructure projects that need to be accorded necessary priority. We also stress the importance of not excluding any Arab country from benefitting from WB projects and activities, international initiatives undertaken through the WB, whether in the framework of the Arab World Initiative or loans and technical assistance. We note that currently a number of countries in our region are excluded from receiving WB commitments and financial aid.

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Human Resource Development in the Arab Region

Our Arab group stresses the importance of human resource development and cadre qualifying as a major priority for the countries in our region. We call upon IMF and WB to give more importance to programs for training and qualifying Arab cadres in the framework of cooperation and active partnership with Arab institutions concerned as well as research and training centers in the region. The purpose will be to maximize benefits and share experiences at all levels.

Millennium Development Goals

The global financial crisis led to a slowdown of progress made towards meeting the Millennium Development Goals, including through direct impact of economic recession and the constraints imposed on financial assistance flows to the private sector. Therefore, we believe that there is a need to double the efforts put forth and the need for an action plan for attaining the MDGs. In this context, we emphasize commitments by our countries to attain MDGs, as well as, the importance of enhancing country ownership of development plans and local capacity to attain the MDGs by 2015. We also stress the need for efforts to improve quality of statistics in order to facilitate monitoring of progress towards attainment of all MDGs.

IMF and WB Governance

We attentively followed the discussions about ongoing reforms to restructure member-country voting rights in order to reach a more equitable representation and voting power for developing and the least developed countries in both IMF and WB. The Arab group is of the view that improving the IMF governance structure is decisively based on restructuring member-country voting quotas, as IMF’s effectiveness and legitimacy require enhancement of developing country participation in IMF decision-making. Moreover, the Arab group is closely monitors ongoing discussions on this subject and calls for more fundamental steps to address imbalances in representation and voice. In this regard, the Arab group stresses that the basic goal of reform should be to transfer no less than 5 percent of total votes from developed to developing country voting rights without weakening the share of any developing country. The Group also stresses the need for—and importance of—enhancing representation of developing countries in the IMF Board of Executive Directors, particularly through increasing the number of chairs allocated to developing countries.

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Further, the Group stresses the importance of effective participation at the level of ministers or central bank governors in the meetings of the International Monetary and Financial Committee. Nevertheless, the Group is opposed to any initiative that may lead to a decreased number of IMF executive directors or the weakening of IMF Executive Board, as this may lead to weakening of IMF itself. In this regard, the Arab Group is of the view that establishing an international monetary and financial council may harm representation of developing countries and accountability of IMF management as well as effectiveness of IMF Board of Executive Directors. The Arab group would like to bring to attention the fact that this proposal (like the previous proposal to establish a ministerial council) met with very limited support. Consequently, the Group is concerned that efforts are still being made to reconsider such a proposal. The Group stresses the need for continued efforts to revitalize the International Monetary and Financial Committee and to enhance its modus operandi. Concerning the WB, we are of the view that the consensus— reached during Developing Committee meetings last April dedicated to addressing imbalances in representation and voice for developing and least developed countries—represents the minimum that our Arab countries merit. Accordingly, we call for taking further steps to address such imbalances and call again for reviewing shares and representation of Arab countries. In another context, the Group reiterates the call for selecting IMF director and WB president as well as members of senior management in both institutions—as of the next recruitment cycle—on the basis of transparent and publicized principles based on competition and qualifi- cations and regardless of nationality.

Arab Nationals in IMF and WB Staff

We call on IMF and WB to address obvious under-representation of Arab country nationals in IMF and WB staff and to enhance and intensify such participation. We call for equitable representation of Arab countries at senior levels in IMF and all positions in both IMF and WB and ask that concerted efforts are exerted to address this issue. This will enhance Arab country participation in the decision making process of the two institutions as in the case of other countries. We would like to take advantage of this opportunity to express appreciation to WB Board of Directors for appointing His Excellency Dr. Mahmoud Mohieldin as Managing Director at the WB.

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Importance of IMF and WB Assistance to Conflict Affected Arab Countries

Our Group calls for increased attention to conflict affected Arab countries, and we recommend flexibility in dealing with these countries: Palestine, the Sudan, Yemen, Iraq, Somalia, etc. Moreover, we reiterate our call for an effective IMF and WB support to Palestine and for allo- cating additional resources needed to address the negative impact of economic blockade imposed on the Palestinian people, as well as, Pales- tine’s membership in the IMF and the WB. We also call on international organizations to take all necessary measures to support the development of the economic system and poverty alleviation in Palestine. In another context, we stress the need for application of equal treatment among countries by including the Sudan in the Heavily Indebted Poor Coun- tries initiative to enable it to benefit from debt relief. We emphasize our support for any action to be initiated by WB or IMF in this connection. In conclusion, Arab countries and their institutions look forward to enhanced close cooperation with IMF and WBG.

IRELAND: BRIAN LENIHAN Governor of the Bank and the Fund

Introduction

I welcome this opportunity to address the IMF—World Bank Annual Meetings on behalf of the Government of Ireland. Although there are now real signs that the international economy has come through the worst of the global financial crisis, the past year has been a particularly difficult one for many people around the world—both in developed and developing countries alike. The global financial crisis has clearly demonstrated how interconnected we are, and as a result, how we share common responsibilities. However, such interconnection has also created new forums and opportunities to find solutions to these problems. The fact that we are here in Washington discussing issues of critical importance to the global economy will go a long way towards increasing our understanding of these challenges, and will ultimately help to guide us along the path of continued recovery and future growth.

IMF Reforms

The issue of reform of the IMF is an urgent one. All members of the Fund have recognised the need to make the institution more

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representative of the world as it looks today, and not the world of yesterday. Reform of the IMF is of crucial importance for building global financial stability and creating sustainable growth; objectives which are in all our interests. Ireland is committed to playing its part in the reform process both as a member of the Fund and the EU. This reform is essential for making the IMF more representative, credible, effective, and ultimately, legitimate.

Irish Economic Developments

Ireland has suffered from recession over the past few years, with GNP declining by around 15 percent from peak. But signs of stabilisation are becoming increasingly evident, and we take encouragement from these. Because of our very flexible and adaptable labour market, we have experienced rapid adjustments in our cost and price competitiveness. This improvement in competitiveness is now bearing fruit—our exports grew at an annual rate of over 7 percent in the second quarter of this year. Imbalances built up during the years of excess are being corrected, and clearly during this correction phase the scope for significant improvements in domestic demand is limited. We must therefore rely on external demand for our growth and this is what we are now seeing. And even though some slowdown is anticipated in our main export markets over the second half of this year, we believe that the substantial competitiveness improvements will continue to stand to us. The most pressing issue for Ireland now is the need to correct the mismatch between what the Government spends and what it takes in by way of taxation revenue each year. In setting the Budget for this year, my priority was to stabilise the deficit, and—excluding one-off issues related to the banking sector—that is what is happening. The next step is to put the deficit on a declining path so as to be below 3 percent of GDP in 2014. I plan to publish a four-year budgetary plan next month detailing the consolidation measures necessary to achieve this. I have also reiterated to my European colleagues the Govern- ment’s determination to reach the agreed deficit threshold within the agree timeframe, and I want to stress this point again today.

Irish Banking Developments

The financial crisis has led to a reassessment of the role of regulation in maintaining financial stability. A wide-ranging reform programme has been underway over the past number of years and new measures have been introduced in more recent times. These measures include the G20 agreement on the need for a coordinated global response to the financial crisis and cover enhanced supervision of the

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financial sector, strengthened prudential rules, and improvements in the overall resilience and structure of the financial system. Similarly, the EU has also introduced proposals on prudential standards for financial institutions as well as the introduction of new legislation on credit rating agencies, alternative investment funds and derivatives, and a European Systemic Risk Board which will provide early warning of systemic risks that may be building up in the financial system. Both the G20 and the EU have agreed that it is essential that existing prudential rules on capital requirements be amended to significantly increase the level of capital in the financial system. Ireland has broadly supported the ambition of these proposals as they will contribute to more resilient financial institutions and will enhance financial stability. In that context, the agreement reached in Basel by the Group of Governors and Heads of supervision of the central banks strikes the right balance between learning the lessons from the financial crisis in requiring better and more liquid capitalization for our banks and recognizing the important role that banks must play in national and global economic recovery. In relation to the situation in Ireland, the Irish Government has moved to address the regulatory failures that were central to the financial crisis: regulatory structures have been streamlined and strengthened, with the Irish Central Bank assuming responsibility for financial regulation; regulatory powers and functions are being enhanced; and the Central Bank is increasing its staffing resources and enhancing its expertise to pursue a more intrusive supervisory approach backed by credible enforcement.

Development and Aid

Ireland, like virtually all developed countries, has had to deal with serious economic challenges in recent years. Whilst we have our own economic and financial challenges to face, we cannot forget that the problems facing the world’s least developed countries (LDCs) are much greater. Perhaps the most severe problem of all is the issue of hunger, the eradication of which Ireland considers to be of central importance. As highlighted at the recent Millennium Development Goal (MDG) Sum- mit, nearly one billion people on the planet are hungry, and despite many success stories, the number of people facing hunger has risen in recent years. Progress towards the first MDG to halve the proportion of people suffering from hunger by 2015 is off-track. It is clear that stronger, more concerted international action is needed to tackle this global crisis. The World Bank is largely credited with placing smallholder agriculture and food security back on the international agenda, not least

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through the 2008 World Development Report. The Bank is a key player and can drive forward the implementation of the ‘Scaling-Up Nutrition’ initiative which has the potential to really impact on under nutrition levels amongst pregnant women and children under the age of two. We strongly encourage the Bank to support such actions. Ireland also welcomes the Bank’s focus on fragile and conflict affected states, and in particular President Zoellick’s personal commitment in this regard. The challenge for the international community is how peace and conflict resolution can be sustained. Ireland would like to see a more integrated approach to fragile and conflict affected states and we encourage the World Bank to create further institutional links with other multilateral bodies for this purpose. We encourage the World Bank to create further institutional links with other multilateral bodies such as the United Nations Peace Building Commission into World Bank decision-making processes in post-conflict countries.

Reforms and Participation in the World Bank

As well as playing a greater role in the LDCs, the Bank is also involved in reforming its own structures and mechanisms to become an institution which is more representative of the countries which it serves. This includes a third chair for Africa at the Board of Directors The World Bank Group has been advancing internal reforms designed to improve the organization’s efficiency and capacity. I welcome progress on the Investment Lending reforms including the new risk based approach. New measures to delegate some routine programs and projects to management will allow the Board to tilt its focus towards the areas of greatest risk and complexity and strengthen its oversight role. Improvements in Human Resources, Decentralization and Matrix management will ensure the organization has the capacity to respond to emerging challenges. The new early warning “Flash Report” which is designed to highlight emerging trends and challenges will guide priority setting and resource allocation. The new access to information policy which became operational this year will facilitate enhance transparency and legitimacy. Ireland welcomes all these developments as tangible evidence that the Bank is making itself an institution more representative, and more open to the voices and opinions of developing countries.

Conclusion

At this time of great and complex global challenges, I would like to re-affirm Ireland’s commitment to both the World Bank and IMF. Ire- land will work towards the reform of these organisations, and we will

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continue to play an active role in helping to make them more responsive to the needs and challenges which the international community will continue to face over the coming years.

JAMAICA: AUDLEY SHAW Governor of the Bank

As the global economy grapples with the effects of the recent crisis, several economies have, for a much longer period, been grappling with fundamental development challenges. Jamaica, for the greater part of the last two decades was caught in a pernicious cycle of low growth and unsustainable fiscal and debt dynamics. This type of situation was not sustainable, as high public sector debt imposes high debt servicing costs and limits fiscal space, leaving the country vulnerable to adverse shocks, increasing macroeconomic uncertainty and lowering the country’s ability to engender long term growth as public investment capacity is crowded out by debt service obligations. The period of slow growth has left Jamaica with a legacy of social challenges that the government is working hard with our development partners to address. Indeed, these challenges present investment opportunities and the basis for real collaboration with our partners as we secure the social safety net and protect the most vulnerable during the period of adjustment. When this administration took over the government in 2007, we immediately set about implementing a bold and ambitious economic programme designed to deal with, among other things, this monster of debt. Over the last three years we have seen: • a re-engagement of multilateral development institutions, • the successful execution of the Jamaica Debt Exchange (JDX), which saw a participation rate of over 99 percent, and interest rates reducing from an average of 18% to 12%, • a medium-term economic programme supported by a Stand-By Arrangement (SBA) with the International Monetary Fund (IMF), • the implementation of a Fiscal Responsibility Framework, • the control of the deficit, • greater control over public expenditure, • the divestment of loss-making public entities. These represent progress in the Jamaican economy, which has been achieved through bold and necessary initiatives which, while necessary, were by no means sufficient. We still have a long way to go. The Government of Jamaica would like to commend the IMF and the World Bank Group for its longstanding support for the Government and

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people of Jamaica, and more so in recent years, which has helped to facilitate the progress to date in the country’s macroeconomic programme. The expansion of the World Bank’s lending programme with Jamaica, the establishing of an office of the International Finance Cor- poration (IFC) in Jamaica, and the SBA entered into with the IMF, all signal the intention of both the World Bank Group and the IMF for continued long-term engagement with Jamaica. In the context of this continued partnership, Jamaica calls on both the IMF and the World Bank Group to work with countries of the Caribbean Community to move from a partnership for stability to a partnership for growth. We note Jamaica’s and the region’s continued vulnerability to exogenous shocks, the most recent of which is the devastating effects of flood damage in Jamaica caused by Tropical Storm Nicole. In this regard, we call upon the IMF and World Bank Group to further enhance the Caribbean Catastrophe Risk Insurance Facility (CCRIF), and to facilitate greater access to financing for climate change mitigation and adaptation. We join with all other small vulnerable economies in calling for a special focus on issues pertinent to our economies, particularly crime, energy solutions, natural disaster risk reduction and management, and investment promotion, while enhancing social protection mechanisms. Finally, we continue to call for special consideration of Heavily Indebted Middle Income Countries (HIMICs), as well as a more comprehensive assessment of the criteria governing the graduation of countries. The continued press toward advancing our economies and further- ing the development of our peoples requires political will, courage and strong leadership. It will take all of us, and our continued valued partnership, to realize these critical changes and desired outcomes.

JAPAN: YOSHIHIKO NODA Governor of the Bank and the Fund

The Global Economy and the Japanese Economy: Combating Deflation

The global economy continues to grow, but there is uncertainty regarding its future. Concerns over the financial vulnerability of some countries-mainly advanced economies in Europe and the United States-and particular countries’ sovereign risks are increasing the downside risks of the global economy. The Japanese economy has been recovering, yet dealing with a tough challenge, that posed by deflation. Deflation keeps real interest

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rates at high levels and discourages companies from investing in tech- nological innovations in the medium- to long-term perspectives. Households do not perceive improvements in their living standards because their nominal income has decreased, even though their real income has increased. This leads people to cut back on consumption. Deflation is also one of the factors behind the strong yen. The rapid appreciation of the yen, which has reached its highest level in 15 years, quells expectations for economic recovery and casts a shadow over the sentiments of both firms and households. Under these circumstances, central banks have a very important role to play. The Bank of Japan will maintain an extremely accommodative financial environment, and, if judged necessary, will take policy actions in a timely and appropriate manner. The Japanese government is also taking all the possible measures to deal with this situation. For the time being, the government will focus its efforts on ensuring an agile and flexible implementation of measures considered highly effective in terms of boosting demand and employment, which include preparing a supplementary budget, in order to deal with any downside economic risks that may result from factors including the strong yen, and overcome deflation as early as possible. In order to end deflation, it is essential that Japan enhance its growth potential and eliminate concerns about its future, which would contribute to closing the GDP gap. By means of the New Growth Strategy and the Fiscal Management Strategy, we will bring about, in an integrated manner, a strong economy, strong public finances, and a strong social security system, thereby achieving steady economic growth and building sustainable fiscal and social security systems.

Expectations for the IMF and the World Bank Group

Now let me address our expectations for the IMF. The IMF has responded with flexibility to the recent crisis, but in order to contribute more effectively to the international economy, it must keep improving itself. The Fund needs to review its missions in light of the recent crisis. Indeed, a crisis in which the problems of domestic financial systems destabilized the entire international financial system and the global economy could not have been envisaged when the Fund was founded. In response to the recent crisis, the IMF has established precautionary lending instruments and strengthened its financial sector surveillance. These efforts illustrate that the Fund’s missions have already shifted. Thus, its missions need to be reviewed to include “financial stability” in the missions laid out in the Fund’s Articles of Agreement.

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Since the outbreak of the recent crisis, the Fund’s role in the global economy has become more important. Against this background, in order for the Fund to further improve its functions and provide its members with financial assistance, its own credibility needs to be secured. To that end, the Fund must ensure that each member’s voice is commensurate with its economic weight and it must enhance the ministerial engagement of its member countries in decision making regarding important issues. In reinforcing the IMF’s lending functions, in addition to the measures already taken, it is necessary that the Fund establish a mechanism through which it can promptly mobilize sufficient funds in order to prevent a contagion in a systemic crisis. I support a substantial quota increase on the grounds that the Fund’s financial resources need to be increased. Furthermore, it is critical to enhance collaboration between the IMF and the frameworks of regional financial cooperation. Next, I would like to talk about poverty alleviation and promoting development in developing countries. Despite a series of efforts among the international community, millions of people are still living in grave poverty, especially in Sub-Saharan Africa and South Asia. In order to accelerate poverty reduction, we should seek to scale up both the volume of funds and the expertise concerned. However, the economic and fiscal situation, in which developed countries currently find themselves, is becoming increasingly aggravated. Therefore, in order to mobilize sufficient public finance under these conditions, it is critical that emerging donors make appropriate contributions corresponding to their place in the world economy. It is also essential to improve relevant public institutions and the investment environment through which private sector actors can easily be involved in economic development and poverty reduction in developing countries. Continuous efforts are required to establish more effective and efficient development approaches that will maximize the impact of development activities and thereby deliver benefits to the most vulnerable people. Verification of the results of development projects is becoming much more important than before because donor countries now emphasize accountability to their taxpayers regarding public expenditures. The term verification, in this sense, does not mean merely measuring the impact of particular projects, but rather scrutinizing, with a long-term perspective, the interaction between the outcome of these projects and the changes in policies and institutions, economic development and the livelihood of the people in developing countries. Inno- vative knowledge and global experience are essential factors to carry out the challenging verification process mentioned above. I really hope that the World Bank Group will take a strong leadership role in mobilizing finance, including the replenishment of the IDA

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16, and providing the expertise necessary to reduce poverty and promote development in developing countries. Finally, I would like to talk about the conservation of biological diversity. In two weeks, the Tenth Ordinary Meeting of the Conference of the Parties to the Convention on Biological Diversity will be held in Nagoya, Japan. It has been pointed out that insufficient recognition of the importance of biological diversity has led to a loss in biodiversity. I sincerely hope that the Conference in Nagoya will contribute to people’s better understanding of various values, including the economic value, of biodiversity.

KOREA: JEUNG-HYUN YOON Governor of the Bank and the Fund

First, I would like to sincerely thank all of you for your efforts to prepare this IMF/WB Annual Meetings. I strongly believe that your dedicated efforts will lead this year’s Annual Meetings as successful as ever. My special thanks also go to the United States government for offering us every convenience for the gathering. Let me take this opportunity to wholeheartedly welcome and congratulate Tuvalu for joining the IMF and the World Bank as the 187th member country.

Role of This Annual Meeting and Expectations

We have made a concerted effort to overcome one of the greatest economic crises in the form of the great recession of 2008. The IMF and the World Bank were at the center of that collective effort, taking emergency measures to lift the global economy out of the crisis. The IMF promptly went to the rescue of member countries in crisis and introduced the Flexible Credit Line for crisis prevention. These measures enabled the Fund to contribute to the financial stability of member countries. Meanwhile, the World Bank dramatically expanded loans for developing countries and stood up as a beacon of hope for the crisis-affected developing countries. Now the global economy appears to be on the right track to recovery owing to such efforts. However, there are still numerous uncertainties ahead for the global economy. Amid these uncertainties, we need to examine the problems the crisis has revealed and establish a crisis prevention system, in order to avoid the repeat of the crisis and to promote sustainable economic growth. The need for such action have been discussed last June at the Toronto Summit where leaders called for an improved global economic

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system to be established by the G20 Seoul Summit in November, through such measures as the IMF reform and global financial safety net. The IMF and the World Bank, as the two major pillars of the world economy, should transform themselves swiftly to better adapt to the evolving global economic system. It would not be an exaggeration to say that all eyes are on this IMF/WB Annual Meetings. We should also remind ourselves that time is a luxury that we do not have. We should once again show our strong faith in the IMF and the World Bank and unlock their potential. In this regard, I would like to touch upon the four major tasks that require the agreement of the member countries and their firm determination at this meeting. First, we need to make substantive progress on the IMF reform such as the IMF quota and governance reform. As agreed at the Pittsburgh Summit, a shift in quota share to dynamic emerging market and developing countries of at least 5 percent from over-represented to under-represented countries should be worked out as soon as possible. This should be accompanied by the IMF governance reform to improve its representativeness, legitimacy, and effectiveness. Furthermore, each country should implement and complete the quota and voice reform agreed in April 2008 without delay. Regarding what I have just mentioned, I truly welcome that agreement on the World Bank’s shareholding realignment was reached before the deadline set at the Pittsburgh Summit. I expect member countries to approve the agreement promptly so that the shareholding realignment results can be finalized as quickly as possible. Second, we need a far-reaching understanding and consensus on the establishment of a global financial safety net among member countries. In this context, it is very encouraging that the improvement of the Flexible Credit Line and the introduction of the Precautionary Credit Line were approved at the IMF board meeting, establishing a framework for a global financial safety net. I would also like to emphasize that it is very necessary that we introduce the additional global financial safety net including those for enhancing the synergy between the IMF and regional financial arrangements. Such measures should be certainly implemented to prevent the systemic risk in advance and prevent its spread to emerging market countries. Third, we need to enhance financial regulations in order to ease financial market uncertainties, to return normalcy to the financial market and prevent future crises. In this respect, I firmly support the agreements on capital and liquidity reform package reached at the Basel Committee last September. We should also deeply explore various

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ideas and policy options to mitigate the side effects of the increased capital flow. Recently, global capital movements are returning to normal as we see active flow of capital to emerging countries. However, we should remain vigilant against possible side effects because several macroeconomic risk factors still exist. These factors include high economic volatility through asset price channels and concerns over the possibility of the recurrence of a sudden stop in capital flow. Fourth, a new development paradigm is also necessary. Our development goal goes beyond just eradicating poverty in developing countries. We should go further to nurture the overall capability for self-reliant and sustainable economic growth. When developing countries evolve into new growth engines of the world economy through such efforts, both developed and developing countries will be able to grow together. To this end, the development strategy focused on economic growth will be high on the agenda at the G20 Seoul Summit in November. The agenda is expected to ultimately contribute to achieving MDGs. I also hope for extensive discussions on a new approach toward the development issue during this IMF/WB Annual Meetings.

Korean Contribution

Korea finds special significance in this year’s IMF/WB Annual Meetings. As the chair of this year’s G20 summit, Korea wishes to convey discussions at this Annual Meetings to the G20 Summit. Among the topics for discussion, Korea is committed to promoting the reform of the IMF, global financial safety nets and a new development paradigm as the major achievements of the G20 Seoul Summit in November. We are looking forward to wholehearted support and cooperation of other member countries for this endeavor. Korea will also do its part by playing the role of mediator between the developed and developing countries. Korea has received much assistance from international financial institutions in the process of its economic development. As the first country to successfully transform itself from a recipient to a donor country, Korea is more than ready to share its development experience with developing countries. Korea finally joined the OECD Development Assistance Committee as a member in 2009, and Korea will significantly increase the ODA/GNI ratio from 0.10 percent in 2009 to 0.25 percent by 2015. Moreover, Korea hopes to build a cooperative relationship with the developed countries to effectively provide support for developing countries. We will also strengthen our cooperation with international financial institutions to actively respond to global issues such as food security

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and climate change. As part of such efforts to tackle the issue of global food supplies, Korea pledged to contribute a total of $50 million to Global Agriculture and Food Security Program of the World Bank together with other developed countries including the United States, Canada, and Spain.

Concluding Remarks

The uncertainties currently facing the world economy are unprecedented. That is why countries around the world have high expectations for this IMF/WB Annual Meetings. Now is the time that member countries come together and join forces. I have no doubt that better results will come about through such cooperation. When we seek only self-interest while refusing to believe in each other, we might fall into the trap of a “prisoners’ dilemma” and trap ourselves in an even worse situation. To avoid this situation, every member country should open up to each other and join hands. It is vital for all of us to coordinate policies and maintain consistency now more than ever.

LAO: SOMDY DOUANGDY Governor of the Bank

It’s my honor and a great pleasure to represent the Government of Lao People’s Democratic Republic at the 2010 Annual Meetings of the Board of Governors of the International Monetary Fund and the World Bank. Let me join my fellow Governors in congratulating Mr. Chairman, the President of the World Bank, the Managing Director of the IMF, and the Government and people of the United States for the excellent arrangements made for this important meeting. I would also like to take this opportunity to express my congratulation to President Zoellick for keeping fruitful works in enhancing the World Bank’s role in supporting poverty reduction of all regions in the world during the recovering of world economy In Laos, fiscal year 2009–10 is the final year of implementing the sixth 5-year social economic development plan. The Lao government has been making every effort to achieve the objectives of the plan, particularly to sustain the economic growth during the global financial crisis. Currently the Lao economy is relatively insulated from the global financial system and its exposure to global trade is relatively limited. Therefore the financial system has suffered little impact from the global financial crisis, while on the other hand the economy is benefited from a sustained demand for exports (minerals from China, gar-

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ments from Europe, electricity from Thailand), for tourism services, and from lower energy (fuel) prices. In addition, in 2009, the government has implemented a significant fiscal stimulus package through increasing the budget and bank lending to sustain economic growth and to compensate for the decline in direct foreign investment. As a result, real GDP growth in 2009 reached 7.8 percent and is projected to be higher than 8 percent this 2010. The overall macroeconomic situation remains stable and robust. The exchange rate appreciated slightly against the US dollar, the inflation has risen, but stay at one digit. The Government is determined to maintain a coherent set of fiscal and monetary policies that will continue to promote macroeconomic stability. In particular, we maintain the budget deficit and credit growth at levels consistent with macroeconomic stability, improvements in tax revenue collection, ensuring that budget allocations to social sectors are adequate to meet the sect oral policy objectives, and accelerate banking sector reform. During 2009–2010, the Government has adopted and implemented many reforms. On fiscal front, the Government has continued the implementation of a comprehensive medium-term Public Financial Management Strengthening Programs (PFMSP) aims to build the capacity of the Ministry of Finance and Provincial Finance Depart- ments to improve the effectiveness, transparency and accountability in managing public money. We are working in enhancing the fiscal planning, budget allocation, consolidated all national treasury accounts, budget execution report and final account audit annually. One of the key successes is the completion of the treasury, customs and tax administration centralization and developed a new fiscal transfer system, establishing greater control of public finance resources, and aligning budget to the policies, as well as the implementation of the VAT since January 1st, 2010. On the financial sector, Government will further develop the sound and robust financial and capital markets in the wake of international financial integration, enable to provide financial resource for long-term economic development. In 2010 the aim of the monetary policy is to maintain a sound monetary stability, stable exchange rate, ensure international reserve to cover more than 6 months of imports, extend amount of credits to economy equal 27.2 percent of GDP, and deposit mobilization is set to achieve 28.4 percent of GDP. Subject to targets set above, the BOL will wisely conduct its monetary policy in the tight direction in order to control money supply as set out. In the meantime, BOL will continue to conduct the exchange rate policy based on market-oriented force by keeping close watch on the movements of the value of Kip against major currencies in line with international currency movements. In addition, in early 2011 the Lao PDR

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sets a stage to officially launch the Lao Stock Market aims to open more investment’s channel for investor and start to develop a capital market in the country. The Government of Lao PDR appreciates the support provided by the World Bank through IDA in a number of sectors that has contributed to achieving significant development outcomes. Over the years, the support has also led to significant building of capacity in the country. More recently, the country has also taken advantage of the IDA’s Crisis Response Window (CRW) to address impacts of global financial crisis and the devastating damages caused by Typhoon Ket- sana last year. Lao PDR aims to exit from least developed country status by 2020. To achieve this we need to grow our economy by 8% annually over the next decade. This is an ambitious undertaking, and we are committed to achieving it by further reforming our policies and institutions to strengthen governance, expanding private sector’s role in the economy, improving people’s social welfare by better targeting of programs in education, health and poverty reduction, and protecting the environment. The Government Lao PDR looks forward to the continuing support of IDA and role of World Bank in achieving the 2020 vision through policy advice, investment support and technical assistance. Despite the challenging times for many developed economies, we urge development partners to contribute to the ongoing replenishment of IDA led by the World Bank so that Lao PDR and other least developing countries could fulfill the aspirations of their people for better lives. Ladies and gentlemen, in short, on behalf of Government of Lao PDR, I would like to express my sincere appreciation to the manage- ments and staffs of the Fund and the Bank, and the fellow member countries for supporting the Lao PDR. I wish the meetings a great success.

MALAYSIA: AHMAD HUSNI MOHAMAD HANADZLAH Governor of the Bank and the Fund

I am Husni Hanadzlah, and I am most honored to speak to you at this Annual Fall Meetings of the World Bank and the International Monetary Fund 2010. We gather here in Washington D.C. at a time of many uncertainties. While we have firmly and swiftly recovered from the economic crisis of 2008–2009, we now know that the global economy would not return to its pre-crisis levels in the foreseeable future. Indeed, when all the momentous changes in the global economic environment that we are now going through have run its course, a new world will emerge.

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The recent global economic crisis has emphasized the necessity for a greater regulatory regime across the international markets. It is our moral responsibility to recognize that there must be economic and social utility in the transactions effected across the global financial system. There must be clear and distinct linkages between the financial markets and the real economy. One must not be divorced from the other. This must be the primary principle in the design of our new financial architecture. In the wake of the last financial and economic crisis, it is easy for us to forget that our modern international financial system has, in fact, overwhelmingly served us well. The world’s prosperity has increased beyond the imagination of anyone who was born even fifty years ago. This achievement was possible because every member of the international financial community played their roles wisely. All of us here share a single collective mandate—to increase the level of prosperity for all. We can fulfill this mandate by engaging in mutually reinforcing and interdependent relationships, without com- promising our integrity and independence. There will be many challenges ahead. To the international financial institutions, I say—on your shoulders lay a heavy and profound responsibility. It is to you that we look to, to provide us the assurance that all is well. As we enter into the new world, I am confident that each and every one of us, members of the international financial community: • the sovereign nations, • the international financial institutions, • members of the financial private sector and • the credit rating agencies, We can demonstrate that there is a better way forward. This we must do, for our new world deserves nothing less. As a progressive and moderate Muslim nation, Malaysia is proud to promote Islamic finance. The syariah principles that bind Islamic finance transactions embody the values of all mankind, consistent with all the world’s major religions. Consistent with syariah requirements prohibiting environmental harm, we invite the World Bank Group to consider the merits of Islamic finance in its funding of the developing world’s green projects. I am assured by the efforts of the World Bank Group thus far—to ensure its relevancy and legitimacy in this new century. In pursuant, I urge my fellow Governors to deliver on the proposed reform initiatives. We must conclude the IMF’s 2008 quota package and move forward with the 14th Quota review.

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While we put in place measures to ensure the safety of our global financial system, we must, nonetheless, be prepared for any eventual possibilities. In this regard, the request for capital increase must be supported. The increase will provide us the capacity to face our future challenges quickly and confidently. The momentum for change that was catalyzed in the wake of the last economic crisis, needs to be maintained. We need to rebuild what we have lost, and gain all things new. In undertaking this task, I am confident that the collective wisdom, that is inherent in all of us, will prevail.

MALTA: MICHAEL C. BONELLO Governor of the Fund

I am honoured to address the Annual Meetings of the International Monetary Fund and the World Bank. I wish to thank the United States Government and the Authorities of Washington D.C. for hosting these meetings and for their excellent organizational arrangements. I also take this opportunity to welcome Tuvalu as a member of the IMF and the World Bank Group. This year’s meetings take place amid continued signs of recovery in the world economy and a gradual improvement in financial market conditions. However, the pace of the recovery remains uneven across countries and its evolution remains uncertain and subject to downside risks, which in part reflect previously accumulated macroeconomic imbalances. At the same time, particularly in the advanced economies, further balance sheet adjustment remains necessary in both the financial and non-financial sectors. In this regard we are pleased to note the considerable progress that has been made in terms of the review of the Fund’s mandate and its lending facilities, including those covering LICs. Taken together these efforts should ensure that the Fund is in a better position to help bridge policy gaps in member countries while ensuring a more effective response in case of financing needs. The Fund has been relatively successful in mobilizing resources necessary for a more timely and meaningful response to balance of payments problems, including those triggered by the crisis. Earlier this year, Malta has honored its commitment in this sense with the signing of a bilateral loan agreement with the Fund, a grant contribution to the Poverty Reduction and Growth Trust and participation in a voluntary SDR trading arrangement. Malta also continues to fully accept its commitments and responsibilities in terms of the Millennium Declaration

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and to provide its modest share of assistance in the development agenda, in partnership with other countries. Sound macroeconomic and financial policies, however, remain the first line of defense against the recurrence of crisis and the best guarantee to a sustainable recovery. The steps that have already been taken by the Fund to improve the coverage of financial sector issues in surveillance and analytical work are encouraging. In particular, I would like to welcome the recent decision of the Executive Board to make financial stability assessments under the Financial Sector Assessment Program (FSAP) a regular and mandatory part of the Fund’s surveillance for members with systemically important financial sectors. One aspect that deserves further study in the period ahead concerns the rationale behind the accumulation of foreign reserves, the benefits and costs of this trend, and possible policy responses. During the past year, the Fund has also deepened its engagement with other regional and international institutions involved in financial regulation and crisis prevention to ensure a co-ordinated economic adjustment process in those countries most severely affected by the crisis. While this momentum is to be commended and should be maintained, further work remains necessary to improve the clarity and coherence of the Fund’s policy advice and to ensure that it is implemented. There is also scope for further work aimed at exploiting synergies with bilateral and regional financial safety nets. Further reflection is also necessary with regard to the proposal to establish a Global Sta- bilization Mechanism. The effectiveness of these measures in terms of improving market confidence would be maximized if they are also supported by an IMF quota increase that reflects the long-term financial needs of the membership. A doubling of quotas would be consistent with this principle. This should be accompanied by a quota realignment that would reflect more appropriately the increasing role of dynamic economies in the global economy. At the same time, it is also necessary to review the balance between quota and borrowed resources to ensure that the Fund remains a quota- based institution. In this regard, we welcome the progress that has been made in terms of the ratification of the 2008 Quota and Voice Reform. While not among the countries eligible for the ad hoc quota increase approved as part of that reform, Malta has made further progress in terms of the ratification of the related amendments to the IMF’s Arti- cles of Agreement and those related to the Fund’s enhanced investment authority. I am pleased to say that Malta’s parliament approved the amendments this week and so the acceptance procedure by Malta should be concluded before the end of this month.

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As regards the Fourteenth Review, and in particular, the realignment of quotas among members, we consider that a reduction in the over- and underrepresentation of countries is essential for the Fund’s legitimacy and future effectiveness. The reform should at the same time protect the quota share of poor countries while ensuring a fair burden sharing across all overrepresented countries. Underrepre- sented advanced countries should receive equivalent treatment as other underrepresented countries. Thus any decision as to whether to forego a quota increase should be at the discretion of the eligible country concerned and no overrepresented country should become an underrepresented one after the reform. Further, the current quota formula should serve as the sole basis for determining the degree of outlineness and the principal basis for determining eligibility for any selective or ad hoc increases. A review of the formula could be considered at a later stage, given that a number of IMF members have not yet ratified the 2008 reform. It is probably also not feasible considering the very short-time available until the end Jan- uary 2011 target date for completing the quota review. Focus should therefore be on resolving, by this date, the other outstanding issues under this heading and other aspects of governance, which should preferably be addressed as a single comprehensive package. Malta concurs with the view that there is a need for greater ministerial engagement and a clarification of the responsibilities among the advisory and decision making organs of the IMF. While such enhanced engagement could be achieved either through a strengthened IMFC or a new International Monetary and Financial Board, the arrangement that prevails in the end should ensure that Ministers have among their responsibilities the regular assessment of members’ economic and financial developments and the implementation of the Fund’s policy advice. We also agree that emerging market and developing countries should be better represented on the Executive Board. From a procedural point of view, the decision-making process at the level of the Executive Board could also be rendered more efficient if a change in its composition is accompanied by a lowering of the majority thresholds that apply for special voting majorities and welcome further work on the selective application of double majorities. Significant progress has been made in implementing the World Bank reforms agreed in 2008, particularly with regard to the representation and voting power of developing countries and rendering the selection process for the Bank’s President more merit-based and transparent. This principle should guide all future appointments of IFI heads. I conclude by affirming Malta’s support to the processes that are taking place within the Fund and the Bank to make these institutions more responsive to the needs of the broader membership.

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MONGOLIA: BAYARTSOGT SANGAJAV Governor of the Bank

The world economy is emerging from one of the most severe global crisis in decades. After a staggering fall in 2008 and 2009, the global economy is expected to slowly rebound in 2010. The World Bank and the IMF have been on the front lines responding to the global financial and economic crisis and have made significant efforts in assisting member countries and mobilizing resources, raising funds to support the global recovery. Swift responses and actions taken and are being taken by these two institutions are commendable. Mongolia was hit hard by the global crisis; it was one of the hardest hit countries in the East Asia and Pacific region. After a few years of rapid growth, Mongolia’s economic growth dropped to a negative 1.9 percent in 2009. However, timely actions taken by the Government of Mongolia, with the assistance of our external partners, including the IMF and the World Bank have ensured that the impact of the crisis on the economy was contained, and we are expecting a growth exceeding 7 percent in 2010, generated mostly by the increase in copper price and investment inflows. As a response to the crisis, the Government of Mongolia has successfully implemented a Stand-by Program with the IMF, Develop- ment Policy Credit with the World Bank and Social Sector Support Program with ADB and Government of Japan. Together with our partners Mongolia has made major strides forward reforming our fiscal system, to instill fiscal sustainability and responsibility, as well as taking policy measures to avoid future pro-cyclical policies. We have taken decisive measures to strengthen our financial sector, and we are now in the process of reforming our social transfers system, which would better protect the poor during the economic transition and thereafter. These reforms and measures would not have been possible without the political commitment of Mongolia, as well as the generous support we received from our external partners. However, we acknowledge that going forward we continue to face enormous development challenges. The global economic recovery is still fragile and uneven, and the aftermath of the crisis is still felt by many around the world, especially by poor and low income countries. The crisis exposed our vulnerabilities and taught us some lessons that we must be prepared in the future. Available lending instruments of the IMF were expensive, and the IDA financing for low income countries was tight, as half of Mongolia’s IDA15 allocation was frontloaded and gone to immediate crisis response, leaving no room for long term development undertakings. Hence we believe that both the Fund and the World Bank Group need further strengthening of their capacities

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to enable them to fully exercise their roles with respect to member countries, helping them to meet the challenges of the post-crisis period by making available additional financing and expertise, especially since the Fund has and IBRD will now have greater resources at their disposal owing to both the general and selective capital increases. We salute the commitment of the international community to achieving the Millennium Development Goals (MDGs) for 2015. In this regard, further efforts must be made to speed the pace of moving toward these goals, in particular those relating to halving poverty worldwide. Achieving this aim would mean redoubling efforts and providing financial resources, as well as strengthening cooperation among all development partners. The growing needs of the low income countries and the need to do catch-up work to achieve the MDGs call for additional efforts on the part of donor countries in order to give even greater strength to the IDA16 replenishment. We feel that the cost of borrowing for IDA16 should not be increased when most IDA countries continue to face severe difficulties, owing to the recent food and financial crises and natural disasters. We welcome the establishment of a pilot Crisis Response Window in IDA, which has proven to be an essential lifeline for low income countries affected by the crisis. We look forward to the Crisis Response Window becoming a permanent instrument of the IDA. We would also like to stress the importance of IFC to expand its investments and operations to IDA countries.

MYANMAR: U HLA TUN Governor of the Bank

It is truly a pleasure and an honor for me to have the opportunity to address such a distinguished audience at these 2010 Joint Annual Meetings of the International Monetary Fund and the World Bank. Taking this opportunity, I would like to warmly thank the Bank and the Fund for their warm hospitality and excellent arrangements for these meetings. At this point of time, we all have a shared view that recovery from the recent global crisis has taken place at different speeds across the globe. We take note from the Fund’s updated World Economic Out- look that output in advanced economies is now expected to expand by 2.5 percent in 2010, an upward revision of 0.25 percentage point, while the Asian economies’ growth is expected to reach 7.5 percent in 2010. It is heartening to learn that the global growth is projected at about 4.6 percent in 2010, an upward revision of about 0.5 percentage point in 2010, owing to stronger efforts made during the first half of the year. However, the forecast for 2011 remains lower than 2010 growth projec-

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tion. This gives us alarm to remain vigilant. Although there were some encouraging signs of growth with the steady recovery in most advanced economies and strong growth in emerging Asia, fiscal sustainability issues, high unemployment and deflationary pressures in advanced economies and inflationary pressures fueled by capital inflows and escalating asset prices in emerging economies are threatening the recovery of the global economy. Nevertheless, we could hope at least that a global double-dip recession would be avoided. As have been made in previous year’s meetings, let me now brief you on recent economic developments in Myanmar. Since 1992–93, Myanmar has implemented short-term economic plans and accordingly, 2009–2010 is referred to as the fourth year of the Fourth Five-Year plan. Mainly due to increasing exports of natural gas and agricultural exports, Myanmar expects an economic growth rate of 12 percent in 2009–2010, compared to the previous year’s growth rate of 10.1 percent. Favorable weather condition gave support to a higher growth of output. Regarding the developments on the fiscal front, fiscal imbalances have been contracted after prudent fiscal policy has taken place in the previous years. Myanmar has tried to strike balance between the spending for development purposes and controls over the spending not to cause destabilizing conditions. We have stepped up in taking appropriate measures to enhance government revenue. This has helped reduced the budget deficit in 2009–2010. On the monetary front, I am pleased to express that the inflation rate has bogged down to around 3.84 percent in September 2009, from 12.04 percent at the beginning of 2008–2009, due to the decline in the global oil price, slow pace of domestic credits and prudent policies. Regarding the banking sector, due to strengthened banking supervision, regulation and very limited integration into the global financial markets, Myanmar has limited adverse effects of the global financial crisis. We have even an increased number of private banks. We also continue to ensure that the banking sector is proper, healthy and irrele- vant to improper transactions, including money laundering and financing of terrorism. On the external front, Myanmar has witnessed an increased external demand for its mining, forestry, marine and agricultural products and its current account has been in surplus since 2004–2005. In Decem- ber 2009, the nation’s current account remained in surplus, mainly due to trade account surplus. I am pleased to mention that Myanmar has had a speedy recovery from the disaster caused by Cyclone Nargis that hit some parts of Myanmar in May 2008. Here, on behalf of the government of Myan- mar, I would like to express our sincere and deep gratitude to all those who have helped our people for rapid rehabilitation.

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In pursuit of all-round development programs, Myanmar has implemented various socioeconomic development projects steadily. Border areas development programs, rural development schemes, economic infrastructure development programs, 24-special development zones projects, HRD programs, literacy campaigns, and a broad-based health care schemes etc, are among crucial cases of development endeavors made within our own resources. Of course it has been over twenty years now that the multilateral institutions have neglected Myanmar’s development needs and its eligibility to enjoy tangible assistance as a member of these institutions. Myanmar has also made progress in achieving the Millennium Development Goals. We will continue to promote our cooperation with the international community. I would like to close my statement by expressing our thanks again to all those who put efforts to make this year’s meetings of the Bank and the Fund a success.

NEPAL: SURENDRA PANDEY Governor of the Bank

Since our meeting in Istanbul, Turkey last year, the global financial and economic crisis has ebbed as shown by the emerging signs of global economic recovery. However, their aftershocks are still being felt by smaller economies like Nepal in terms of decreasing exports, reduced flow of remittance, and decreasing trends in tourists’ arrival. These factors have severely affected the overall growth of the economy and the country’s balance of payment situation. In order to overcome the economic hardships being experienced by small and vulnerable economies like Nepal, concerted and coordinated efforts are needed to ensure greater market access in developed markets. Given the volatility of international financial architecture, it is important for us to have a regular surveillance mechanism to monitor global economic and financial fluctuations and its impact to the economies in the region. As you are aware, Nepal is yet to take peace process to its logical conclusion and promulgation of new Constitution by May 28, 2011. We are committed to end the transition period as early as possible, while we continue our focus on the agenda of economic development. In the last meeting, I had mentioned about key challenges being faced by Nepal. Nepal continues to face them. I would like to take this opportunity to mention here that we have not been able to achieve success on those issues. We are still in the process of drafting a new Consti- tution and expect to complete by the extended timeline of May 28, 2011. Nepal Government has formed a Special Committee under which the Maoists combatants are brought into; and reintegration of Maoists combatants who are for nearly four years inside the canton-

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ments, will be completed within the next four month’s time. We would like to thank the international community’s for their continued support in the peace process and still need more support to complete relief, rehabilitation, reconstruction and reintegration. In addition to above, I would like to highlight some of the urgent challenges Nepal has to face in its efforts of economic development. We realize that there is no alternative to increased investments in the priority sectors by creating investment friendly environment. We need to moderate high level of inflation and receive declining productivity and production of food grains. Likewise, we need to enhance the level of income by generating adequate and decent employment opportunities. There is a pressing need to ensure that returns from development is inclusively and equitably shared by all geographic regions, communities and groups left behind in the process of development. We know this calls for good governance among service providers. Of equal importance is the need for ensuring active local participation in infrastructure development and management. To ensure dependable energy supply, among others, by improving the public services is a daunting challenge, which must be overcome at any cost. We are committed to continuing reform in improving our governance performance through improved public financial management, public administration and service delivery to the people. I greatly acknowledge the World Bank’s recent decision of endors- ing capital increase for IBRD. This share realignment and the decision making process of the IBRD will offer special protection for the voting power of the smaller and vulnerable economies. We appreciate the World Bank’s efforts of increasing the voice and influence of developing countries at the World Bank Group. We also commend implementation of World Bank Group’s Post-Crisis measures to enhance the financial capacity of the IBRD and IFC as well as its own internal reform agenda. We also do appreciate the World Bank Group’s announcement to mobilize significant new funding for health, education, climate change, and agriculture to help countries achieve their MDGs by 2015. I also commend for effective leadership of President Mr. Robert Zoellick’s and Managing Director Mr. Strauss-Kahn in enabling the institution to encounter various global challenges. At the micro level, particularly the Bank’s lending instruments to developing countries need to be more focused on infrastructure development such as hydropower and road construction projects. Nepal needs huge investment in infrastructure development in order to create employment opportunities to the people. In case of IDA-eligible countries either in conflict or just emerging from conflict, the country context needs to be considered in making allocation decisions. I am sure under the leadership

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of President Zoellick and Managing Director Strauss-Kahn, major reforms in these institutions will be successfully implemented. IDA-eligible countries are likely to suffer the most from climate change impacts because of their location, low incomes, low institutional capacity, and greater reliance on climate-sensitive sectors such as agriculture. We have been passing through very adverse effects of climate change in our agriculture, human health and biodiversity. Nepal is a predominantly rain-fed agrarian economy where three out of every four population depends on subsistent agriculture for its livelihood. For last few years, monsoon is getting progressively delayed causing very adverse affects on paddy production and thereby on the entire annual cropping cycle. This calls for research on drought and rain resistant crops. Furthermore, snowline on the Himalayas is moving further and further north, causing apprehension on the sustainability of the glacier-fed river system in the South Asian region. I therefore call upon the World Bank Group and the Fund to pay serious attention to such alarming scenarios. At this moment, I also wish a success for ongoing negotiations for IDA 16 replenishment. Not only Nepal, countries like Maldives, India, Pakistan and Bangladesh in the South Asia region have also been much affected in the recent months through heavy rains/floods causing death and replacement of thousands of people in the affected area. There is a need of joint efforts to fight against the menace of climate change I would like to thank the Bank and the Fund for their continued support for Nepal’s overall development in the past and hope for the enhanced support in the future. Before I close, I would like to express my sincere appreciation to the Government and the people of the United States of America for the excellent hospitality accorded to me and my delegation and also for the excellent arrangements made for these meetings in this historic capital city of America. I wish the Annual Meeting a grand success and thank you all for your kind attention

NETHERLANDS: JAN KEES DE JAGER Governor of the Bank

The global economy continues to recover, but considerable uncertainty remains surrounding this recovery. Although many countries show signs of recovery, some countries continue to face slow economic growth. In the US, consumer spending remains subdued due to lower house prices, other equity losses and higher unemployment levels. These trends can also be observed to some extent in various European countries. A weaker macroeconomic outlook could affect banking sec-

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tor resilience, which in turn could feed back into the real economy. In addition, the banking sector remains susceptible to sovereign and funding risks as well as legacy problems that need to be addressed, against the background of the ongoing regulatory reforms. At the same time, policy measures and plans aimed towards fiscal consolidation, as part of a comprehensive economic strategy, have contributed to investor confidence and brought back a more stable situation in Europe and supported a path to economic recovery. In addition, projections suggest a further pick up of European economic growth with Germany leading the way, though the pace of recovery differs substantially between European countries. The main downside risk to European economic growth lies in renewed concerns about sovereign funding and solvency risks and as such it is of vital importance that EU countries live up to their progressive, sustainable fiscal consolidation plans underpinned by structural reforms. The importance of growth- friendly fiscal consolidation is also illustrated by the potential spillover effects on trading partners, including those Central and Eastern Euro- pean countries that are showing weak growth. Short term consolidation measures to avoid debt levels from rising further will also be needed in some African countries. Whilst the limited integration with international financial markets and improved fundamentals has helped shield the African continent from the crisis, a number of countries are confronted with decreasing government revenues and increasing social spending, against the background of an already difficult external environment which includes declining donor support and volatile and high food prices. The latter underlines the need to create enough room for fiscal maneuver, in order to allow targeted and temporary measures to assist the most vulnerable groups. A return to strong and sustainable growth crucially depends on external rebalancing. Global current account imbalances are still present and may widen again over the medium term. The latter could create new financial and economic instability. Moreover, the resurgence of capital flows to some emerging economies also poses risks to global stability, since it could lead to, among others, overheating in some economies. The dislocations in the global system accompanied the risks that these could increase again in the future requires a committed high-level dialogue. The IMF is in the unique position to bring about the much needed multilateral level that should contribute to the reduction of global imbalances with the aim of attaining sustainable global growth.

IMF

Considerable progress has been made in reviewing the Fund’s mandate towards strengthening the Fund’s role in safeguarding global

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economic and financial stability and preventing future crises. The review process has been guided by the recent crisis that has revealed the need for enhanced surveillance. In this respect, we support the proposals to strengthen multilateral surveillance and further efforts towards enhancing bilateral surveillance. However, an important challenge with respect to effective Fund surveillance is the follow-up given by countries to Fund’s advice. Herein lays an important role for the IMFC, as a forum for policy dialogue where countries could hold each other accountable and apply peer review. As a proponent for mandatory FSAPs and better integration of FSAPs in Article IVs, we welcome the recent decision by the Board that the financial stability element of the FSAP will become a mandatory part of the Article IV assessments of the 25 most interconnected economies. Next to surveillance, lending facilities are central to the Fund’s toolkit, in which the flexible Stand-By Arrangements remain the cornerstone. We believe the IMF should continue the flexible approach it has applied during the crisis with financial arrangements and policy advice. Following the changes to IMF lending framework introduced last year, further improvements have been made by fine-tuning of the FCL and introducing the PCL. We welcome these changes that ensure an adequate response to members’ needs in challenging economic times. At the same time, we underline the importance of appropriate incentives to safeguard the financial position of the Fund and the revolving nature of its resources. In this respect, we underscore that (tailored) conditionality should remain at the core of the IMF lending programmes, to ensure the success of Fund involvement in tackling underlying vulnerabilities and underpin economic and financial stability. By January 2011, we should complete a comprehensive reform package to increase the legitimacy and effectiveness of the Fund. Any shift in quota shares should reflect the economic weight of countries in the world. We welcome proposals to enlarge Governors’ and Ministers’ engagement in the strategic oversight of the IMF and increase the accountability of staff, management and the Board. All of the above should ensure a more effective Fund that contributes to global financial stability and sustainable economic growth.

World Bank

The World Bank Group has responded timely and effectively to the crisis, making efficient use of the means at its disposal. Nevertheless, while recognizing that the impact of the crisis on regions and countries is diverse, the crisis will have a lasting effect on poverty and inequality. The World Bank estimates that compared to the pre-crisis trend,

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64 million more people are living in extreme poverty in 2010 and some 40 million more people went hungry last year. These developments constitute a permanent setback in reaching the Millennium Develop- ment Goals. From a policy perspective we encourage the World Bank, in close cooperation and dialogue with its client countries, to continue its work on strengthening resilience of its client countries, be it through better safety net systems, improved systems of domestic resource mobilization or adequate financial sector strategies. We recognize that IBRD’s strong capital position contributed to its ability to act counter cyclically during the recent crisis. With regard to IBRD’s future financial position and reserve range, a balance should be sought, recognizing the importance of IBRD’s countercyclical role, while taking into account efficient use of resources and current client demands. Furthermore, we would welcome an analysis of possible options on innovative contingent facilities to support IBRD’s role during future crises in an efficient way. Another important lesson for post- crisis policy is the significance of a dynamic private sector. IFC has ample opportunities to achieve development results and can act as a catalyst for domestic resource mobilization in both IDA and non-IDA countries. IDA needs a new replenishment this year. With a view to IDA’s financial sustainability, especially in the long term, we stress the importance of broad and appropriate burden sharing between donors and more innovative use of IDA’s scarce resources. We also welcome contributions from other members of the WBG to IDA, reflecting the relationship between and shared membership of the institutions of the World Bank Group. With respect to internal reforms, we welcome the development of an integrated development results and corporate performance framework. In this regard, we look forward to the corporate scorecard which should bring together the various indicators already in existence and translate them into one Annual Results Report. Second, the resource constraint requires, based on the proposed selectivity framework, a further focusing of interventions, especially in those areas where priorities can be reached most efficiently. The selectivity framework should take into account the need to be responsive to client needs, and enable staff to remain flexible while at the same time provide accountability to stakeholders. Furthermore, we would like to stress again the importance of speedy continuation of the decentralization progress, in particular the delegation of decision authority to the field, based on clear strategic directions, and with a strong emphasis on harmonization and alignment. We advocate enhancing shareholder stewardship and oversight by strengthening the Development Committee, for example by stronger involvement of shareholders in the agenda-setting. This should be

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accompanied by a clearer delineation of responsibilities between Exec- utive Board and Management, which should give Executive Directors more time to deal with strategy and oversight, instead of operational tasks. We would welcome concrete recommendations and proposals for decision by the Spring Meetings on modernizing the Development Committee, selection of the President and the dual performance feedback of the Board and the President.

NEW ZEALAND: BILL ENGLISH Governor of the Bank and the Fund

Greater urgency is needed to strengthen growth and prevent the reemergence of imbalances.

A tentative and modest economic recovery is underway in advanced economies. While growth in emerging markets has rebounded more quickly, more sustainable medium-term sources of growth need to be developed. The risks to the outlook remain substantial. Recovery in advanced economies has yet to become self-sustaining—there are few signs of substantial employment growth, and the financial sector remains impaired and vulnerable to shocks. Most importantly there are few easy policy options open to the largest advanced economies should risks materialize. While we welcome the progress made by the G20 in addressing the global economic and financial crisis, greater political momentum and urgency is required to strengthen growth and manage the risks to the outlook. We call on G20 countries to exercise stronger leadership, including by making the necessary structural and policy adjustments. Medium-term fiscal consolidation plans for advanced countries with larger deficits need to be put in place. Financial sector crisis measures have largely been removed and progress has been made on raising capital. However, it is apparent that several advanced countries have yet to deal adequately with weak financial institutions and continued financial sector weaknesses will constrain growth. More broadly, substantial weaknesses remain to be addressed in the framework for financial sector regulation, and crisis prevention and resolution—namely preventing the reemergence of weaknesses in financial institutions that are considered too big to fail, and ensuring the capacity to deal with stress in those institutions. Adjustment scenarios prepared for the G20 suggest that tighter fiscal policies in advanced countries will weigh on demand and unemployment will remain high, unless offset by structural reforms. There

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are few signs of the structural reforms that would address long-standing barriers to growth in advanced economies and see a rebalancing towards domestic demand in emerging Asia. Further and faster adjustment in these areas will benefit all economies, including small open economies like New Zealand who typically face similar challenges in rebalancing growth to the private sector and external demand. Sharing the burden of global rebalancing more evenly will help these economies with their own internal rebalancing, by supporting sustainable growth in external demand.

Reforms to the Fund to address the lessons from the crisis are a reasonable start, but there are signs that the reforms may be too tentative

We support an ambitious set of governance reforms that ensure that the Fund improves its legitimacy and effectiveness. Quota reforms need to increase the size of the Fund to ensure it can deliver on its current mandate. The ultimate agreement also needs to better reflect the current weight of member countries—here the broad goals for a shift in quota agreed by the IMFC are appropriate. We encourage the membership to aim for a more ambitious set of governance reforms, which would include a mechanism for Ministerial engagement that ensures the continued relevance of the IMF as a key mechanism for international policy coordination. We consider that the appointment of the Managing Director remains an anomaly that is not consistent with best practice—the best candidate should be selected regardless of nationality.

A start has been made in addressing significant weaknesses in surveillance highlighted by the crisis.

In the financial sector there has in the past been insufficient attention to the weakness in and spillovers from policies in the large systemic economies. Regular surveillance needs to focus more on these issues, and efforts to produce spillover reports are a step in the right direction. We support the measures taken to date to strengthen financial sector surveillance, although ultimately we would hope that financial stability assessments become more frequent for systemic countries and become a regular feature of Fund surveillance for the whole membership. There is large scope for better use of the Fund’s position as an intel- lectual credit union, through reforms that play to its comparative advantage of drawing on the range of membership experiences. Increased attention to regional and other cross-country analysis has been a welcome start.

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Improvements to the Fund’s focus and legitimacy will be welcome. But its effectiveness will remain critically dependent on national policy decisions. This requires a stronger sense of ownership and commitment to addressing problems by Ministers and national authorities. We support the changes to the Flexible Credit Line and the introduction of the Precautionary Credit Line to strengthen the Fund’s crisis prevention tools. While we are open to further discussions on a better contingency plan for dealing with systemic global or regional crises, there is limited value in having a very specific mechanism that can trigger predefined crisis measures.

The Fund and the World Bank need to be proactive in supporting their Pacific Island members.

Over the past year we have seen an improvement in the level of engagement from the World Bank in the Pacific region, and a greater focus on small states. Improved outcomes for the Pacific region are a key focus for us which is why we have decided to increasingly deploy our resources within our region. We welcome the Bank’s increased presence in opening new country offices and its commitment to multi-donor partnerships in education, energy efficiency, health and aviation reform in the region. We want to ensure that engagement is effective and builds on existing efforts and initiatives. The recent agreement to devise individualized country assistance strategies for each country in the region is a further step forward. We will look for this engagement to be continued and strengthened in the coming year. Despite improvements in macroeconomic policies, many Pacific Islands countries remain very vulnerable to external shocks. We appreciate the work that the Fund has done in the Pacific through the regional technical assistance centre and recent Fund programs in response to some of the PIC’s specific adjustment plans. Nonetheless we consider that the Fund can be more proactive to address their need for strengthened macroeconomic frameworks and structural changes to improve their resilience to global and natural developments. Strengthening the surveillance of these small island economies, including addressing common regional issues, is one area that the Fund can further build on its partnership with its pacific island members.

The World Bank must focus on improving results on the ground.

At this time of severe fiscal constraint New Zealand, like other donors, is looking closely at its multilateral engagements in an effort to

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ensure value for money from our investment. Our focus is to ensure that every dollar of our aid expenditure is spent in the most effective way possible to ensure that tangible development results are being achieved on the ground. Some will suggest that it is merely a matter of more money being provided, of donors being asked to dig deeper. Despite the effects of the global economic crisis, most nations are digging deeper. New Zealand is increasing our aid budget by almost 15% over the next three years. But more money alone will not solve development problems. We need a much greater focus on aid effectiveness and we need to place a much higher premium on donor coordination. In this respect we welcome existing World Bank efforts in the IDA Results Measurement System and we look forward to seeing further progress on measuring outcomes. We would like to see clear objectives and benchmarking for IDA activities as well as a strategy to ensure the results of impact evaluations are used to make improvements in the future.

Internal Reforms at the World Bank must continue to enhance the legitimacy and accountability of the institution.

We recognize that the Spring 2010 meetings achieved significant changes in voice reform. New Zealand particularly welcomed the commitment to protect the shareholding of the smallest and poorest members. In addition to institutional voice reforms we also want the Bank to continue to find innovative ways that small developing countries, such as those in the Pacific can have an effective voice. We support the progress made on the Bank’s “post-crisis direction” reforms which are important to enhance the accountability, legitimacy and transparency of the institution. We look forward to seeing the progress of working groups at Spring 2011, including work on the merit based selection of the President without regard to nationality and strengthened shareholder oversight. Finally, we would like to extend a warm welcome to Tuvalu as the newest member of our Constituency Office.

PALAU: KERAI MARIUR Governor of the Bank and the Fund (on behalf of the Federated States of Micronesia, Kiribati, Marshall Islands, Republic of Palau, Samoa, Solomon Islands, Tuvalu, and Vanuatu)

Let me begin by expressing my most sincere appreciation for the opportunity to participate in this auspicious occasion of the 2010 Annual Meetings of the International Monetary Fund and the World

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Bank Group. It is indeed an honor to deliver this statement on behalf of the Pacific States of the Republic of Kiribati, the Federated States of Micronesia, the Republic of the Marshall Islands, the Republic of Palau, Samoa, the Solomon Islands, Tuvalu and Vanuatu. We would like to take this opportunity to welcome Tuvalu as the newest member of the World Bank.

Economic crisis and recovery

Earlier this year, countries of the Pacific joined together in Vanuatu for the U.N. Pacific Conference on the “Human Face of the Global Economic Crisis in the Pacific”. It availed us an opportunity to collectively assess the unique vulnerabilities of Pacific Island Countries and explore regional and country specific sustainable solutions beyond the crisis. At the same time it highlighted that progress towards the achievement of the Millennium Development Goals would still be hampered as a result of reduced resources leaving some who were on track to meet these goals to fall behind. In our part of the world, the human face that lies vividly behind the economic data must always be a foremost consideration to uplift and to nurture. While we are always hopeful for inclusive economic growth that may relieve social disparities, lessened capital resources from the crisis increasingly limit our abilities to provide the basic social services to meet the needs of our people. And even lesser opportunities for our people to provide for their everyday needs. Our Pacific Island countries do not have at their disposal, the ability to offer economic stimulus assistance to our people. Cash-strapped economies have had to continue to maintain stringent fiscal restraints to offset lagging revenue. While the restraints will limit expenditures, they cannot by themselves be the ultimate remedies to rising obligations of debt, inflation and increased food and fuel prices. To this end, many have had to resort to taking on debt to pay for debt in the name of reform; conscious nonetheless, of the economic volatilities that can affect their ability to repay and are aware of the restraints that such obligations can place on fiscal options available to them in the longer term. In this context, we consider that the Bank and the Fund can offer more in terms of being more proactive towards our need for strengthened macroeconomic frameworks and structural changes to improve our resilience to global and natural developments. We welcome the efforts of the two Institutions to strengthen and enhance their services through the country and regional offices. We would like to specifically make mention of the direction that the World Bank is taking in developing individual country assistance strategies of the Pacific Island countries.

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Reform

We urge the World Bank Group and the Fund, and other multilateral institutions, to continue to be a critical player in the post-crisis recovery agenda. This is important for maintaining momentum during an unstable recovery period. Therefore, we commend the Bank for embarking on an impressive internal reform agenda to address long- term development challenges and changes created from crises. We believe these reforms will shape the future engagement of the Bank and the Fund within the region through a more effective, client- focused, nimble and flexible approach.

IDA

We recognize that IDA turns 50 since its establishment and would like to congratulate IDA for their long-term support to development programs in the region. IDA’s resources and knowledge services have complemented our efforts to cope with the impact of the global crisis. We believe IDA is critical to the achievement of the MDGs in the region and it is well positioned to scale up to help countries close the gaps in critical areas and address emerging developmental challenges linked to climate change and crisis response. We urge donor communities to put more resources to IDA so that it extends to our countries a robust financing facility.

Accessing the resources and expertise of the Fund and Bank

We acknowledge the efforts the Bank has made to increase its representation in the region with the joint offices opened with the Asian Development Bank in many Pacific countries. We also acknowledge the opening of the office this year for the IMF Resident Representa- tive in the Pacific, which demonstrates the importance the Fund places to the region. We hope for more responsive needs to the Pacific members as a result, and will certainly allow for the more regular contact to facilitate engagement. We also encourage the Bank and the Fund to progress innovative and efficient ways of bringing its expertise closer to its member countries, for example, through a more effective co-location of technical assistance services between the Fund and the Bank, particularly within the umbrella of the Pacific Financial Technical Assistance Centre.

Climate change

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neighbors relocate their homes away from the shorelines and watch crops disappear beneath the rising tides. In all of this, lie critical issues of the environment that sustains our livelihood, of food security and the survival of our people. Not only that, our resources are being diverted away from pursuing developmental projects to addressing the effects of the rising tides. We continue to stress that climate change should be a priority that cannot be set aside to be discussed later. While the Bank has offered assistance on adaptation and mitigation efforts to relieve countries of the devastating effects of climate change and other natural disasters, it should continue relentlessly to provide accessible resources to address these needs. It is our hope that sometime in the future, small island states who contribute the least to the ill effects of climate change may benefit most from the resources allocated toward remedial efforts.

Conclusion

After sharing these impressions, I must offer my most sincere expression of gratitude and genuine appreciation to the Management and staff of the World Bank and the International Monetary Fund for the many years of generous assistance offered to our respective islands of the Pacific. Your growing presence and engagement through your regional offices is assurance of commitment to be responsive to regional and country specific needs of our small island states. I am hopeful that through your support of regional collaboration, our interactions with each other continue to be a forum of shared experiences that inspires us to work together to attain a shared vision of sustainable development that ensures socioeconomic benefits for our people and the island countries of the Pacific. I trust that your foresight will enlighten our work towards the achievement of the Millennium Development Goals.

PAPUA NEW GUINEA: LOI M. BAKANI Governor of the Bank and the Fund

It is my pleasure to address this 2010 Annual Board of Governors Meeting. On behalf of the Government of Papua New Guinea I would like to extend our appreciation to the Bank and the Fund for the ongoing effort and initiatives to improve our living standard and improve our global financial systems. We look forward to a fruitful round of meetings here in Washington DC in sharing our experiences on issues of significance that affect us all. Governors and colleagues, prospects for global growth continue to be impacted by the aftermath of the financial crisis. I reiterate the International Monetary Fund’s (IMF) outlook on the world economy 1 that it anticipates growth will be 4 ⁄2 percent in 2010. Whilst we are

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heading in the right direction we must also acknowledged that growth remains sluggish by past standards. At the same time downside risks remains due to rising concern over sovereign debt and fiscal imbalances that could trigger a repeat of the financial and economic crisis. The downside risks underscore the need for ongoing cooperation and commitments from mutual partners to develop policies and governance mechanisms to address the challenges and secure global prosperity. At the global level, we should support policies that address structural imbalances over the medium term including supportive monetary conditions, accelerating financial sector reform, and rebalancing global demand. Papua New Guinea, as a small open economy, was able to navigate 1 the negative impact of the global financial crisis and grew by 5 ⁄2 percent in 2009. In 2010, growth prospects remain positive as the economy enters its fourth year of economic expansion. The combination of a stable currency and moderate interest rates is encouraging businesses expansion. Employment is strong, foreign exchange reserve level is high and Government debt is at a sustainable level. The solid performance of the Papua New Guinea economy reflects increased investor and consumer confidence following a period of macroeconomic and political stability. The country has also benefited from a number of important economic reforms the Government has undertaken in recent years to complement its macroeconomic management and fiscal policies. We are also benefiting from the high international prices for our major commodity exports and the commencement of the construction of the Papua New Guinea Liquefied Natural Gas (PNG LNG) project. At the same time, competition has improved the delivery of telecommunication services throughout the country. This is one of our success stories of the past few years. Services such as electronic banking and payment of some utility charges have taken advantage of the impressive take-up by the population of the mobile telephone services. These factors combined have helped the Government to achieve sustained economic growth which has cushioned the economy from the effects of the recent global recession. In terms of trade, Papua New Guinea is benefiting from high commodity prices for its major exports and from inflows for capital investments related to the commencement of the construction of the PNG LNG project. Preliminary balance of payments data for the six month to June 2010 showed an overall surplus of K526 million, compared to a surplus of K664 million in the corresponding period in 2009. This outcome was due to a surplus in the capital and financial accounts, which more than offset a deficit in the current account. The level of gross foreign exchange reserves at the end of June 2010 was USD2,580.5 million, sufficient for 10.9 months of total import cover.

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Inflation however remains a concern due to domestic demand. The annual headline inflation increased to 6.2 percent in the June quarter from 5.0 percent in the March quarter of 2010. The increase was mainly due to the increase in prices of fruits and vegetables, fuel and household equipments. Noting, price pressure from domestic demand is related to the PNG LNG project and Government spending. In coherence our central bank has continued to take a cautious approach to monetary policy. The country’s stable macro economic conditions coupled with the slow pace of economic recovery in the global economy has enabled the Central Bank to maintain its Kina Facility Rate at 7.0 percent for the last six months. At the same time, our financial system remains resilient, well capital- ized with adequate levels of liquidity, low level of non performing loans and highly profitable. In 2009, the Central Bank commenced work on the National Payments project to promote a cost effective and an efficient national and international payment system. In 2010, the central bank also commenced work in partnership with the World Bank on the financial inclusion program to alleviate poverty. Over the last few years, we have experienced the growth of microfinance institutions in making a positive contribution to providing banking services to our rural population. On the fiscal front, the Government recorded a small deficit of K36.3 million (0.2 percent of GDP) in 2009 compared to the fiscal deficit of K478.5 million (2.2 percent of GDP) in 2008. In its Mid-Year Economic and Fiscal Outlook (MYEFO) Report, released on 31 July 2010, the Government projects a revenue surplus of K533.3 million for 2010. This surplus is expected to be spent through a Supplementary Budget later on in the year to meet financial commitments to the development partners and landowners of the PNG LNG project. The Government remains committed to growing and building an economy that is robust and resilient to external shocks. The private sector investment is an integral part of our economic development plans. The country will continue to pursue structural reforms to encourage investments and remove impediments to doing business and investment, thereby promoting a competitive and dynamic private sector. These are fundamentals to reducing poverty, generating income and employment to improve our living standards. The Government will also continue to invest in priority infrastructure projects, district improvement programs, priority areas of education, health and justice and repay Government outstanding debt and other liabilities. Development prospects however continue to remain a challenge for Papua New Guinea. Significant improvements are still required in the provision of education, health, justice services and transport infrastructure. There is a great need to raise the efficiency of utilities which provide important services throughout the country. The Government

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acknowledges these limitations and has formulated a 20-year long-term development blueprint for the country, the Papua New Guinea Devel- opment Strategic Plan, 2010–2030 which underpins the new Medium Term Development Strategy and complements the existing Medium- Term Fiscal Strategy and the Medium-Term Debt Strategy. These initiatives provide a coherent medium term policy framework that sets out our goals and future plans, to achieve the aspirations of our people reflected in the Government’s 2050 Vision. Looking ahead, the country still faces potential risks to its economic outlook. The risks include down-turn in the global economy that could hurt our exports, a depreciation of our currency, especially against the Australian dollar and the managing of the impact of the PNG LNG project on the economy. The commencement of the US$16 billion PNG LNG project has immense benefit to the country. Whilst the project would be a boost to our country, we are also mindful of the limited capacity constraints that may be placed on our economy. There is a need to have long term plans and strong policies on how government funds are utilized and initiatives to encourage broad based private sector growth and to diversify the economy. This is important because our country has a dual economy and over the years, has become increasingly dependent on the mineral sector. The significant inflows from foreign exchange expected from the PNG LNG project will add to the already high liquidity levels in our banking system. This is one of our challenges in the pursuit and maintenance of price stability and the need for adherence to the government’s Medium Term Fiscal Strategy framework to ensure that our people benefit from the development of the project. As a way forward, in June 2010, the joint working group, comprising staff from the Department of Treasury and the Bank of Papua New Guinea submitted its report to the Government for the establishment of a Sovereign Wealth Fund (SWF). Our goal is to find a balance between macroeconomic development and stability, improvement in the welfare of the broader population and the need for effective transparency and accountability in utilizing the revenues from the PNG LNG project. We acknowledge the involvement of the World Bank and the Fund in Papua New Guinea. We remain grateful for the continued assistance provided by the Bank, the Fund and our development partners in terms of technical assistance, funding and advice. Working together, we can ensure our efforts complement each other and are directed in the most effective way for the benefit of all. To end, I would like to express my country’s sincere gratitude to the management and staff of the World Bank and the Fund for their continuous support in Papua New Guinea’s development efforts to promote growth, financial stability and to alleviate poverty.

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PHILIPPINES: CESAR V. PURISIMA Governor of the Bank

Challenges and Opportunities

Reflecting on how the global crisis has progressed, the amazing resilience shown by some developing countries did not come as easy as it may seem. It came from years of discipline and faithful commitment to strong macro-economic fundamentals. This resiliency was a result of hard and painful lessons learned from previous financial crises that hounded a number of regions over the last decades. During the height of the crisis, we observed the crucial role that the multilateral financial institutions played in responding to the varying needs of developing and low income countries. We recognized the assistance provided by the World Bank and other international financial institutions in helping developing countries counter the severe financing constraints brought on by the crisis. With the general consensus pointing to a sluggish global recovery and continued uncertainties, developing countries, such as the Philip- pines, will continue to face significant challenges that threaten our efforts towards regaining the lost growth and development momentum and achieving our Millennium Development Goals. The crisis brings to light many opportunities where the Bank could play a meaningful role in helping guide developing countries overcome economic difficulties. However, playing this role cannot be sustained without ensuring the financial strength of the Bank and enhancing its credibility. In the medium term, we expect the demand for financing and technical assistance from the World Bank Group to remain large and varied. With this in mind, we call for the timely implementation of the Bank’s Voice Reform Program and the underlying General and Selective Capital Increase. We also strongly urge the Bank to maintain a strong balance sheet, to stay focused on its development mandate, and to adopt policies that are truly responsive to the unique development needs of its clients. In relation to the development needs of low income countries, we call on the donor community’s cooperation for a successful replenishment of the IDA 16. In the case of the Philippines, we look forward to the support of the Bank as we pursue our development intervention program to enhance social services to our poor and as we embark on an active Public Pri- vate Sector engagement aimed at addressing the infrastructure gap in the country. We look forward to the Bank’s greater participation in this endeavor through the provision of advisory services and financing arrangements.

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Developed countries have benefitted much from globalization. It is therefore imperative that they also assume greater responsibility in the mitigation of the adverse impact of climate change. In recent years, many vulnerable developing countries have particularly been the victims of the devastation caused by climate change. The Philip- pines, for example, was hit by two super typhoons, a rare natural occurrence, which devastated human communities, wrought extensive damage to urban and rural infrastructure, and caused serious economic disruption. We call on the Bank to actively pursue initiatives towards the establishment of response mechanisms, including a mandatory catastrophe insurance or financing facility, to address the climate change related disasters. The cost burden for such protection should be equitably shared with due consideration to each country’s carbon footprint. In concluding, as we face the emerging challenges ahead of us, we look forward to the leadership of the Bank as a valuable development partner and its renewed engagement with developing members as we pursue our shared development vision.

POLAND: MAREK BELKA Governor of the Bank

I am honoured to deliver this statement on the occasion of Annual Meetings 2010, when we gather to discuss the condition of the world economy in the aftermath of the unprecedented crisis and seek solutions to better protect the stability of global economic system in the future. The financial crisis and the subsequent economic downturn were extremely painful in many aspects and regions of the global economy. Although the crisis started in the financial sector in the developed world, it quickly spread to many developing countries, particularly the ones most connected to the global economy through the channels of trade, investment and workers’ remittances. It put at risk progress made on growth, job creation and poverty reduction. The crisis hit while we were halfway from the Millennium Develop- ment Goals target deadline and its impact on progress toward the MDGs is worrisome. We were reminded of that a few weeks ago at the UN High Level Meeting on MDGs in New York, where the international community confirmed that efforts must be maintained and work continued towards the set targets and commitments taken. The Europe and Central Asia (ECA) Region was one of the regions most severely hit by the global financial and economic crisis. In 2009, twenty out of 30 countries in the Region experienced a decline in GDP. However, it must be noted that the ECA countries are quite diversified

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and the impact of the crisis varied for individual countries. Poland, for example, as one of the top performers succeeded in maintaining a positive GDP growth rate. Poland’s economy has showed a relatively high resilience to the global crisis owing, among others, to a less pronounced than in other countries dependence of domestic economic climate on external demand, a lower share of credit in financing the real sector as well as a relatively stable internal demand. The sustainability of economic growth was also fostered by appropriate macroeconomic policies both before and during the crisis, including monetary policy aimed at maintaining price stability over the medium term under the floating exchange rate regime. Common understanding of the causes of the recent crisis and its scale has prompted politicians and regulators to act quickly without waiting until the situation fully stabilizes. The G-20 patronage gives strong support for the world-wide implementation of the reforms, reducing the risk of regulatory arbitrage. The scope and significance of the projected changes are impressive. The most important proposals include strengthening the capital standards, together with introducing counter cyclical buffers, introduction of liquidity norms and setting up mechanisms to resolve problems posed by Systemically Important Financial Institutions. It is in our common interest to implement the proposed changes with determination. When implementing them, however, we should take into account at least four significant challenges which I would like to briefly touch upon: • immediate regulatory reaction during the crisis, • liquidity norms, • effective enforcement of new regulations, • risk of regulatory arbitrage. The existing regulatory system has been created for decades. Changes were not introduced very frequently and preparations preceding them were carried out at a pace slow enough to allow for prior testing and calibration to avoid undesirable results in the future. It was almost a rule that changes should not be introduced during the time of crisis, when regulators show a natural propensity to adopt an overly restrictive approach, leading to the overregulation of the market. This time the response to the identified causes of the crisis was immediate. It should be remembered, however, that Basel II regulations, the preparations of which had kept regulators busy for several years, had come into force shortly before the onset of the crisis, Even so, regulations concerning own funds have proved insufficient. Regula- tory solutions which are presently being developed come into force when the crisis is over and the situation in the financial market returns

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to normal. Considering the present fast pace of work, maximum effort should be made to avoid the need for another modification before the new regulations of Basel III are fully implemented. The next, and possibly even a greater challenge, will be the liquidity norms. We can profit from the experience of those countries which have already introduced liquidity norms. But it is for the first time that a regulation, not guidelines, addressed to all markets is being developed. The risk of making a mistake is therefore larger and the consequences of errors may surface much more abruptly than it was the case with capital adequacy. It is, therefore, a good thing that both time for testing new solutions and a sufficient transition period are envisaged. Thirdly, the way in which supervisors enforce the regulations is of great importance. Prudential regulations lay down basic principles for banking activity. Curbing excessive risk taking is a task for the banking supervisors and it remains to be seen how effectively they will implement the new regulations and how strict they will be about enforcing them in practice. No matter how good prudential regulations are, they will not produce the expected outcome if they are not effectively applied by supervisory institutions. Therefore, much thought should be given to the methods of ensuring effective enforcement of regulations by supervisors on all markets. The necessity of common observance of regulations brings me to the fourth and final challenge. To make the regulations serve their purpose, i.e. decrease the risk in banking activity, we must ensure that they are universally implemented and respected. Only through their universal application and observance can we protect the level playing field, thus preserving the effectiveness and original rationale behind the regulations. Therefore, we should take every effort to avoid the risk of regulatory arbitrage which occurs if regulations are not implemented in a uniform way.

The financial crisis was a challenging test also for the International Financial Institutions. First and foremost, the IFIs have mobilized and provided financing to countries whose fiscal position was bad. They helped governments use fiscal stimulus and in this way cushion the impact of the global crisis on local labour markets. In addition, the IFIs will become increasingly responsible for the coordination of policies, which is necessary to avoid another crisis and allow policy makers to respond quickly to emerging threats. The Mutual Assessment Process which collects information on current and future policy plans, is a good example of such an activity. A joint cooperation between major economies, supported by International Finan- cial Institutions, will strengthen the global economy, help reform the

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labour market, make the banking sector safer and alter growth models so that they lead to sustainable growth. The crisis has clearly demonstrated that the World Bank and the Fund should continue to adjust their governance to the changing conditions in the world economy in order to enhance their effectiveness and capacity to deliver. We strongly believe that modernizing IMF governance as well as the Fund’s Mandate will improve the Fund’s credibility, legitimacy and effectiveness. Recent developments in the global economy have clearly highlighted the need for improving global financial safety nets. There- fore, we welcome the IMF’s efforts to strengthen the Fund’s crisis prevention role. With the expanded crisis prevention toolkit, the Fund will be better equipped to help detect a risk of financial crises in the future. We also appreciate that the World Bank Group has been learning from the crisis experience by developing a post-crisis directions strategy as well as taking on board a package of internal reforms aimed at modernizing its institutional strategy, structure and operations. Inter- nal modifications and adjustments are crucial to help sustain and enhance the WBG effectiveness and relevance in the post-crisis world. There is no doubt that in the aftermath of the financial crisis, a fundamental challenge for policymakers will be to sustain a solid global growth. The crisis response underscored the importance of international cooperation and effective multilateral institutions in this regard. With global mandates and memberships, the WBG and the IMF should play key roles in efforts to make the world economy more resilient to another crisis.

SIERRA LEONE: SAMURA KAMARA Governor of the Bank (on behalf of the African Governors)

Introduction

After a sharp decline in growth in 2009, Africa’s recovery now seems well underway. Africa has exhibited substantial resilience during this global recession, and has emerged from the crisis faster and more robustly than in the past and relative to most other developing regions. In addition to the global recovery, driven by developing Asia and expansionary policies in advanced countries, strong commodity demand and prices have played a key role in the revival of continent’s exports. While some factors driving Africa’s recovery have been external, the positive outcome to date has been mostly due to the good policies that countries implemented before and during the crisis. Prudent macroeconomic policies prior to the crisis, especially fiscal consolidation, as well as improved institutions of macroeconomic management

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provided space for fiscal stimulus initiatives. The financial support from IFIs, including the IMF and the World Bank, also played an important role in preventing large pro-cyclical fiscal cuts. In some of our countries, improvements to business environments helped relieve structural bottlenecks. In others, government interventions stimulated agriculture and the overall private domestic demand. Timely and effective mea-sures that many African countries were able to adopt demonstrated the strengthened quality of their institutions.

Outlook for Africa amid weak global economic recovery

Despite the positive outcomes to date, our countries continue to face multiple challenges and constraints as substantial risks remain and have been only exacerbated by the recent turmoil in European countries. The projected growth for 2010 and 2011 remains below the trend in most countries, as increased trade and financial linkages with Asia will not compensate for subdued demand from the advanced economies due to deleveraging and fiscal consolidation and increased cost of credit. The ongoing debt problems in Europe have only height- ened the uncertainties surrounding the global recovery. The increased cost of financing would only reduce further the post-crisis trend growth. While the macroeconomic policies adopted by African countries prior to the crisis served them well overall, the long lasting impact of the crisis on the development trajectories of our countries cannot be ignored. Our governments still need to maintain healthy balance between short run stabilization and achieving high long-term growth within the framework of maintaining supportive macroeconomic policies and structural reforms. Going forward, it will be increasingly challenging for African countries to continue securing financing from both public and private sources as advanced countries embark on fiscal consolidation, amidst anemic recoveries. A number of African countries during the crisis had to resort to concessional borrowing, particularly from the IMF and the WBG. Several major economies received generous stimulus packages from the IMF to compensate for the loss in export revenue and remittances from weak trading partners. Some of this assistance came in the form of budget support from WBG financial resources. The challenge remains how the BWI can continue to help these countries with their debt prospects if the crisis stays with us for some time and should our countries need to borrow more to finance their recovery. Africa and other LICs have the potential to contribute to stronger and more balanced growth, and should be viewed as markets, offering new opportunities for investment, trade and business. Therefore, it will be important for advanced countries to take into account the impact of

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their policy actions on low-income countries (LICs) as an integral part to their broader objective of achieving strong, sustainable and balanced growth and ensuring a more robust and resilient global economy for all. Economic recovery in developing countries depends on the deployment of domestic policies and instruments, such as, prudent fiscal policies, social safety mechanisms, and subsidies, enhancing productivity in real economic sectors, foreign reserve and debt management. However, these measures are necessary but not sufficient. Developing countries recovery depends on economic revival in developed economies which is a major factor for resumption of commodity imports from developing countries and remittances. It will also be important for advanced countries to ease their trade barriers facing imports from developing countries. Additionally, if we are to make poverty a history, the agriculture sector will need to get a prominent role. The farm-support programs of the world’s richest nations and cheap cotton dumped on the world market are undercutting African exports, choking economic development and stymieing efforts to end Africa’s cycle of poverty. As Africa tries to find its niche in the world marketplace and tries to succeed in building up a functioning agricultural sector, it will be crucial for advanced countries to pursue a more sensible policy regarding agriculture that brings about deeper cuts in subsidies. This issue is far too crucial for Africa’s development to be put aside.

Rethinking Africa’s development strategy

The global crisis presents opportunities for our countries to rethink their development strategies, diversify our economies, and explore new markets as we examine the best options for accelerating economic growth and reduce poverty. In particular, there is an urgent need to developing and deepening regional and domestic markets central for increasing our countries’ resilience against exogenous shocks, to generate employment, unlock Africa’s untapped potential and sustain pro- poor growth. The main constraints to this lies in closing Africa’s large investment financing gap. To this end, support from the BWIs will be crucial in our efforts to increase regional trade by developing and improving Pan African corridors and networks in areas of infrastructure to achieve the broader objective of Africa-wide integration in all sectors. Garnering support to our countries in their efforts to accelerate Africa’s agricultural transformation from subsistence to small-scale farm units to commercial large scale and exports through development of the whole agricultural value chain. To this end, we call on our development partners to support a stronger replenishment of IDA 16 to set the WBG Group on solid financial footing and to establish a mechanism whereby scaling up of

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resources will be possible in the event our countries are confronted with a crisis such as the current one.

Quota reform

We reaffirm our welcome to the commitment of the G20 leaders and the IMFC to a fast-track new round of quota and voice reform. We realize fully that achieving these objectives is a daunting task, given the intensity of engagement required and the need for a spirit of compromise from all parties and we are confident that there is political will to achieve an ambitious outcome. We appreciate IMF’s commitment for the protection of the quota shares of the poorest countries. However, having lost quota shares across the board during the second round -the 2008 Quota and Voice reforms-by an average of 6-10 percent, another round of even deeper losses in quota shares would be detrimental to the prospects of our countries accessing Fund resources that they depend on to meet their financing needs. We, therefore, welcome the emerging consensus to protect the quota shares of each of these countries at the post-second round level. We strongly urge that such protection be at country level, covering all PRGT- and PCDR-eligible countries. We recall that the majority of small middle-income countries in Africa, the Caribbean, Central America and the Pacific also incurred substantial losses in quota shares during the second round, and are bound to incur another round of deeper losses under the current review. We also recall that the quota shares of South Africa would be reduced after a significant reduction during the second round. To ensure that these countries also remain undiminished partners, we call for protection of their quota shares also at the second round level. We are aware that reaching these targets has been severely con- strained by the decision to use the current quota formula as a basis for realigning quota shares. We would have preferred that an amended formula is used for the current round of quota review. To enhance legitimacy of the Fund as a rule-based institution, the quota formula should not be used again until it is substantially reviewed in line with the Governors’ Resolution of 2008.

Conclusion

In conclusion, the challenges facing Africa are still numerous, but we can surmount them with continued effective support from the BWIs as well as other development partners. We reaffirm our commitment to work with the IMF, WBG, development partners and the rest of the international community to attain our development objectives.

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SOUTH AFRICA: PRAVIN JAMNADAS GORDHAN Governor of the Bank

The global financial crisis illustrated the effectiveness of coordinated, effective action when there is common will. We are quickly slid- ing back, however, into a pattern of uncoordinated, unilateral policy-making. The global financial crisis should not be seen as an iso- lated reason to come together, but as a reminder of our interdepend- ence in regulating markets and financial systems. International coordination is best achieved through global institutions and forums, and is crucial if we are to lay the foundation for strong, sustainable and balanced growth. In this regard, the reform of the Bretton Woods Institutions, and successful implementation of the G20 Framework is essential if we are to manage future risks and maintain momentum for an economic recovery. We support a global agreement on exit strategies, which takes into account the potential impact on capital flows to emerging market economies, and believe financial supervision and regulation reforms must proceed as planned to regain confidence in the financial sector. Improving the balance sheets of financial institutions, especially in advanced economies, is also critical. We urge all members to resist the tendency toward protectionism and continue efforts to promote free and fair trade. In South Africa, growth for the medium term is expected to return to trend as a result of the success of the countercyclical monetary and fiscal policies implemented in response to the global financial crisis. By 2012, we expect South Africa to grow above 3.5 percent. However, due to the uncertainty of the global economy, the sustainability of South Africa’s recovery is not certain. Policies have been implemented to support growth and increase employment, and extend services to the vulnerable. However, given the pressure on government finances as a result of the financial crisis, government debt is projected to peak at 44 percent of GDP in 2015–16. Additional measures will need to be put in place to encourage investment and increase savings rates. Overall, South Africa remains in a strong fiscal position enjoying comparatively low debt ratios and a sustainable fiscal deficit over the medium term. A number of African economies showed remarkable resilience during the financial crisis. However, there are risks going forward and the sustainability of the recovery is far from assured. Risk aversion and a flight to investment safe havens affect Africa adversely. The lack of private credit sources places more pressure on the public sector as the spender of last resort. Despite having weathered the storm of 2009 well, Africa has little fiscal room to maneuver. Economic growth is returning back to trend,

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but it is a trend seen in the pre-crisis era. The SSA region is the only region that will not reach the UN goal of halving poverty by 2015. African economies will have to grow and invest more while sustaining programmes of economic diversification. The challenges ahead are daunting. Regional integration in Africa remains elusive. Economic growth has not been accompanied by an increase in productive employment, while 6–7 million young people enter the labor force every year. Agriculture can still play a crucial role in reducing poverty but it is not increasing its productivity fast enough. Delivery of basic services continues to fail the poor due to weak governance and public sector capacity. Poor infrastructure and business regulation are also weakening Africa’s competitiveness. Furthermore, the 2009 global economic crisis has eroded some of the small gains that had been made in Africa. In terms of infrastructure, progress has been made in the Information and Communications Technology (ICT) area and Africa now has 200 million mobiles users. In education many countries are on track to achieve universal primary education by 2015. The agricultural sector is growing by 4 percent a year and the Bank is scaling-up its financing to this sector. This progress has been credited to an increasing development partnership between the World Bank and new development partners such as China, India, and some private foundations focusing on Africa. It is essential African governments adopt strategic policies that will seek to fundamentally change the economic structure of their economies, to improve the industrial and agricultural competitiveness of the continent. Given these realities, maintaining prudent fiscal and monetary policies are inadequate to reducing poverty and averting social instability. The continent needs both structural and microeconomic reforms. It is time that the international community recognizes that Africa is an essential part of the global economy. Its minerals and energy resources are vital to global growth. Ultimately, stability and prosperity on the continent would be to the benefit of all.

SPAIN: ELENA SALGADO Governor of the Bank and the Fund

International Economic Outlook

Today we are still facing a challenging time for the global economy, where recovery remains fragile and uneven. After a stronger-than- anticipated recovery in the first half of 2010, led by the emerging (and especially the Asian) economies, growth is likely to ease to some extent in the second half of the year. In fact, the slight improvement is far from widespread and its success is by no means guaranteed. Financial

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markets remain weak and are not functioning normally, credit is not flowing smoothly to the economy, unemployment has reached high levels in many countries, and the balance sheets of economic agents— both in the real and in the financial sector—have not been fully restructured yet. Achieving stronger and more sustainable growth will depend on the ability of private demand to recover, on the restructuring of the productive sector in some advanced economies and on the ability of emerging economies to move toward growth that is more based on domestic factors.

Economic Policy

In this context, our policy decisions must reconcile the necessary adjustment in the medium and long terms with a short-term outlook in which growth remains challenging and the social costs of the crisis are substantial. Furthermore, there are additional difficulties deriving from the high level of global uncertainty, the magnitude of the challenges ahead, and the fact that the broader impact of our decisions calls for an international effort to coordinate our policies on a much more far-reaching and complex scale than ever before. At the same time, however, we should recognize that the strengthening of the institutional framework of the global economy that the crisis itself motivated is a key tool for laying the groundwork for better-balanced and more sustainable growth. Regarding monetary policy, I concur with the IMF’s message that maintaining a monetary policy of low rates for a while will facilitate the necessary rebalancing of public and private demand. However, we need to remain vigilant to the possible indirect effects of this monetary orientation on the economy and the return of financial markets to a more normal functioning. Capital flows to emerging economies and pressure on exchange rates and asset prices constitute a new challenge to economic and financial policy that needs to be dealt with in a coordinated manner. To ensure that the financial system can play its proper role in growth and employment once again, we must take action in three areas. First and foremost, we must ensure that all financial institutions are solvent, by supplementing cleansing and restructuring efforts where necessary. Second, we must persevere with the implementation of financial reform, adopting a regulatory and supervisory framework that addresses the market failures exposed by the crisis. And third, we must restore the principles of free markets and unrestricted competition in the financial industry, principles which have been compromised by the necessity for public intervention. With respect to the key challenge of financial reform, vital steps have been taken, as evidenced by the Basel III Accords. Now is the

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time to complete other ongoing initiatives. I am referring in particular to measures pertaining to the operating framework for financial markets (infrastructure, derivatives, and rating agencies), crisis resolution mechanisms, and the design of a framework for supervising and regulating systemically important financial institutions. The latter framework must be strong and consistent in order to prevent moral hazard and regulatory arbitrage. Last but not least, all these efforts will be in vain unless the rules are equally enforced at all financial centers. Here, we have confidence in the work of the Financial Stability Board and in the political will of all of the stakeholders involved.

Spanish Economy

In line with the global recovery, as well as the recovery of other countries in the euro zone, Spain’s economy is showing signs of improvement. Although domestic demand remains hampered by the need to adjust household and corporate balance sheets, the main economic indicators moved into positive territory in the first half of the year. GDP in quarter-on-quarter terms grew moderately during the first two quarters of 2010, driven by the recovery of private consumption and investment in capital goods. This ended a streak of six quarters of negative growth. This trend is in line with the government’s macroeconomic scenario which envisages a gradual recovery. Notwithstanding the quarter-on-quarter growth, however, we expect 2010 to end with a year-on-year rate that remains slightly negative for the year as a whole. For 2011, we are projecting a more dynamic recovery that will allow for moderate growth in employment, paving the way for a reduction in the high unemployment rate. This will also help to cut the public deficit while enabling us to achieve our objectives under the Stability and Growth Pact. Job creation and deficit reduction are our two priorities, as we are aware that without fiscal sustainability, it is not possible to achieve growth and lower unemployment in a sustained fashion. The Spanish private sector is correcting the imbalances that accumulated during the earlier expansion. This process is already well underway, as made clear by the high financing capacity of the private sector (6 percent of GDP in 2009). The household savings rate has reached 18 percent of household disposable income; this will enable households to boost their consumption even as they bring down their indebtedness. Businesses have also rebalanced their positions and are reducing their leverage. In this way, households and businesses will contribute to a gradual increase in private demand, which will be complemented by a positive contribution from the external sector. The financing needs of the economy have fallen by half already and will continue to decline, albeit more gradually. At the same time, far-reaching sectoral shifts are

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unfolding within the economy, including a lesser weight of the real estate sector, and a more prominent role for the tradable sectors. This process will help to bring about lasting improvements in the productivity and competitiveness of our economy. This rebalancing in the private sector is taking place hand-in-hand with fiscal consolidation. The strong tensions in financial markets in 2010 have considerably affected Spain’s economy this year. The government responded swiftly and resolutely, frontloading deficit reduction and giving an ambitious push to structural reforms, which is in turn rebuilding market confidence. We are convinced that, in the present context, the beneficial impact in terms of confidence will offset the negative impact on growth from curbing public expenditure. Further- more, the sustainability of government accounts and structural reforms are laying the groundwork for sustained growth in the medium and long terms. The restructuring of the financial sector and the reform of our labor market are two of the most important initiatives adopted to increase our growth potential. Similarly, we have eliminated bottlenecks in the services sector and introduced fiscal adjustments to correct the existing distortions in the housing sector. We are also continuing to work on further reforms in the areas of pensions, energy policy, and the transfer of technology. On the fiscal side, the measures taken in May represent a significant cut in expenditure, including, among other measures, a 5 percent wage reduction for civil servants, the control of expenditure on pensions, and a decrease in public investment (after several years of great efforts in this area), will enable us to achieve our objective of narrowing the deficit this year. For 2011, the Budgets recently submitted to our Parlia- ment provide for further austerity measures that will ensure we meet our overriding priority objective of reducing the deficit to 6 percent of GDP in 2011, in line with our adjustment path until we attain a deficit of 3 percent in 2013. This fiscal consolidation process will also facilitate a downward revision of the forecast for public debt, which is estimated at 68.7 percent of GDP in 2011, or 20 points below that of our partners in the euro area. Spain is thus demonstrating its ability to meet its commitments and create a positive climate for a sustainable recovery.

IMF Agenda

The International Monetary Fund has continued making progress over the past year as it adapts to the new challenges it has faced as a result of the international crisis. First, although work remains to be done in this area, I consider a success the strengthening of the Fund’s surveillance work through the

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more widespread use of its assessment of financial system sustainability in the principal countries. We support whatever efforts it makes in that regard. I encourage the Fund to work with the Bank for Interna- tional Settlements and the Financial Stability Board in all the fields of global financial supervision. The improvements recently introduced in financial support instruments and programs are also important and strengthen the Fund’s ability to provide the member countries with insurance tools that give them the confidence to face any future crises and to respond in a flexible, appropriate way to the needs of each country. Increasingly, however, the legitimacy and effectiveness of the IMF depend on a comprehensive reform of its governance structure, so that it can adapt to the new global realities and give appropriate recognition to the weight of each economy on the international stage. A cen- terpiece of this approach is, of course, the reform of the quota structure, which should allow for a considerable increase in the weight of the most under-represented members and so fulfill the mandate given by the International Monetary and Financial Committee to its members a year ago, in Istanbul. It is well known that Spain is one of the most under-represented countries in the IMF, both in terms of voice and of representation; our current quota reflects neither the weight nor the role of Spain in the world. I feel confident that this situation will be satisfactorily remedied in the process in which we are currently involved.

World Bank

Let me refer now to the World Bank agenda. With only five years to go before the deadline for achievement of the Millennium Develop- ment Goals, and after the setback resulting from the recent international financial crisis, it is now more than ever that however that we focus on achieving results. The International Development Association (IDA) is taking steps in the right direction, focusing increasingly on its impact on the development of countries and perfecting its system for measuring results. IDA will thus become an increasingly efficient tool for poverty reduction. It is therefore crucial to ensure the success of the Eighteenth Replenishment of IDA, currently under negotiation. For its part, the World Bank has played a key role in ensuring that the developing countries have greater resilience when dealing with the recent global financial crisis, not only through its counter-cyclical response over the past two fiscal years but also thanks to its qualitative aspects, in particular the support it has provided to countries in designing their economic and social policies.

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Still, there is room for improving the counter-cyclical support provided by the IDA to its client countries. We therefore welcome the creation of a crisis response facility as a means for providing timely assistance to countries affected by exogenous crises. Over the past two years, it has been demonstrated that the multilateral financial institutions have to fulfill a significant counter-cyclical role. Accordingly, we feel that this new facility will be an important milestone in the IDA replenishment under negotiation. We are also pleased to see that the Bank is moving forward with the launch of the new post-crisis strategy that was agreed in April of this year, as well as with the introduction of various internal reforms that affect its instruments, processes, and organizational structure. These will make the Bank even more effective in the implementation of its strategy and in meeting the needs of its clients. Those reforms should be accompanied by an improvement in the governance of the institution, striking a balance between agility in the service provided and the accountability of the decision-making bodies. In closing, I wish to reiterate Spain’s support for these two institutions and emphasize our readiness to make progress decisively in the reforms we have before us, reforms that will no doubt enable us to improve the necessary coordination of our economic policies and so help ensure high levels of sustainable growth in the future.

SRI LANKA: SARATH AMUNUGAMA Governor of the Bank and the Fund

When we met last in Washington we saw signs of recovery in global economic activity. But we were uncertain about the pace of recovery. We were concerned that the recovery may be slow and protracted. Unfortunately, uncertainties on the pace of recovery still remain at the present time. Countercyclical fiscal stimulus packages have raised fiscal and debt vulnerabilities of many countries. Yet unemployment remains unacceptable at high levels. We are concerned that slow recovery and high unemployment may increase pressures for more protectionist policies in advanced countries. Such a development could have adverse consequences on both advanced and emerging market economies. We welcome initiatives taken by the IMF by way of introducing a new Precautionary Credit Line and reforms to the Flexible Credit Line. Both measures have strengthened crises prevention instruments available to member countries. Making the Financial Sector Assess- ment Program (FSAP) mandatory for systemically important countries and the IMF-FSB Early Warning Exercise would help identify vulnera-

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bilities early and prevent spill-over effects. We also welcome the World Bank’s enhanced financing under zero-interest in the areas of health, education and agriculture to help developing countries. As regards the forthcoming quota reform we strongly support governance reforms of the IMF in order to enhance the legitimacy and credibility of the IMF through an increase in the voice and representation of emerging market and developing countries (EMDCs). In the 2008 quota reforms, several EMDCs like Sri Lanka agreed to reduce our share in a spirit of compromise with the expectation of at least a shift of 5 to 6 percentage points from advanced economies to emerging economies. We sincerely hope that the next shift of quotas will not come at the expense of quota shares of the other EMDCs. Mr Chairman, let me now turn to my own country, Sri Lanka. After the ending of a three decade long war against terrorism, my government under the leadership of His Excellency the President Mahinda Rajapakse, has given the highest priority to building a lasting peace, to healing wounds of war, ensuring economic prosperity and guaranteeing the rights of all our citizens. In order to fulfil these aspirations, we strongly believe that economic development and political reconciliation must go hand in hand. We believe that for the rebuilding and healing process to succeed we must begin from within. In the words of the Buddha we must be a lamp unto ourselves. Accordingly, a Lessons Learnt and Reconciliation Commission have been established. This independent Commission, comprising eight Sri Lankans of eminence and stature, has already begun its work. Over 90 per cent of the IDPs have already been resettled in their original villages where landmines have now been cleared. They have been provided the infrastructure necessary to resume normal life. It is fair to say that this effort has been acclaimed by the international community. The rebuilding of the war torn Eastern and Northern provinces and their integration with the rest of the country has significantly increased the country’s growth potential. Our economy is well on the way to realising the peace dividend. We are experiencing a steady and sustained growth during the last quarter of over eight per cent, moderate inflation and low interest rates. Dur- ing the last five (5) years, we saw our per capita income doubled. It is our ambition to take this further; to double yet again the present per capita income by 2016. Recent developments reinforce the growing confidence in Sri Lankan economy and its positive macroeconomic outlook. All Interna- tional rating agencies have upgraded our sovereign ratings. In terms of

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Global Competiveness Indicators published by the World Economic Forum, Sri Lanka has gained 17 places to rank at 62 during the year, which is the second highest improvement by any country during 2009–10. The Colombo Stock Exchange became the best performing market in the world based on performance so far in 2010. I am also happy to note that Sri Lanka is a leader in realizing the millennium development goals, well in advance of the targets set by the United Nations. The vision of my government aims at positioning Sri Lanka as a maritime, aviation, energy, knowledge and commercial hub in the region. Developing sound infrastructure at the national, provincial and rural levels is vital for realising our vision. Towards this end, we are focussing on putting in place the necessary public infrastructure and strengthening the enabling policy environment for the private sector to enhance its role. We have benefited substantially from assistance extended by the IMF, World Bank, Asian Development Bank, UN agencies and several other bilateral donors. It could be said that we are a global model for such productive cooperation. We look forward to continuing these partnerships in the day ahead.

SUDAN: ALI M. ABDELRASOUL Governor of the Bank and the Fund

Economic Performance

The period 1998–2009 witnessed the highest and longest growth episode in the history of Sudan. Averaging 8% per annum, the gross domestic product (GDP) supported higher per capita income, and prudent macroeconomic management decelerated inflation to a manage- able level and reduced the current account imbalance. However, the global crisis significantly undermined Sudan’s social and economic development and progress towards the MDGs.

Peace Building

The political leadership deserves credit for committing to peace and democracy. The government signed a comprehensive peace agreement (CPA) that ended decades of internal fighting, and gave way to self- autonomy in southern Sudan. Implementation of The CPA is well advanced, and will be concluded in January 2011 with a referendum which would allow the citizens of the southern region to choose between staying in a united Sudan and seceding.

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Political Progress

Moreover, in transitioning to multi-party democracy; general elections, the first after more than twenty years, have brought to power elected federal and state governments and parliaments. Not only that, but a decentralized system has also been entrenched with more devolu- tion of authorities to the states.

Debt Distress

Regrettably, the picture is not invariably rosy. With about thirty-six billion US dollars in foreign debts, mostly in past due arrears, Sudan is severely debt-distressed and its development is quite vulnerable. Due to debt arrears, Sudan has been deprived from any concessional financing from the international organizations. This financing is considered to be vital to prop up its development and poverty reduction efforts. Not even during the recent global crises has Sudan received any support. While eligible for debt relief under the highly indebted poor countries initiative (HICP), the country has not been able to access these vital resources due to unfair political pressures. Ironically, this happens despite strong commitment to economic and structural reforms for more than a decade, and good track record that is recognized by the IMF. Should the lack of international support persist, particularly for debt relief, peace, progress and development will never be consolidated despite limited oil revenues. Vulnerability to external shocks, as well as risk of falling back into conflicts will remain high. On September 24th, 2010, the United Nations Secretary General convened a High Level Meeting on Sudan attended by fourteen Heads of States and Governments and sixteen ministers beside other dignitaries. The summit issued a communiqué urging all the development partners to support peace in Sudan. In his speech, the President of the US clearly stated that fulfilling obligations will lead to improved relations between Sudan and the US including supporting agricultural development; expanding trade and investment; exchanging ambassadors; and eventually lifting sanctions. Noteworthy, Mr. Obama also urged the international community to support the peace in order for the people of Sudan to reap its rewards in terms of schools for the children, homes and farms for the families, trade and exports of goods, and elevated standard of living. The stakes are high, and the people of Sudan believe that the moral imperative for the international community is to step up to the plate to assist Sudan in consolidating its peace and development, and avoid falling into the violence trap. It is in that vein that we urge the Breton Woods Institutions to be vigilant to seize the opportunity to re-engage

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and normalize fully their relationships with Sudan by providing technical and concessional financial aid from IDA, IFC, MIGA and IMF’s various facilities. This can only be possible after availing debt relief to Sudan on equal footing with the African countries who have received support long time ago.

SWITZERLAND: PHILIPP M. HILDEBRAND Governor of the Fund

The global recovery is ongoing but remains fragile. It is not yet self- sustained. The immediate policy priority is to strengthen sustainable growth. What is needed is a double rebalancing: an internal rebalancing from public to private demand, and an external rebalancing between current account deficit and surplus countries. The scope, nature and timing of policy responses will vary across countries. A delicate balance must be struck between sustaining aggre- gate demand in the short run and laying the foundations for prosperity and stability in the long run. Many countries emerge from this crisis with high debt burdens, and many central banks have yet to exit from nonconventional policy measures. Firm commitments to long-term fiscal consolidation and price stability are essential. Ongoing financial sector reform is a second policy priority. Unprecedented international cooperation has led to ambitious global minimum capital and liquidity standards, which must be implemented across all major jurisdictions. But more regulatory reform is required. In particular, the too-big-to-fail problem remains unaddressed. Switzerland has made a set of concrete proposals in this regard. I hope they can serve as a constructive input for the upcoming G-20 meetings. I welcome the IMF’s efforts in strengthening its financial sector surveillance. Switzerland was one of the first countries to participate in Financial Stability Assessments. We have supported a full integration of such assessments into the IMF’s surveillance for some time. The IMF-in close cooperation with the FSB-is well placed to monitor progress on regulatory reforms in the financial sector with a view to creating a level playing field in regulation. The reform of Fund governance is clearly an important topic of these meetings. Switzerland is ready to play its part. But the reforms must lead to real change, the process must be transparent, and the outcome must reflect the Fund’s mandate as a financial institution.

The World Bank Group

On the World Bank side, the Post-Crisis Directions approved in Spring provide the framework for strategic guidance. Going forward,

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effective implementation will be key, and the Bank must be more selective and focussed on its comparative advantage. The International Development Agency has a special role in the development architecture. It provides a robust facility to mobilize concessional resources and to address global and regional challenges. Delivering results will be essential. A successful replenishment—with a mutual commitment and joint efforts from traditional donors, emerging donors, and the World Bank Group—is crucial. The internal reform agenda of the World Bank has made much progress. Looking ahead, what is important is (i) a realistic timeline for the implementation of the agenda, (ii) its consistency with the post-crisis framework, and (iii) appropriate administrative budget allocations. Finally, on governance reforms, much has been accomplished in the past two years, for example the formal establishment of the 25th Chair at the Board of the World Bank. The standing and legitimacy of the World Bank requires a robust corporate governance. I look forward to continuous progress in this important area.

THAILAND: KORN CHATIKAVANIJ Governors of the Bank and the Fund

It is my great privilege on behalf of the Government of Thailand to address the 2010 Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund.

Global Economy

In the aftermath of the global economic crisis in 2009, the world economy is recovering at a much faster pace than what had been previously expected. Nevertheless, the world economic outlooks still remain uncertain, and downside risks stemming from fiscal fragilities and volatile capital flow have come to the fore. To sustain the recovery, all countries must join hands in supporting and safeguarding the global economy. The key challenge is to balance the need for continued government support while keeping the concern on public debt sustainability in checked. Therefore, at a global level, policies should focus on implementing credible plans to lower fiscal deficits over the medium term while maintaining supportive government policies, accelerating financial sector reform, and rebalancing global demand. The role of the International Financial Institutions (IFIs) is a vital source of the best global expertise, cutting-edge knowledge, and a range of financing innovation to meet pressing development priorities in 2010 and beyond.

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Thai Economy

Thailand has recovered from the global economic crisis of 2008– 2009. Our economic recovery was due to the pickups in domestic and global demand as well as the timely implementations of the government stimulus early at the onset of the crisis. The positive results are attributed to the high economic growth of 10.6 percent per year during the first half of the year, double digit year on year improvements, coupled with the rebound in export and also the level in private investment and consumption. In fact, we project that our economy will expand within the range of 7–7.5 percent in 2010. Nevertheless, there is a need to remain vigilant to downside risks such as the capital inflows and asset bubbles. In the short term, we will continue to pay close attention to the effects of the economic and social problems caused by the global financial crisis of the past two years. We foresee positive growth for 2010 as a whole. Moreover, our government would like to extend financial services to lower-income group and promote micro finance to the rural communities. However, simply providing financial access to the poor is not enough, and help is also needed in terms of knowledge and financial management to assist villagers about basic household financial planning and accounting.

Regional Economic and Financial Cooperation

Along with economic priorities given to boost domestic demand, Thailand still endeavors to enhance its role and commitment to our regional economic and financial cooperation. We believe that only by working together can the individual countries of ASEAN fulfill their individual potential. ASEAN is determined to enhance regional financial stability through the ASEAN+3 regional initiatives such as the Chiang Mai Ini- tiative Multilateralisation (CMIM) and the Asian Bond Markets Initia- tive (ABMI), including the establishment of the Credit Guarantee Investment Facility (CGIF). This will help deepen financial integration and enhance intra-regional trade and investment. On further enhancing the regional financial cooperation, we urge the IFIs to explore possible ways to enhance synergies between regional initiatives such as the CMIM and IFIs financing facilities.

Reform of International Financial Institutions (IFIs) IMF

On Fund matters, we welcome enhancements made to the Flexible Credit Line (FCL) and the creation of the Precautionary Credit Line

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(PCL), both of which would support future crisis prevention. We also look forward to further enhancements in the Fund’s financing toolkit that will serve the need of members in the midst of volatile global capital movement. In particular, most members of the Fund do not currently face financing problems—but their policy challenges relate to managing capital flows given the multi-speed global recovery. As the Fund has a broad and deep perspective on this important issue, we hope that the Fund will engage with members in providing practical advice supported by in-depth research on ways to cope with this important challenge. That said, there are much bigger matters that require urgent attention. In particular, we strongly encourage the Fund to expeditiously conclude the Quota Review that will concretely increase the voice and representation of emerging market and developing countries (EMDCs), while protecting those of low income countries. Looking back, these calls have resonated continuously yet progress has been slow, resulting in the continued under-representation of many dynamic economies. Going forward, the relevance of the Fund in safeguarding the stability of the international monetary system depends crucially on the effectiveness of the Executive Board on the one hand, and the credibility of the Managing Director through merit-based and transparent selection process on the other.

World Bank Group

We appreciate the excellent work that the World Bank Group has done during the crisis—the triple of IBRD lending, the innovative financing by IFC and the accelerated assistance by IDA—which played a significant role in mitigating the adverse effect of the crisis. We welcome the progress on the Bank’s efforts to implement the internal reform agenda designed to modernize the World Bank Group’s services on the experience and learning from its crisis. We believe this reform program will enhance the best expertise and quality global knowledge to the clients. We acknowledge the governance structures of IBRD and IFC reform and the improvement of accountability framework between shareholders and the organization including the implementation of the 25th Chair for DTCs and the Access to Information Policy. This reform will improve the efficiency and effectiveness of its governance and enhance the World Bank group as a global development institution. After the reforms, we expect the World Bank Group to exercise strong leadership in promoting the development, growth and poverty reduction in developing countries and addressing global issues, with

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close collaboration with donor countries and other international institution. In addition, we will be pleased to endeavor to work closely with World Bank group under the new Public Sector Reform Development Policy in the very near future. Finally, Mr. Chairman, the replenishment of IDA comes in a hard time. Many donor countries have faced significant fiscal constraints. At the same time, our poorest members have been affected by the crisis and that have adversely impacted their progress toward meeting the Millennium Development Goals. We urge that donor countries double their efforts to satisfy the IDA 16 financing needs.

TIMOR-LESTE: EMILIA PIRES Governor of the Bank and the Fund

Two years after emerging from the 2008 global financial crisis, world conditions have become no less complex, crossing continents and regions, affecting both the developed and the developing. Now, there is even a greater sense of urgency in addressing the challenges inherent to the growing demands of economies struggling through recovery while facing even more critical and complex challenges. We are witnessing a turning point in our history, where by necessity there is a demand for nations to avoid unilateralism in favor of collectivism in policy making for challenges from accelerated industrializa- tion over the last century. We have now shifted from addressing ailing markets and collapsed financial systems to addressing much more serious consequences; nations facing financial collapse and currency challenges; reactionism has substituted the fundamental policies needed for market stability and global equilibrium. Amongst those most crucial issues to address: foreign exchange policies to regulate a more stable forecast and international banking policies, which is necessary if we are to avoid increased poverty. The 2008 crisis plunged additional millions of global citizens into extreme poverty. Meanwhile, the demand for energy is no less critical. Food prices have once again surged, for the last quarter of 2010, wheat prices have risen 60-80% and maize has risen on average 40%. Against the natural disasters in regions such as Haiti and Pakistan this year, not atypical of developing regions which incur 97% of natural disaster related deaths, the global community is faced with responsibilities of epic proportion to ease human suffering while attempting to defer future potential loss caused by climate change. This is the reality of 2010 which many have noted is unchartered territory requiring innovative solutions cross border and boundaries. In 2010, recovery is slow and unbalanced; massive public spending in 2009 has caused alarming rates of debt in many countries. As a

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result, future restricted public spending brings to the forefront not only economic challenges but impacts significantly on social conditions. This is a predicament many developing countries have experienced for decades. In the spirit of collectivism, a new global forum has been established, called the g7+, which Timor-Leste has been nominated to lead. The g7+ includes seventeen fragile and post conflict countries and regions including Afghanistan, Burundi, the Central African Republic, Chad, the Democratic Republic of Congo, Ethiopia, Guinea Bissau, Haiti, Ivory Coast, Liberia, Nepal, Papua New Guinea, Sierra Leone, Solomon Islands, Somalia, the autonomous region of Southern Sudan, and Timor-Leste. The aim is to share experiences and lessons learnt for the purpose of formulating effective policies that will contribute to the global community for better outcomes and solutions, help reduce poverty, accelerate the attainment of the MDG goals and contribute in deterring conflict which costs the global community hundreds of billions of dollars per annum. The g7+ members are the countries and regions most acutely aware of urgent action and reaction to rapidly changing circumstances within politically charged environments and acknowledge the only solutions are those which generate from constructive dialogue. This approach has brought a new level of stability to Timor-Leste which fostered new conditions, in-country. In 2007, one out of every two citizens in Timor-Leste lived below the poverty line. In spite of the reported $8 billion in aid spent on Timor-Leste since 1999, poverty had doubled in some of our regions to reach the national average of 49.9%. In late 2007, Timor-Leste adopted an aggressive reformist agenda. Under this agenda, the country has undergone significant social and economic transformations. Economic growth peaked in 2008 and 2009, at 12.2% and 12.7%, respectively, ranking the Timor-Leste one of the top ten fastest growing economies in the world for two consecutive years. The nominal GDP has increased from US$357.8 million in 2007 to US$444.6 million in 2008 and then to US$548.1 million in 2009. The projected nominal GDP for 2010 is $637.2 million. Capital development has surged to 1023% since 2006. With a targeted spend of US$1.4 billion since 2007, the Government achieved a 9% reduction in poverty, delivered within a two year period. This is a major achievement if you consider that out of 167 conflicts occurring in 81 countries, the average growth lingered between 2–5% five years after the conflict. Yet since the 2006 crisis, Timor-Leste has registered a 15% jump in economic growth. This is a new benchmark for fast tracking economic growth which in turn stabilizes social conditions to foster peace.

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Timor-Leste has a Petroleum Fund now worth US$6.3 billion, averaging a return of US$138 million per month from oil and gas revenues in 2009 and a forecast of US$150 million per month for 2010. The nation currently has no debt constraints and has focused on utilizing sovereign wealth to invest into the nation: human capacity, infrastructure, and social capital, all assets which will spur the non-oil economy, create employment opportunities and establish long term economic growth. Prudent and targeted public spending has been the cornerstone of growth. The National Strategic Development Plan 2011–2030 which will be presented this year will be the guiding document that will bring Timor- Leste from a low income country to a middle income country by 2030. Dialogue, stability, reform and planning have been the benchmarks for the modicum of success of a new Timor-Leste. These simple four concepts are applicable to the most complex of global challenges; replacing reactionism, and unilateralism with inclusivity to navigate a global path back to restore and invigorate public confidence, public confidence in leadership, in governance and in institutions . We have learned this lesson through the formation of the g7+ and will continue to reap the benefits as Timor-Leste moves from fragility to agility.

TONGA: ’OTENIFI AFU’ALO MATOTO Governor of the Bank and the Fund

I am honored to have the opportunity to address today the 2010 International Monetary Fund (IMF) and World Bank Group (WB) Board of Governors’ Annual Meetings. On behalf of the Tongan delegation, I would like to express my appreciation to the IMF and WB for the excellent arrangements of this important meeting. This is an opportunity for us to collectively reflect on what we have accomplished to date since the onset of the global crisis and chart our future direction in a changing world. I would also like to take this opportunity to welcome Tuvalu to their first Annual Meetings, as the latest member of the IMF and WB. Two years ago, the world woke up to the worst financial crisis of our history that overwhelmed the fabric of the global economy, revert- ing progress of many countries toward achieving MDGs. Although the IMF and WB swiftly and responsibly responded to the unprecedented demand from client countries, the economic recovery remains fragile and uncertain, posting a worrisome situation to small economies such as Tonga who is yet to benefit from the recovery. However, we deem the uncertainty has underscored the reality of why we come together annually as responsible citizens of the Bretton-Woods Institutions. We are united with determination and with primary focus on overcoming the global economic crisis and to strategically lay out the road map toward addressing the challenges that lie ahead. In this respect, we

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acknowledge the work already underway by the WB Group in implementing its five strategic post-crisis directions.

World Bank Group

The global economic crisis has left a trail of lessons that necessitates our world to take innovative actions in an era of continued uncertainty. In this regard, we strongly support the transformational effort put- forth towards robust global multilateral institutions. We laud the Bank for taking proactive actions to reform its operational instrument so that it continues to play a critical role in a post-crisis world, along with other international financial institutions. The ambitious internal reform agenda undertaken by the Bank aiming at making the institution more efficient, effective and accountable to addressing emerging global challenges is commendable. We particularly welcome the development of the knowledge strategy because it will strengthen the Bank’s comparative advantage, while modernizing its operational instruments to meet each client’s tailor-made needs, and support knowledge exchange and innovation between the Bank and member countries. We acknowledge the assistance provided by the Bank to developing client states in the last 50 years through the International Development Association (IDA). We appreciate the work undertaken to increase country level aid effectiveness by improving its operational efficiency and strengthening the result-based focus of its programs. We support the call to align IDA programs with the country’s priorities and emphasize the importance of coordination with other partners in order to deliver tangible developmental results. We urge the Bank to pay particular attention to small states economies as they are more susceptible to the impact of climate change, and hence will bear a bigger burden of adaptation and mitigation costs. Furthermore, we also urge donor countries to double their efforts to provide additional resources to IDA so that the small and vulnerable countries can regain the losses suffered from the waves of the global crises and sustain economic growth in order that economic resilience and pro-poor policies can be maintained. We welcome the establishment of the Crisis Response Window with the objective to help countries return to their long-term development paths. We endorse the enhancement efforts to IDA replenishment focusing on four critical cross-cutting areas namely, Gender, Fragile Situations, Cli- mate Change and Crisis Response going forward.

International Monetary Fund

In the post-crisis world, the constructive and even-handed engagement by the Fund with all of its members, including its smallest, is

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crucial to sustain its legitimacy. In this regard, we look forward to the forthcoming review of quotas and fully expecting a substantial shift in shares towards emerging markets and developing countries as a whole, in line with their rising role and weight in the global economy. We reiterate that small and low-income countries should be protected in this exercise, by preserving their quota shares on an individual basis and providing greater inclusiveness to the Poverty Reduction and Growth Trust list of countries. We note the call to reform the quota formula and support a lower quota size increase that facilitates a targeted shift towards emerging markets and developing countries, as the quota increase can involve costly financial contributions for small and low-income countries. We welcome the introduction of the Post Catastrophe Debt Relief Trust Fund and look forward to its productive use. We urge the Fund to continue examining options to further enhance financing options for small and low-income countries as well as explore innovative instruments to address the unique challenges that many small and low- income countries face, including commodity price hedging and the adverse effects of climate change.

Tonga Economy

The Tongan economy experienced the full extent of the global economic crisis and the last financial year 2009/10 estimated to have contracted by 1.2 percent. This was made worse by the tightening up of the bank credit as the banks went into a consolidation mode, and remittances and tourism receipts declined by 10.0 percent and 13.0 percent, respectively. In addition, the country was affected by drought, cyclone and the Ashika tragedy, inflicting more negative impact on economic activities. The northern island of Niuatoputapu was devastated by a tsunami, which also affected Samoa and American Samoa. The Gov- ernment of Tonga is committed to continue implementing its reform programs stipulated in the National Strategic Planning Framework, which aim to raise economic performance while adopting a more cautious fiscal position, instituting a fully democratic government and continued improvement in government and regulatory framework. The outlook appears encouraging, with 1.4 percent growth projected for the current year financial year 2010–11 driven by increased construction and infrastructure activities. Nevertheless, Tonga remains highly vulnerable to economic shocks and natural disasters, which unquestionably hamper economic growth. Apparently, tourism and remittances will depend on the pace of economic recovery in larger economies, particularly in the United States of America, Australia and

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New Zealand. Therefore, we suggest that the Bank should assess the sustainability of remittances in times of crises and develop appropriate instruments that will put remittances into productive use in countries where remittances are a major source of income flow. Tonga will elect its first fully democratic government on Novem- ber 25, 2010. It is expected that new developments will arise from this change, which will have an impact on economic development. We are grateful for the continuous and increased assistance from the IMF, WB, and other development partners. In this respect, we are grateful for the development of the first Country Assistance Strategy for Tonga by the WB, which presents practical features towards improving development outcomes for the next five years. Increased representation in the Pacific region through the Sydney office and the country local offices have greatly increased the Bank’s activities in the region and improved donor coordination. This is much appreciated by Tonga and the Pacific member countries. In closing, I would like to convey our sincere appreciation to the management and staff of the Fund and the Bank for the efficient assistance provided to Tonga thus far. The full operation of the joint Asian Development Bank/WB office in Tonga has provided efficiency gains in terms of improved communication with the Bank and better donor coordination. The Government of Tonga is very grateful to the Bank and the Fund for the financial and technical assistance provided and we look forward to continuing and improved cooperation and support towards our economic, social and political development.

TURKEY: ALI BABACAN Governor of the Fund

Global economy is emerging from the deepest recession in the post- second World War era although recovery rates among the regions and economies display divergences. There are several risks involved in this recovery period. Of these risks, debt sustainability and fiscal imbalances stand out as the critical challenges which not only pose threat to the current period but also for the years to come. Another issue that deserves attention is high unemployment rates. Creating jobs and bringing down persistently high unemployment rates will be tough problems to deal with, especially at a time when budget deficits and public debt stocks are at record high levels. High unemployment especially in developed countries will be putting continuous pressure on growth rates. A third risk area is still the financial sector. When we look at the balance sheets, we see that for many banks getting back to normal will take a long time.

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About the economy of my country, Republic of Turkey, our economy enjoyed strong fundamentals before the recent global crisis. Hence, the effects of the crisis on our economy have been relatively limited. This was neither a coincidence nor a stroke of luck. Basically, it was a consequence of structural reforms and our prudent policy approach. After 2002, we took significant steps to restructure and rehabilitate our banking sector. We made many reforms like our new credit card law, like our mortgage law, like our framework banking law which are strong and demanding. On the fiscal policy side, we introduced measures to bring down our budget deficit and public debt stock to very reasonable levels. Turkey has gone through an enormous fiscal adjustment process. So, when the recent crisis hit we had the room to maneuver. We also implemented a set of structural reforms that would enhance our economy’s competitiveness, boost labor market flexibility, and eliminate vulnerabilities. While focusing on mitigating the threats posed by the crisis, we did not lose sight of our long-term vision. In this regard, being one of the very few and also one of the first countries formulating its exit strategy, we announced our Medium Term Program last year in September. This program reinforced the predictability of our policies, enhanced confidence level overall. We announced in detail what we are going to be doing especially in terms of our fiscal policies, how we are going to be reducing our deficits step by step, three years into horizon. This brought a lot of predictability. With the strong recovery in domestic and external demand as well as a surge in private investments, our economy grew by an outstanding rate of 11.0 percent during the first half of 2010 and unlike the general trend; this was not a jobless recovery. During the first half of 2010 compared to 2009, 1.5 million new jobs were created in Turkey. This brought our unemployment rate down by 2.6 percentage points compared to last year. Throughout the crisis Turkey was the only country whose credit rating was upgraded by two notches. Not only credit rating agencies but also markets praised strong performance and healthy state of our economy and confidence in our policies. Accordingly, our CDS spreads have declined to levels that are much lower than many developed economies which have higher ratings than us. All throughout the crisis we did not have any problems with our banking sector. We did not have to transfer any government funds to any Turkish banks. We did not have to touch our guarantee system. The deposit guarantee scheme has been kept identical throughout this crisis period.

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Global problems require coordinated and sustained efforts. In this regard, international financial institutions play a central role in the coordination of our policies. Only fair representation in these institutions implies legitimacy. This is critical for the effectiveness of the decisions taken by these institutions. Looking from this perspective, underrepresentation of the emerging countries in IMF as well as the World Bank seriously affects the legitimacy and the effectiveness of these institutions. We call for the rapid completion of the 14th quota review in IMF and this should involve a significant shift of quota shares from developed countries to dynamic emerging market and developing countries. Also, shifting some chairs from advanced economies to emerging market economies at the Board of IMF would improve the representation and legitimacy of this Board. We have a valuable opportunity to make a significant step forward to improve the global governance, of which the World Bank and IMF reforms are crucial elements. All stakeholders should take this opportunity to conclude much needed reforms in a cooperative spirit for the good of all.

UKRAINE: SERGIY TIGIPKO Governor of the Bank

The Annual Meetings of the IMF and the World Bank are taking place at an especially important time for the world economy. Even though it seems that the worst of the crisis is over, economic growth in many economies around the world has not taken root. What can be done? Every country decides on the policies to pursue, but it is extremely important to coordinate actions. Currently, Ukraine can talk about some achievements. We know precisely our plan of action, and we are taking steps that are both popular and not popular. This plan is not really a revelation to anyone. We are pursuing three standard objectives: • We consolidate our finances, and I can say that here we have achieved undeniable successes. Last year, our budget deficit was above 12.5 percent, and this year, when the new government came to power, after the first three months of the year, in April, we were able to adopt a budget with a 4.9 percent deficit. We are on track to achieve this level of budget deficit. • We managed to take a set of unpopular laws, including such actions as raising tariffs for social and communal services, increasing gas prices for households—and this gave us an opportunity to take the country back, away from the edge of the abyss of practically bankruptcy, and

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to get a program with the IMF. During this short time period, we were able to conduct two stress tests of the banking system, we were able to adequately capitalize our banking system, and today, we absolutely see no risks to this system. It has today, just like many other banking systems in other countries, excessive liquidity, and we expect that any time now, serious credit growth will begin for both businesses and households. • And another extremely important investor-friendly action—we are trying to change our business and investment climate very quickly. A lot has been accomplished up to today. We have removed 76 percent of licensing requirements, and soon this will be close to 90 percent. We have made getting licenses easier. We made licenses open-ended, with no expiration dates. Very important decisions have been made. As recently as during the last few months, some of the most important laws adopted by us have included a law on government procurement, a law on a regulator of communal tariffs, a law on gas market—to name a few. All of these have been breakthroughs in reforming important sectors of the economy. I am confident that these comprehensive, though difficult for Ukraine measures, will allow us to achieve a budget deficit of 3.5 percent next year and create favorable conditions for investors, who will be aware of our efforts to help them doing business in our country. I am confident that bleak times for Ukraine have passed, and going forward, we will demonstrate steady economic growth.

UNITED KINGDOM: ANDREW MITCHELL Governor of the Bank

The global economy has now entered the recovery phase after the most severe global recession since the Great Depression. The recovery will not be completely even, with some countries, particularly in emerging Asia, recovering more quickly than others. In some advanced economies, investment is starting to pick up, as is employment growth, while private consumption remains weak but is growing. Overall the recovery remains consistent with the historical experience of post-financial crisis recoveries. Although downside risks to the outlook have increased in recent months, in the UK the fundamentals are coming into place for a strong recovery and jobs are returning. Fiscal consolidation remains essential for a strong, sustained and balanced recovery. The path of adjustment should be differentiated depending on the state of the public finances and financial system in each country. Those countries facing serious fiscal challenges need to

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continue implementing accelerated consolidation plans, whereas those countries with fiscal room should continue to consolidate at a steady pace in order to support demand in the short term. But row- ing back now from deficit reduction would lead to a severe loss of confidence. There can also be no recovery without decisive and consistent action by countries to build a strong, well-regulated global financial system. Ongoing fragility in global financial markets demonstrates the deep and lasting impact of the crisis on the financial sector. It is vital that we maintain a cooperative approach to the reform of financial sector and that we implement internationally consistent rules that support the free movement of capital and open markets. We welcome the recent agreement reached to strengthen international capital and liquidity standards. Full, consistent and nondiscriminatory implementation of these, and other measures, is now crucial. But there is more to be done. We need to turn our attention to restoring the self-disciplining role of markets, reducing market distortions and addressing moral hazard. A key part of this will be delivering the coherent framework for tackling the risks posed by systemically important institutions that the G20 committed to back in September 2009. Greater trade liberalization is the key stimulus the world economy needs at this time. Trade is a powerful wealth creator—it has the ability to provide employment opportunities, spread knowledge and encourage innovation. Moreover, it has lifted millions of people around the world out of poverty. That is why it is imperative that we maintain momentum to conclude the Doha round of negotiations as soon as possible, which will provide gains to the global economy worth $165 billion. Resisting protectionist measures during a time of fiscal consolidation will also be a key and I welcome the G20 Toronto commitment to refrain from introducing or raising further barriers to trade for a further three years. Alongside international cooperation on issues such as financial regulation and trade, we need effective international financial institutions to support our efforts to promote recovery. Most urgently, our credibility as an institution and as Governors depends on delivering a successful outcome in reforming the IMF’s governance. The IMF must represent the balance of economic power in the 21st century, to stay relevant and effective. Discussions on this issue are not easy and require compromise from all sides, but we have been encouraged by the progress that we have made in recent weeks. It is extremely important that we agree a lasting deal that remains stable for the coming years, and that countries have confidence that will be

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implemented. A minimum first step must be for all countries to rat- ify the 2008 reforms. The reform must deliver greater quota and board representation to the dynamic emerging and developing countries. Europe can contribute to achieving this goal by reducing its representation on the IMF’s Executive Board. We hope that other countries will also contribute to this goal by agreeing to create a permanent 24-seat board to provide more security to the smallest seats on the Board. On quota, our ability to finalize the details of an agreement in the coming weeks will be greatly enhanced if we reach a consensus during these meetings on the main parameters of the review. We need to start narrowing down the options and should aim to make progress on three key points: • To ensure that the Fund has enough resources to carry out its role effectively, we should be prepared to increase quotas by up to 100%, with some rebalancing with the NAB. • Secondly, all over-represented countries should contribute to the shift in quota, so that the burden does not fall on a small number of countries. The size of the shift can be greater if more countries play a part. And those that are losing share need to be able to present this as a fair deal at home. So we hope that we can agree that with the exception of the poorest, who we must protect, all over-represented countries should contribute to the shift. • Finally, we need to agree on who the shift is from and to. We now need to reach agreement on the definition of the shift if we are to make progress over the next few weeks. The IMF’s simulations show that we can deliver both a shift of over 5% from over represented countries to under-represented countries, and a shift of over 5% to dynamic emerging markets and developing countries. These are in line with what was agreed both at Pittsburgh and in Istanbul and we should agree today that these are our objectives. However, governance reform alone won’t make the IMF an effective institution able to meet the needs of its members. The increasing importance of emerging economies in the global economy, alongside significant increase in the scale and volatility of capitals flows, poses new challenges for the International Monetary System. The Fund must be equipped with the right tools to promote stability, ensure countries can withstand economic shocks and prevent crises from spreading. IMF lending frameworks must provide incentives for countries to adopt sound policies in good times, and be flexible enough to deal both with individual country problems and systemic shocks. We welcome recent reforms to the IMF’s Flexible Credit Line and the creation of

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the Precautionary Credit Line. The IMF should look to maximize the impact of its new tools. We would also encourage further work on a systemic crises response framework and cooperation with regional arrangements. The scale of cross-border economic and financial links underlines the importance of ensuring that the Fund is able to provide objective oversight of our economies and of the system as a whole to prevent future crises. We welcome the IMF’s efforts to integrate financial sector and economic surveillance and to enhance its analysis of the impact of a country’s own policies on others. We support further work to sharpen surveillance, to ensure that the Fund is able to provide high quality and timely advice to inform policy decisions. We encourage the IMF to work with others, including the World Bank, FSB and OECD to bring additional expertise to its work. As the world economy recovers, we have a duty to ensure that the poorest countries benefit too. The IMF continues to have an important role to play in supporting low-income countries through policy advice and financial assistance tailored to their specific needs and focused on poverty reduction. We are pleased that the UK has been able to support this work through a $2 billion loan of Special Drawing Rights to the Poverty Reduction and Growth Trust. We encourage other IMF members to provide resources to support this work. Alongside this, the World Bank continues to be at the forefront of promoting development and improving the resilience of developing countries. The UK welcomes the action taken by IDA to deploy unused resources to trial a new crisis response window. We now call on other shareholders and donors to agree a permanent Crisis Response facility within IDA, to ensure that it can continue to respond quickly and effectively to the needs of the most vulnerable. The UK welcomes the Bank’s strong focus on results. It is essential that the Bank delivers better value for money and maximizes the value of resources available for development. By doing this, the Bank can help the international community deliver on the pledges that have just been reaffirmed at the UN Millennium Development Goals Conference in New York.

UNITED STATES: TIMOTHY F. GEITHNER Governor of the Bank and the Fund

On behalf of President Obama, welcome to Washington. We gather here for the Annual Meetings of the World Bank Group and the Inter- national Monetary Fund (IMF) to reaffirm our collective commitment to strengthen the global economy, build a more stable financial system, and create opportunities for the world’s poorest.

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Two years ago, the world economy was in the grip of an economic crisis on a scale not seen since the Great Depression. The United States and the countries here together this weekend joined forces to launch a powerful, dramatic response. This cooperation was historic and has helped stabilize our financial systems, restart global growth, and protect developing economies from some of the worst impacts of the crisis. Collectively, we delivered a coordinated program of macroeconomic stimulus to our economies and mobilized substantial firepower through the international financial institutions. We committed to keep markets open to trade and investment. We embraced a common framework for reform of the global financial system. Because we worked so effectively together, all of our economies are better today than would otherwise have been possible. But we are not done. The challenge before us now is to strengthen the pace of growth and repair and to do so in a way that provides the basis for a more balanced and therefore more sustainable global economic recovery. We must address this core challenge together for no one country can solve it alone. The United States believes that global rebalancing is not progress- ing as well as needed to avoid threats to the global economic recovery. Our initial achievements are at risk of being undermined by the limited extent of progress toward more domestic demand-led growth in countries running external surpluses and by the extent of foreign exchange intervention as countries with undervalued currencies lean against appreciation. These are the critical challenges of this period, and we must work collectively and through our multilateral forums, such as these meetings, to address them cohesively. The United States is pleased with the pace of progress on international financial reform. We passed sweeping reforms of the U.S. financial system, and the world’s central banks and supervisors reached agreement just two weeks ago on a very tough set of global standards for capital to limit leverage in the major global financial institutions. The IMF will continue to play a critical role on these issues. We are now making progress toward agreement on a very important set of reforms to create a stronger IMF. These changes would strengthen the financial position of the Fund, allow it to respond more quickly and forcefully to future crises, and give the fastest growing emerging economies greater weight in the institution and a greater share of seats on the Board. We must also strengthen the Fund’s surveillance role if we are to avoid future crises. Surveillance is one of the Fund’s core functions and, in the current environment, the IMF has an important role to play to help ensure that progress toward rebalancing strength-

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ens and that the international adjustment process is permitted to work. It is ultimately the responsibility of countries to act, but the IMF must speak out effectively about challenges and marshal support for action. The World Bank’s mission to end poverty remains vital, and the United States recognizes the value of the Bank’s efforts to strengthen broad-based economic growth, including strengthening the private sector and infrastructure, investing in innovation, and building sustainable systems for meeting basic human needs. The World Bank, and the regional development banks, acted with exceptional speed and force to cushion the world’s poorest from the worst impacts of the crisis and to help restore liquidity for world trade flows. Their decisive actions were critical to global stabilization efforts and are a fundamental part of the reason why we are now experiencing growth. As President Obama noted in his new global development policy, the United States is committed to working with the World Bank and the regional development banks as key partners in global development. We will continue to pursue a reform agenda to further strengthen the effectiveness of these institutions and maximize the impact of our investments. We have also committed to help recapital- ize them so that they can maintain their pre-crisis lending levels and continue stimulating global growth. The United States has stressed that resources and reforms will be linked, and we look forward to working with our Congress and the World Bank’s leadership on strengthening that institution’s capacity to deliver results. To date, we have effectively kept trade protectionism at bay. And as the global economy has started to recover, trade has rebounded, pre- senting us with a renewed opportunity to advance the multilateral trade agenda. An ambitious and balanced result in the WTO Doha Round has the power to first unlock and then sustain global growth and development, but only if all of the key trading powerhouses—both developed and developing—are prepared to make commitments commensurate with their influence in the international trading system. Locking in the status quo is not enough; real growth and development can only emerge from opening new and meaningful market opportunities. The United States remains fully committed to the multilateral rules-based trading system, a system that helps provide a level playing field for all of its players—and it is critical that the other key players in the system share in this commitment. The world economy is on the mend, but we have a number of challenges on the horizon that we must address today and in the coming months. We must continue to press ahead on our common agenda if we wish to build better opportunities for our nations, our citizens, and for the poorest around the world.

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DOCUMENTS OF THE BOARD OF GOVERNORS

SCHEDULE OF MEETINGS1,2,3

Friday October 8 10:00 a.m. Opening Ceremonies Address from the Chair Annual Address by Managing Director International Monetary Fund Annual Address by President World Bank Group4 Procedures Committees Reports Chairman, ICSID Administrative Council Adjournment 1:15 p.m. ICSID (continued) Report by Secretary General ICSID Procedure followed in ICSID Case No. ARB/97/3 Role of ICSID Secretariat in proceedings Procedure for Appointment of Arbitrators

1 The Meetings were held at DAR Constitution Hall (Friday a.m. session). The ICSID session was continued at 1:15 p.m. in the Eugene Black Auditorium, World Bank HQ, H Building. 2 The Development Committee met on Saturday, October 9, 2010 at 3:00 p.m. in the Preston Auditorium, World Bank HQ. 3 The reports of the Joint Procedures Committee (JPC) and MIGA Procedures Committee (MPC) were approved on October 6, 2010 on an absence of objection basis and the Committees’ conclusions to the Boards of Governors were delivered by the Chair at the plenary session on October 8, 2010. 4 The World Bank Group consists of the following: International Bank for Reconstruction and Development (IBRD) International Finance Corporation (IFC) International Development Association (IDA) International Centre for Settlement of Investment Disputes (ICSID) Multilateral Investment Guarantee Agency (MIGA)

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PROVISIONS RELATING TO THE CONDUCT OF THE MEETINGS1

ADMISSION 1. Session of the Boards of Governors of the International Monetary Fund and the World Bank Group will be joint and shall open to accredited press, guests and staff. 2. Meetings of the Joint Procedures Committee shall be open only to Governors who are members of the Committee and their advisers, Executive Directors, and such staff as may be necessary.

PROCEDURES AND RECORDS 3. The Chairman of the Boards of Governors will establish the order of speaking at each session. Governors signifying a desire to speak will generally be recognized in the order in which they ask to speak. 4. With the consent of the Chairman, a Governor may extend his statement in the record following advance submission of the text to the Secretaries. 5. The Secretaries will have verbatim transcripts prepared of the proceedings of the Boards of Governors and the Joint Procedures Committee. The transcripts of proceedings of the Joint Procedures Committee will be confidential and available only to the Chairman, the Managing Director of the International Monetary Fund, the President of the World Bank Group, and the Secretaries. 6. Reports of the Joint Procedures Committee shall be signed by the Committee Chairman and the Reporting Members.

PUBLIC INFORMATION 7. The Chairman of the Boards of Governors, the Managing Director of the International Monetary Fund and the President of the World Bank Group will communicate to the press such information concerning the proceedings of the Annual Meetings as they may deem suitable.

1 Approved on March 19, 2010 pursuant to the By-laws, IBRD Section 5(d), IFC Section 4(d), and IDA Section 1(a)

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AGENDAS

BANK1 Annual Report Financial Statements and Annual Audit Allocation of FY10 Net Income Administrative Budget for FY11 2010 Regular Election of Executive Directors Selection of the Members of the Joint Procedures Committee and its Officers for 2010–2011

IFC1 Annual Report Financial Statements and Annual Audit Use of IFC’s FY10 Net Income: Retained Earnings and Designated Retained Earnings Administrative Budget for FY11

IDA1 Annual Report Financial Statements and Annual Audit Administrative Budget for FY11

MIGA2 Annual Report Financial Statements and Annual Audit 2010 Regular Election of Directors Selection of the Members of the MIGA Procedures Committee and its Officers for 2010–2011

1 Approved on August 24, 2010 pursuant to the By-laws, IBRD Section 5(d), IFC Section 4(d), and IDA Section 1(a). 2 Approved on August 24, 2010 pursuant to Section 4(a) of the MIGA By-laws.

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JOINT PROCEDURES COMMITTEE

Chairman ...... Nigeria

Vice Chairmen ...... China Jamaica

Reporting Member ...... Poland

Members

Colombia Portugal Congo, Democratic Republic of Saudi Arabia Denmark Sri Lanka France Thailand Germany Ukraine Hungary United Arab Emirates Japan United Kingdom Mexico United States Morocco Uruguay Papua New Guinea

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REPORTS OF THE JOINT PROCEDURES COMMITTEE

REPORT II1

October 6, 2010 The Joint Procedures Committee approved on October 6, 2010, submission of the following reports and recommendations on Bank and IDA business to the Boards of Governors: 1. 2010 Annual Report The Committee noted that the 2010 Annual Report and the activities of the Bank and IDA would be discussed at these Annual Meetings. The Annual Report is available on the Bank’s website (www.worldbank.org/annualreport). 2. Regular Election of Executive Director The Committee noted that the 2010 Regular Election of Execu- tive Directors of the Bank would be completed on October 8, 2010 and that the next Regular Election of Executive Directors will take place in 2012. 3. Financial Statements, Annual Audits, and Administrative Budgets The Committee considered the Financial Statements, Accoun- tants’ Reports, and Administrative Budgets contained in the 2010 Bank and IDA Annual Report, together with the Report dated June 23, 2010. The Committee recommends that the Boards of Governors of the Bank and IDA adopt the draft Resolutions. . . .2 4. Allocation of FY10 Net Income The Committee considered the Report of the Executive Directors, dated August 5, 2010 on the Allocation of FY10 Net Income. . . .3 The Committee recommends that the Board of Governors of the Bank adopt the draft Resolution. . . .4

1 Report I related to business of the Fund. 2 These resolutions were subsequently approved. See pages 166 and 171. 3 This resolution was subsequently approved. See page 200. 4 This resolution was subsequently approved. See page 166.

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The Committee further approved submission of the following reports and recommendations on IFC business to the Board of Governors: 1. 2010 Annual Report The Committee noted that the 2010 Annual Report and the activities of the IFC would be discussed at these Annual Meetings. 2. Financial Statements, Annual Audit, Administrative Budget and Designation of Retained Earnings The Committee considered the Financial Statements and Accountants’ Report, the Administrative Budget and the Designa- tion of Retained Earnings based on IFC’s FY10 Net Income contained in the 2010 Annual Report, dated June 23, 2010. The Committee recommends that the Board of Governors of IFC adopt the Draft Resolution. . . .1

Approved: /s/ Olusegun O. Aganga Nigeria—Chairman /s/ Zhu Guangyao China—Vice Chairman /s/ Audley Shaw Jamaica—Vice Chairman (This report was approved and its recommendations were adopted by the Board of Governors on October 8, 2010)

1 This resolution was subsequently approved. See page 167.

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REPORT III

October 6, 2010 The Joint Procedures Committee approved on October 6, 2010 submission of the following report and recommendations to the Boards of Governors: 1. Development Committee The Committee noted that the Report of the Chairman of the Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Develop- ing Countries (Development Committee)1 would be circulated to the Boards of Governors of the Fund and the Bank pursuant to paragraph 5 of Resolutions Nos. 29-9 and 294 of the Fund and the Bank, respectively, and subsequently entered into the record. The Committee recommends that the Boards of Governors of the Fund and the Bank note the report and thank the Development Committee for its work. 2. Officers and Joint Procedures Committee for 2010/2011 The Committee recommends that the Governor for The Bahamas be Chairman, and that the Governors for Georgia and Pakistan be Vice Chairmen, of the Boards of Governors of the Fund and the World Bank Group, to hold office until the close of the next Annual Meetings. It is further recommended that a Joint Procedures Committee be established to be available, after the termination of these meetings and until the close of the next Annual Meetings, for consultation at the discretion of the Chairman, normally by correspondence and, if the occasion requires, by convening; and that this Committee shall consist of the Governors for the following members: Australia, The Bahamas, Bangladesh, Belgium, Burkina Faso, Egypt, France, The Gambia, Georgia, Germany, Guatemala, Italy, Japan, Kenya, Malaysia, Norway, Pakistan, Paraguay, Philippines, Saudi Arabia, Trinidad and Tobago, the United Kingdom, and the United States.

1 See page 21.

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It is recommended that the Chairman of the Joint Procedures Committee shall be the Governor for The Bahamas and the Vice Chairmen shall be the Governors for Georgia and Pakistan and that the Governor for Philippines shall serve as Reporting Member.

Approved: /s/ Olusegun O. Aganga Nigeria—Chairman /s/ Zhou Xiaochuan China—Vice Chairman /s/ Audley Shaw Jamaica—Vice Chairman

(This report was approved and its recommendations were adopted by the Board of Governors on October 8, 2010)

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MIGA PROCEDURES COMMITTEE

Chairman ...... Nigeria

Vice Chairmen ...... China Jamaica

Reporting Member ...... Poland

Members

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REPORT OF THE MIGA PROCEDURES COMMITTEE REPORT I

October 6, 2010

On October 6, 2010 the MIGA Procedures Committee approved submission of the following report and recommendations on business on the agenda of the Council of Governors of MIGA: 1. 2010 Annual Report The Committee noted that the 2010 Annual Report and the activities of MIGA would be considered at this Annual Meeting. The Annual Report is available on MIGA’s website (http://www .miga.org). 2. Financial Statements and Annual Audit The Committee considered the Financial Statements and Accountants’ Report contained in the 2010 Annual Report. The Committee recommends that the Council of Governors adopt the draft Resolution. . . .1 3. 2010 Regular Election of Directors The Committee noted that the 2010 Regular Election of Direc- tors of MIGA would be completed on October 8, 2010 and that the next Regular Election of Directors will take place in 2012. 4. Officers and Procedures Committee for 2010/2011 The Committee recommends that the Governor for The Bahamas be Chairman and the Governors for Georgia and Pak- istan be Vice Chairmen of the Council of Governors of MIGA to hold office until the close of the next Annual Meeting. It is further recommended that a Procedures Committee be established to be available, after the termination of this Annual Meeting and until the close of the next Annual Meeting, for consultation at the discretion of the Chairman, normally by correspondence and, if the occasion requires, by convening; and that this committee shall consist of the Governors for the following members: Australia, Bahamas, Bangladesh, Belgium, Burkina Faso, Egypt, France, The Gambia, Georgia, Germany, Guatemala, Italy, Japan, Kenya, Malaysia, Nor- way, Pakistan, Paraguay, Philippines, Saudi Arabia, Trinidad and Tobago, United Kingdom, and United States.

1 This resolution was subsequently approved. See page 176.

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It is recommended that the Chairman of the Procedures Com- mittee shall be the Governor for The Bahamas and the Vice Chair- men shall be the Governors for Georgia and Pakistan, and that the Governor for the Philippines shall serve as Reporting Member.

Approved: /s/ Olusegun O. Aganga Nigeria—Chairman /s/ ZHU Guangyao China—Vice Chairman /s/ Audley Shaw Jamaica—Vice Chairman

(This report was approved and its recommendations were adopted by the Council of Governors on October 8, 2010)

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RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF THE BANK BETWEEN THE 2009 AND 2010 ANNUAL MEETINGS

Resolution No. 605

Membership of Tuvalu

WHEREAS, the Government of Tuvalu has applied for admission to membership in the International Bank for Reconstruction and Development in accordance with Section 1(b) of Article II of the Arti- cles of Agreement of the Bank;

WHEREAS, pursuant to Section 19 of the By-Laws of the Bank, the Executive Directors, after consultation with representatives of the Government of Tuvalu, have made recommendations to the Board of Governors regarding this application;

NOW, THEREFORE, the Board of Governors hereby

RESOLVES:

THAT the terms and conditions upon which Tuvalu shall be admit- ted to membership in the Bank shall be as follows:

1. Definitions: As used in this Resolution: (a) “Bank” means International Bank for Reconstruction and Development. (b) “Articles” means the Articles of Agreement of the Bank. (c) “1979 Additional Capital Increase Resolution” means Board of Governors’ Resolution No. 347 entitled “1979 Additional Increase in Authorized Capital Stock and Subscriptions Thereto” adopted on January 4, 1980, as amended by Resolu- tion No. 419 adopted on August 17, 1987.

2. Membership in the Fund: Before accepting membership in the Bank, Tuvalu shall accept membership in and become a member of the International Monetary Fund.

3. Subscription: By accepting membership in the Bank, Tuvalu shall subscribe to 211 shares of the capital stock of the Bank at par on

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the terms and conditions set forth or referred to in paragraph 4 hereof.

4. Payments on Subscription: (a) Upon accepting membership in the Bank, Tuvalu shall pay to the Bank under Article II, Section 7(i) of the Articles on account of the subscription price of each of the 211 shares sub- scribed pursuant to paragraph 3 of this Resolution: (i) United States dollars equal to 0.6% (six-tenths of one percent) of the subscription price; and (ii) An amount in its own currency, at the appropriate prevail- ing exchange rate, equal to 5.4% (five and four-tenths of one percent) of the subscription price. (b) The Bank shall call the amounts of subscription under paragraph 3 of this Resolution payable under the said Article II, Section 7(i), which are not required to be paid under paragraph 4(a) above, only when required to meet obligations of the Bank for funds borrowed or on loans guaranteed by it, and not for use by the Bank in its lending activities or for administrative expenses.

5. Acceptance of Subscription: Before the Bank shall accept Tuvalu’s subscription to the shares set out in paragraph 3 of this Resolution, the following action shall have been taken: (a) Tuvalu shall have taken all action necessary to authorize such subscription and shall furnish to the Bank all such information thereon as the Bank may request; and (b) With respect to and on account of the subscription price of the said shares, Tuvalu shall pay to the Bank the amounts set forth in paragraph 4(a) above.

6. Representation and Information: Before accepting membership in the Bank, Tuvalu shall represent to the Bank that it has taken all action necessary to sign and deposit the instrument of acceptance and sign the Articles as contemplated by paragraphs 7(d) and (e) of this Resolution and Tuvalu shall furnish to the Bank such information in respect of such action as the Bank may request.

7. Effective Date of Membership: Tuvalu shall become a member of the Bank with a subscription as set forth in paragraph 3 of this Res- olution as of the date when Tuvalu shall have complied with the following requirements: (a) become a member of the International Monetary Fund; (b) made the payments called for by paragraph 4 of this Resolution;

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(c) furnished the representation, and such information as may have been requested by the Bank, pursuant to paragraph 6 of this Resolution; (d) deposited with the Government of the United States of Amer- ica an instrument stating that it has accepted in accordance with its law the Articles and all the terms and conditions prescribed in this Resolution, and that it has taken all steps necessary to enable it to carry out all its obligations under the Articles and this Resolution; and (e) signed the original Articles held in the archives of the Govern- ment of the United States of America.

8. Additional Subscription on Terms and Conditions of the 1979 Additional Capital Increase Resolution: When the Executive Directors determine that a sufficient number of shares of the capital stock of the Bank is available for the purpose and authorize Tuvalu to subscribe to such shares, Tuvalu may subscribe 250 shares of the capital stock of the Bank on the terms and conditions specified in paragraphs 2 and 3 of the 1979 Additional Capi- tal Increase Resolution, provided, however, that notwithstanding the provision of paragraph 2(b) of the said Resolution, Tuvalu may subscribe such shares from the date the Executive Directors authorize Tuvalu to do so to a date to be determined by the Exec- utive Directors which shall be not less than one year from the date of such authorization.

9. Limitation on Period for Fulfillment of Requirements of Member- ship: Tuvalu may fulfill the requirements for membership in the Bank pursuant to this Resolution until December 31, 2010, or such later date as the Executive Directors may determine.

(Adopted May 3, 2010)

Resolution No. 606

Direct Remuneration of Executive Directors and their Alternates

RESOLVED:

THAT, effective July 1, 2010, the remuneration of the Executive Directors of the Bank and their Alternates pursuant to Section 13(e) of the By-Laws shall be paid in the form of salary without a separate sup- plemental allowance, and such salary shall be paid at the annual rate of

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$235,180 per year for Executive Directors and $203,440 per year for their Alternates.

(Adopted July 30, 2010)

Resolution No. 607

2010 Regular Election of Executive Directors

RESOLVED:

(a) THAT the attached Rules for the 2010 Regular Election of Executive Directors are hereby approved; and

(b) THAT a Regular Election of Executive Directors shall take place in connection with the Annual Meeting of the Board of Governors in 2012.

(Adopted August 2, 2010)

Resolution No. 608

Transfer from Surplus to Replenish the Trust Fund for Gaza and West Bank

RESOLVED:

THAT the Bank transfer immediately from surplus, by way of grant, US$55,000,000 to the Trust Fund for Gaza and West Bank, such transfer to be drawn down by the International Development Associa- tion as needed; provided, however, that the amount of such grant may at any time be changed by the International Development Association into an equivalent amount in other currencies.

(Adopted August 9, 2010)

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Resolution No. 609

Forthcoming Annual Meetings of the Boards of Governors— Change of Dates for 2010 and 2011 Annual Meetings in Washington, D.C.

RESOLVED:

THAT the 2010 Annual Meetings shall be convened in Washington, D.C. on Friday, October 8, 2010, and that Resolution No. 600 shall be amended accordingly; and

THAT the 2011 Annual Meetings shall be convened in Washington D.C. on Friday, September 23, 2011, and that Resolution No. 600 shall be amended accordingly.

(Adopted August 16, 2010)

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RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF THE BANK AT THE 2010 ANNUAL MEETINGS

Resolution No. 610

Financial Statements, Accountants’ Report and Administrative Budget

RESOLVED:

THAT the Board of Governors of the Bank consider the Financial Statements, Accountants’ Report and Administrative Budget, included in the 2010 Annual Report, as fulfilling the requirements of Article V, Section 13, of the Articles of Agreement and of Section 18 of the By- Laws of the Bank.

(Adopted October 8, 2010)

Resolution No. 611

Allocation of FY10 Net Income

RESOLVED:

1. THAT the Report of the Executive Directors dated August 5, 2010 on “Allocation of FY10 Net Income” is hereby noted with approval;

2. THAT the addition to the General Reserve of the IBRD of $281 million, plus or minus any rounding amount less than $1 million, is hereby noted with approval;

3. THAT the IBRD transfer to the International Development Asso- ciation, by way of a grant out of the FY10 allocable net income of the IBRD, $383 million, which amount may be used by the Associa- tion to provide financing in the form of grants in addition to loans, such transfer to be drawn down by the Association immediately upon approval by the Board of Governors of the IBRD; and

4. THAT the IBRD retains $100 million as surplus.

(Adopted October 8, 2010)

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RESOLUTION ADOPTED BY THE BOARD OF GOVERNORS OF IFC AT THE 2010 ANNUAL MEETINGS

Resolution No. 252

Financial Statements, Accountants’ Report, Administrative Budget and Designations of Retained Earnings

RESOLVED:

1. THAT the Board of Governors of the Corporation consider the Consolidated Financial Statements and Independent Auditors’ Report included in the 2010 Annual Report and the Administrative Budget contained in the Report of the Board of Governors on IFC’s FY11 Business Plan and Budget (the “Report”), as fulfilling the requirements of Article IV, Section 11, of the Articles of Agree- ment and of Section 16 of the By-Laws of the Corporation;

2. THAT the Report is hereby noted with approval;

3. THAT the Corporation’s FY10 Net Income of $1,746 million shall be transferred to undesignated retained earnings;

4. THAT the designation of $10 million of retained earnings for IFC’s Funding Mechanism for Technical Assistance and Advisory Ser- vices in IFC’s Fiscal Year 2011 First Quarter financial statements is hereby noted with approval;

5. THAT the designation of $600 million of retained earnings in IFC’s Fiscal Year 2011 financial statements for grants to the International Development Association for use by the Association in the form of grants in furtherance of IFC’s purpose, which, as set forth in Article I of the Corporation’s Articles of Agreement, is “to further economic development by encouraging the growth of productive private enterprise in the Corporation’s member countries, particularly in the less developed areas, thus supplementing the activities of the International Bank for Reconstruction and Development,” is hereby noted with approval.

(Adopted October 8, 2010)

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RESOLUTIONS ADOPTED BY THE BOARD OF GOVERNORS OF IDA BETWEEN THE 2009 AND 2010 ANNUAL MEETINGS

Resolution No. 224

Amendment to Resolution No. 211— Additions to Resources: Financing the Multilateral Debt Relief Initiative

WHEREAS:

(A) Resolution No. 211 of the Board of Governors “Additions to Resources: Financing the Multilateral Debt Relief Initiative” adopted on April 21, 2006 (the “MDRI Resolution”) authorized an increase in the resources of the International Development Association (the “Association”) as part of a commitment to provide full and timely compensation to the Association for debt cancellation under the Multilateral Debt Relief Initiative; and

(B) In their report dated January 14, 2010, the Executive Directors have recommended that the MDRI Resolution be amended so that Qualified Commitments under the terms of the MDRI Resolution can become available for commitment by the Asso- ciation for financing to eligible recipients.

NOW THEREFORE THE BOARD OF GOVERNORS HEREBY RESOLVE as follows:

The MDRI Resolution is amended in paragraph 7 to read as follows:

“7. Commitment Authority. Subscriptions and contributions made under Instruments of Commitment will become available for commitment by the Association for financing to eligible members in accordance with the commitment authority framework as approved by the Executive Directors.”

(Adopted March 1, 2010)

Resolution No. 225

Membership of Tuvalu

WHEREAS, the Government of Tuvalu has applied for admission to membership in the International Development Association in accor- 168 7912_CH05_p161-176.pdf 3/18/11 10:20 AM Page 169

dance with Section 1(b) of Article II of the Articles of Agreement of the Association;

WHEREAS, pursuant to Section 9 of the By-Laws of the Associa- tion, the Executive Directors, after consultation with representatives of the Government of Tuvalu, have made recommendations to the Board of Governors regarding this application;

NOW, THEREFORE, the Board of Governors hereby

RESOLVES:

THAT the terms and conditions upon which Tuvalu shall be admit- ted to membership in the Association shall be as follows:

1. Definitions: As used in this Resolution: (a) “Association” means International Development Association. (b) “Articles” means the Articles of Agreement of the Association. (c) “Dollars” or “$” means dollars in the currency of the United States of America.

2. Initial Subscription: (a) The terms and conditions of the membership of Tuvalu in the Association other than those specifically provided for in this Resolution shall be those set forth in the Articles with respect to the membership of original members listed in Part II of Schedule A thereof (including, but not by way of limitation, the terms and conditions relating to subscriptions, payments on subscriptions, usability of currencies and voting rights). (b) Upon accepting membership in the Association, Tuvalu shall subscribe funds in the amount of $20,000 expressed in terms of United States dollars of the weight and fineness in effect on January 1, 1960, which, pursuant to the decision of the Execu- tive Directors of the Association of June 30, 1986 on the valu- ation of initial subscriptions is $24,127 in current United States dollars, and shall pay the amount of $24,127 to the Association as follows: (a) ten percent either in gold or in freely convertible currency, and (b) ninety percent in the currency of Tuvalu. As of the date Tuvalu will become a member of the Association, 504 votes shall be allocated to Tuvalu in respect of such subscription, consisting of 4 subscription votes and 500 membership votes.

3. Effective Date of Membership: Tuvalu shall become a member of the Association with a subscription as set forth in paragraph 2(b) of

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this Resolution as of the date when Tuvalu shall have complied with the following requirements: (a) become a member of the International Bank for Reconstruc- tion and Development; (b) made the payments called for by paragraph 2 of this Resolution; (c) deposited with the International Bank for Reconstruction and Development an instrument stating that it has accepted in accordance with its law the Articles and all the terms and conditions prescribed in this Resolution, and that it has taken all steps necessary to enable it to carry out all its obligations under the Articles and this Resolution; and (d) signed the original Articles held in the archives of the Interna- tional Bank for Reconstruction and Development.

4. Additional Subscription: Upon or after acceptance of membership, Tuvalu shall also be authorized at its option to make an additional subscription in the amount of $ 7,215, comprising subscriptions corresponding to the Third, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, Tenth, Eleventh, Twelfth, Thirteenth, Fourteenth and Fif- teenth Replenishments, and to the Multilateral Debt Relief Initia- tive, which shall carry 41,460 votes, calculated on the basis of 260 subscription votes and 41,200 membership votes, and which shall be subject to the following terms and conditions: (a) Payment of such additional subscription shall be made in the currency of Tuvalu within 30 days after Tuvalu notifies the Asso- ciation of its intention to make such additional subscription. (b) The rights and obligations of the Association and Tuvalu with regard to such additional subscription shall be the same (except as otherwise provided in this Resolution) as those which govern the 90% portion of the initial subscriptions of original members payable under Article II, Section 2(d) of the Articles by members listed in Part II of Schedule A of the Arti- cles, provided, however, that the provisions of Article IV, Sec- tion 2 of the Articles shall not be applicable to such subscription.

5. Limitation on Period for Fulfillment of Requirements of Member- ship: Tuvalu may fulfill the requirements for membership in the Association pursuant to this Resolution until December 31, 2010, or such later date as the Executive Directors may determine.

(Adopted May 3, 2010)

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RESOLUTION ADOPTED BY THE BOARD OF GOVERNORS OF IDA AT THE 2010 ANNUAL MEETINGS

Resolution No. 226

Financial Statements, Accountants’ Report and Administrative Budget

RESOLVED:

THAT the Board of Governors of the Association consider the Financial Statements, Accountants’ Report and Administrative Bud- get, included in the 2010 Annual Report, as fulfilling the requirements of Article VI, Section 11, of the Articles of Agreement and of Section 8 of the By-Laws of the Association.

(Adopted October 8, 2010)

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RESOLUTIONS ADOPTED BY THE COUNCIL OF GOVERNORS OF MIGA BETWEEN THE 2009 AND 2010 ANNUAL MEETINGS

Resolution No. 86

Modernizing MIGA’s Mandate: Amendments to MIGA’s Convention

WHEREAS, Article 59 of the MIGA Convention Establishing the Multilateral Investment Guarantee Agency (“the MIGA Convention”) provides that, “this Convention and its Annexes may be amended by vote of three-fifths of the Governors exercising four-fifths of the total voting power”; and

WHEREAS, Article 60 of the MIGA Convention provides that, “Any proposal to amend this Convention, whether emanating from a member or a Governor or a Director, shall be communicated to the Chairman of the Board who shall bring the proposal before the Board. If the proposed amendment is recommended by the Board, it shall be submitted to the Council for approval in accordance with Article 59. When an amendment has been duly approved by the Council, the Agency shall so certify by formal communication addressed to all members. Amendments shall enter into force for all members ninety days after the date of the formal communication unless the Council shall specify a different date.”

NOW THEREFORE the Council of Governors hereby resolves that:

1. Article 11 of the MIGA Convention shall henceforth read as follows:

Article 11. Covered Risks

(a) Subject to the provisions of Sections (b) and (c) below, the Agency may guarantee eligible investments against a loss resulting from one or more of the following types of risk: (i) Currency Transfer any introduction attributable to the host government of restrictions on the transfer outside the host country of its currency into a freely usable currency or another currency acceptable to the holder of the guarantee, including a failure of the host government to act within a reasonable

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period of time on an application by such holder for such transfer; (ii) Expropriation and Similar Measures any legislative action or administrative action or omission attributable to the host government which has the effect of depriving the holder of a guarantee of his ownership or control of, or a substantial benefit from, his investment, with the exception of non-discriminatory measures of general application which governments normally take for the purpose of regulating economic activity in their territories; (iii) Breach of Contract any repudiation or breach by the host government of a contract with the holder of a guarantee, when (a) the holder of a guarantee does not have recourse to a judicial or arbitral forum to determine the claim of repudiation or breach, or (b) a decision by such forum is not rendered within such reasonable period of time as shall be prescribed in the contracts of guarantee pursuant to the Agency’s regulations, or (c) such a decision cannot be enforced; and (iv) War and Civil Disturbance any military action or civil disturbance in any territory of the host country to which this Convention shall be applicable as provided in Article 66.

(b) In addition, the Board, by special majority, may approve the extension of coverage under this Article to specific noncommer- cial risks other than those referred to in Section (a) above, but in no case to the risk of devaluation or depreciation of currency.

(c) Losses resulting from the following shall not be covered: (i) any host government action or omission to which the holder of the guarantee has agreed or for which he has been responsible; and (ii) any host government action or omission or any other event occurring before the conclusion of the contract of guarantee.

2. Article 12 of the MIGA Convention shall henceforth read as follows:

Article 12. Eligible Investments

(a) Eligible investments shall include equity interests, including medium- or long-term loans made or guaranteed by holders of

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equity in the enterprise concerned, and such forms of direct investment as may be determined by the Board.

(b) Loans other than those mentioned in Section (a) are eligible for coverage (i) if they are made to finance or are otherwise related to a specific investment or project in which some other form of direct investment is present, whether or not guaranteed by the Agency and regardless of when such other investment was made, or (ii) as may be otherwise approved by the Board by special majority.

(d) Guarantees shall generally be restricted to investments the implementation of which begins subsequent to the registration of the application for the guarantee by the Agency or receipt by the Agency of other satisfactory evidence of investor intent to obtain guarantees from the Agency. Such investments may include: (i) a transfer of foreign exchange made to modernize, expand, or develop an existing investment, in which case both the original investment and the additional investment may be considered eligible for coverage; (ii) the use of earnings from existing investments which could otherwise be transferred outside the host country; (iii) the acquisition of an existing investment by a new eligible investor; (iv) existing investments where an eligible investor is seeking to insure a pool of existing and new investments; (v) existing investments owned by an eligible investor where there is an improvement or enhancement of the underlying project or the investor otherwise demonstrates medium- or long-term commitment to the project, and the Agency is satisfied that the project continues to have a high developmental impact in the host country; and (vi) such other investments as may be approved by the Board by special majority.

(e) In guaranteeing an investment, the Agency shall satisfy itself as to: (i) the economic soundness of the investment and its contribution to the development of the host country;

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(ii) compliance of the investment with the host country’s laws and regulations; (iii) consistency of the investment with the declared development objectives and priorities of the host country; and (iv) the investment conditions in the host country, including the availability of fair and equitable treatment and legal protection for the investment.

(Adopted July 30, 2010)

Resolution No. 87

2010 Regular Election of Directors

RESOLVED:

(A) THAT the 2010 Regular Election of Directors shall take place in accordance with the attached Rules; and (B) THAT a Regular Election of Directors shall take place in connection with the Annual Meeting of the Council of Governors in 2012.

(Adopted August 2, 2010)

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RESOLUTION ADOPTED BY THE COUNCIL OF GOVERNORS OF MIGA AT THE 2010 ANNUAL MEETINGS

Resolution No. 88

Financial Statements and the Report of the Independent Accountants

RESOLVED:

THAT the Council of Governors of the Agency consider the Finan- cial Statements, and the Report of Independent Accountants included in the 2010 Annual Report, as fulfilling the requirements of Article 29 of the MIGA Convention and of Section 16(b) of the By-Laws of the Agency.

(Adopted October 8, 2010)

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REPORTS OF THE EXECUTIVE DIRECTORS OF THE BANK

March 25, 2010

Membership of Tuvalu

1. In accordance with Section 19 of the By-Laws of the International Bank for Reconstruction and Development and Section 9 of the By-Laws of the International Development Association, the applications of Tuvalu for membership in the Bank and IDA are hereby submitted to the Boards of Governors.

2. On the basis of a quota of SDR 1.8 million in the International Monetary Fund, the corresponding obligatory subscription in the Bank is 211 shares of capital stock (“Obligatory Shares”). This subscription includes shares that would have been allocated to Tuvalu under the 1988 General Capital Increase as well as under all earlier general capital increases. Tuvalu is also authorized, but not obliged, to subscribe 250 shares under the terms and conditions of the 1979 Additional Capital Increase (“Optional Shares”).

3. The Bank does not have sufficient unallocated shares to offer the 250 Optional Shares to Tuvalu at this time. Arrangements will be made whereby Tuvalu will become a member of the Bank by sub- scribing to the 211 Obligatory Shares, with the understanding that, when additional shares become available for the purpose, Tuvalu will be given an opportunity to subscribe to the 250 Optional Shares.

4. The attached draft Resolutions on membership in the Bank and IDA conform substantially to the pattern for such Resolutions.

5. Representatives of Tuvalu have been consulted informally regarding the terms and conditions recommended in the attached draft Resolutions and they have raised no objection thereto.

6. The draft Resolutions . . . 1 are recommended for adoption by the Boards of Governors of the Bank and IDA, respectively.

(This report was approved and it recommendation was adopted by the Board of Governors on May 3, 2010)

1 This resolution was subsequently approved. See page 161.

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Report to the Boards of Governors of the IMF and the World Bank by the Joint Committee on the Remuneration of Executive Directors and their Alternates

June 19, 2010

Introduction

1. Pursuant to Section 14(e) of the By-Laws of the Fund and Sec- tion 13(e) of the By-Laws of the Bank, the undersigned were appointed to the 2010 Joint Committee on the Remuneration of Executive Directors and their Alternates (JCR).

2. The JCR met in Paris on June 19, 2010.

3. The JCR undertook a streamlined review of the remuneration and benefits of IMF and World Bank Executive Directors and Alter- nates, in line with the process started in 2000 to undertake a full- scale review every four years, with a streamlined review in the intervening years. The discussions focused on: • Executive Directors’ remuneration in light of recent salary developments in both institutions and experience with the methodology developed in the context of the full-scale 2008 review; and • The extension to Fund Executive Directors and Alternates of recent changes to the Fund’s Staff Retirement Plan. No other benefit changes were brought to the attention of the JCR for its consideration.

Remuneration

4. The JCR noted the following developments relating to remuneration: • The consumer price index (CPI) for the Washington Metropoli- tan area has risen by 1.9 percent (May 2009 to May 2010). The remuneration of the Managing Director of the Fund and the President of the Bank are linked to the May-to-May change in the Washington Metropolitan area CPI in years between structural reviews (normally carried out at the start of the appointment term) and will therefore be increased by 1.9 percent with effect from July 1, 2010. • The salary structure for the Fund’s staff has been increased uni- formly by 2.6 percent with effect from May 1, 2010. The salaries of the Fund’s Deputy Managing Directors, which are indexed on the same basis as the remuneration of the Managing Director, will be increased by 1.9 percent on July 1, 2010.

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• The proposed increase in the salary structure for the World Bank’s staff, which is currently pending with the Executive Board and is to be effective from July 1, 2010, averages 2.4 percent.1

5. The Committee noted the conclusion of the 2008 Committee that the primary internal reference for the remuneration of Fund and Bank Executive Directors should be the maintenance of a reasonable relationship to the salaries of the Heads of the two institutions. This relationship had been broadly stable over the past twenty years, and the 2008 Committee had considered the present ratio of 52.2 percent of the base salary of the Heads to be broadly appropriate. Consistent with the process for adjusting the remuneration of the Managing Director of the Fund and the President of the Bank, and barring exceptional or unexpected developments, the 2008 Committee had recommended that the 2009–2011 JCRs should propose a salary increase for Executive Directors equal to the year’s (May-to-May) percentage increase in the Consumer Price Index for the Washington-Baltimore Metropolitan (CPI). In line with these recommendations, the salaries of Executive Directors were increased by 5 percent in 2008, and no change was recommended in 2009 given that the May 2008-to-May 2009 CPI percentage increase was negative 0.2 percent.

6. The Committee is of the view that setting the salaries of Executive Directors as a proportion of the salaries of the Heads of the institutions remains a sound approach, given that it is consistent with the provisions of the By-Laws of the Fund and the Bank and the respective roles of the Executive Directors and the Heads of the two institutions as Chairmen of their Boards. This approach should also help ensure that the salaries of Executive Directors are appropriately positioned within the institutions’ overall salary hierarchies over time. It follows that the outcome of the periodic structural reviews of the remuneration of the Heads of the institutions should be carefully evaluated with respect to any warranted corrections in the salaries of Executive Directors. The periodic full-scale reviews of the salaries of Executive Directors would continue to provide an opportunity to assess whether their salaries are broadly consistent with the salaries of comparator positions in national public sectors.

1 This does not include the staff salary ranges at Grades J and K. The market reference points of salaries of Grades J and K will be raised by 1.9 percent, reflecting the May 2009 to May 2010 Washington-Baltimore CPI percentage change.

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7. The Committee considered how best to ensure that the 2008 methodology is consistently implemented going forward. On balance, the Committee feels that the best approach would be to ensure that the outcomes of the periodic structural reviews of the remuneration of the Heads of the institutions (normally at the start of the appointment term) are immediately and appropriately taken into account in recommended salary increases for Executive Direc- tors even if this would imply that the Governors could be periodi- cally asked to approve step adjustments in the salaries of Executive Directors. As recommended by the 2008 Committee, and barring exceptional circumstances, in interim years (2009–2011) JCRs would propose a salary increase for Executive Directors equal to the year’s CPI increase, consistent with the process for adjusting the remuneration of the Heads of the institutions.

8. Taking all the above considerations into account, the 2010 JCR recommends that the ratio of the remuneration of Executive Directors to the base salary of the Heads of the two institutions be maintained at 52.2 percent, consistent with the methodology adopted by the JCR in 2008, and followed in 2009. Accordingly, the Committee recommends an increase in the salary of Executive Directors equal to the May 2009 to May 2010 CPI increase for the Washington-Baltimore metropolitan area. This 1.9 percent increase would raise the salary of Executive Directors from $230,790 to $235,180 effective on July 1, 2010.

9. The JCR notes the conclusion of the 2008 full-scale review that, at 86.5 percent, the ratio between the salary of Alternate Executive Directors and Executive Directors continues to be appropriate. Accordingly, the JCR recommends the same 1.9 percent increase in the salary of alternate Executive Directors from $199,650 to $203,440 effective on July 1, 2010.

Benefits

10. Within the framework of the applicable resolutions of the Board of Governors, the JCR considered the possible extension of the recent changes to the IMF Staff Retirement Plan (SRP) to Fund Executive Directors and Alternates, and whether the extension of these benefit changes would require the approval of the Board of Governors because the changes are deemed to be significant, or may be left to

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the Executive Board to decide because the changes reflect actual costs or are minor.2

11. The following amendments to the Fund’s SRP would be applicable to active participants as of May 1, 2011 and thereafter: an adjustment to the grossing-up formulae used to determine pensionable gross remuneration; an update of the commutation factors used to determine lump sum pension payments to reflect the recently published United Nations Mortality Tables; and an improvement of the withdrawal benefit formula by reaching 200 percent of the highest average gross remuneration after 10 years of service rather than the current 19-year period.3

12. The Committee considers that there are compelling practical reasons for maintaining consistency of pension benefits between Exec- utive Directors and staff as different provisions would add greatly to administrative complexity and costs. The Committee also noted that earlier changes to staff retirement plans, most recently to the Fund’s SRP in 2008, had consistently been made applicable to Executive Directors and Alternates. The Committee further noted that, as a whole, the reforms would be cost neutral.

13. With regard to whether the extension of these benefit changes to Executive Directors would require the approval of the Board of Governors or may be left to the Fund’s Executive Board, the Com- mittee noted that both the changes to the SRP’s grossing-up formulae and the increases to the SRP’s commutation factors are technical changes. However, the improvement to the withdrawal benefit formula constitutes a significant change to existing benefits for eligible Executive Directors and their Alternates. For this reason, and given that the reforms have been presented as a package, the Committee concluded that the changes would require the approval of the Board of Governors pursuant to Board of Gover- nors Resolution No. 34-7 (7/20/79).

2 IMF Board of Governors Resolutions No. 34-7, adopted on July 20, 1979 and No. 31-1, adopted on October 16, 1975. 3 Additional changes aimed at modernizing the SRP and improving its attractive- ness to mid-career hires, which will be implemented later, are the pursuit of new pension transfer agreements and the addition of a voluntary savings plan to expand benefits portability and facilitate mobility.

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Recommendations Requiring a Vote by the Governors

14. In light of the recommendations on remuneration of Fund and Bank Executive Directors and their Alternates (paragraphs 8 and 9 above), the Committee recommends that the draft resolutions. . . 1 for the Fund and the Bank, included in Attachments I and II, be adopted by the respective Boards of Governors of the Fund and the Bank.

15. In light of the recommendation on benefits of Fund Executive Directors and their Alternates (paragraph 13 above), the Commit- tee recommends that the draft resolution for the Fund, included in Attachment III, be adopted by the Board of Governors of the Fund.

16. The Joint Committee directs the Secretary of the Fund and the Act- ing Vice President and Corporate Secretary of the Bank to trans- mit this report to the Boards of Governors of the Fund and the Bank, respectively, for a vote without meeting in accordance with Sections 13 and 14(e) of the By-Laws of the Fund and Sections 12 and 13(e) of the By-Laws of the Bank.

(This report was approved and its recommendation was adopted on July 30, 2010)

1 This resolution was subsequently approved. See page 163.

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June 28, 2010

2010 Regular Election of Executive Directors

1. Pursuant to Resolution No. 592 of the Board of Governors, a Regu- lar Election of Executive Directors will take place in connection with the 2010 Annual Meeting of the Board of Governors. It is proposed that this Regular Election be conducted by rapid means of communication so as to conclude a reasonable time in advance of November 1, 2010, when the term of office of the elected Executive Directors shall commence.

2. The Executive Directors have noted that the number of elected Executive Directors was increased to 19 in 1992, after a large increase in the membership, in order to preserve broad geographic representation which permits all major groups of countries to be represented. The number of elected Executive Directors was further increased to 20 in 2009 in order for member countries in Sub- Saharan Africa to be represented by three Executive Directors. The Executive Directors encourage that efforts be made for a balanced representation among the three chairs as envisaged in paragraph 17 of the Board paper entitled “Enhancing Voice and Participation of Developing and Transition Countries in the World Bank Group: Implementation of Reforms” (R2008-0244/1, dated December 11, 2008). As in past years, there is strong feeling among the Executive Directors that, in the unlikely event that there was lack of wide geographical and balanced representation, prompt corrective action would be called for.

3. The Executive Directors recommend that the maximum and minimum percentages of eligible votes required for election of an Exec- utive Director be 10 percent and 2 percent, respectively. They believe that such percentages would provide a range that is broad enough in the circumstances.

4. The Executive Directors recommend that the date from which the 2010 Regular Election will be effective be November 1, 2010.

5. The Executive Directors note that under the Articles of Agreement of the International Finance Corporation (the Corporation) and the International Development Association (the Association) the elected Directors will serve ex officio as members of the Board of Directors of the Corporation and Executive Directors of the Association.

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6. The Executive Directors recommend that the subsequent Regular Election of Executive Directors take place in connection with the Annual Meeting of the Board of Governors in 2012.

7. The Executive Directors recommend the adoption by the Board of Governors of the attached Rules for the 2010 Regular Election of Executive Directors, which provide for the conduct of this Election by rapid means of communication.

8. The draft Resolution . . .1, embodying the above recommendations, is proposed for adoption by the Board of Governors

(This report was approved and its recommendation was adopted on August 2, 2010)

1 This resolution was subsequently approved. See page 164.

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Rules for the 2010 Regular Election of Executive Directors

Definitions

1. In these Rules, unless the context shall otherwise require, (a) “Articles” means the Articles of Agreement of the Bank. (b) “Board” means the Board of Governors of the Bank. (c) “Chairman” means the Chairman of the Board or a Vice Chairman acting as Chairman. (d) “Governor” includes the Alternate Governor and, for actions taken at any meeting, a temporary Alternate Governor, when acting for the Governor. (e) “Secretary” means the Corporate Secretary or any acting Cor- porate Secretary of the Bank. (f) “Election” means the 2010 Regular Election of Executive Directors. (g) “Eligible votes” means the total number of votes that can be cast in the election.

2. All actions taken under these Rules, including communications by the Secretary and the Chairman and nominations and balloting by the Governors, may be taken by rapid means of communication.

Timing of Election

3. The election shall be held by requesting nominations and conducting ballots so as to conclude a reasonable time in advance of November 1, 2010, when the term of office of the elected Executive Directors shall commence.

Basic Rules—Schedule B

4. Subject to the adjustment set forth in the Rules, the provisions of Schedule B of the Articles shall apply to the conduct of the election, except that: (a) “two percent” shall be substituted for “fourteen percent” in Paragraphs 2 and 5 and “ten percent” shall be substituted for “fifteen percent” in Paragraphs 3, 4 and 5 thereof; and (b) “twenty persons” shall be substituted for “seven persons” in Paragraphs 2, 3 and 6, “nineteen persons” shall be substituted for “six persons” in Paragraph 6, and “the twentieth” shall be substituted for the “seventh” in Paragraph 6 thereof.

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Executive Directors to be Elected

5. Twenty Executive Directors shall be elected.

Supervision of the Election

6. The Chairman shall appoint such tellers and other assistants and take such other action as he deems necessary for the conduct of the election.

Nominations

7. (a) The Secretary shall request nominations from Governors during a suitable period specified by the Secretary. (b) Each nomination shall be made on a nomination form furnished by the Secretary, signed by the Governor or Governors making the nomination and submitted to the Secretary. (c) Any person nominated by one or more Governors entitled to vote in the election shall be eligible for election as Executive Director. (d) A Governor may nominate only one person. (e) If a nominee withdraws from the ballot after the closing date of the nomination period, but before the closing date of the ballot, the Secretary shall inform all Governors eligible to vote of such withdrawal and invite them to submit nominations of a candidate by rapid means of communication, during a suitable period specified by the Secretary. At the end of the prescribed period of time for this nomination, the Secretary shall compile a new list of candidates with all individuals who were nominated by at least one Governor in either nomination period, and circulate that list by rapid means of communication to all Governors eligible to vote with an invitation to vote through similar channels before the end of the balloting period.

Balloting

8. (a) Upon the closing of nominations, the Secretary shall send to all Governors entitled to vote in the election the list of candidates for the election, together with an invitation to Governors to vote in the first ballot, and announce the deadline for receipt of ballots. (b) One ballot form shall be furnished to each Governor entitled to vote. On any particular ballot, only ballot forms distributed for that ballot shall be counted.

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9. Each ballot shall be taken as follows: (a) Ballots shall be conducted by deposit of ballot forms, signed by Governors eligible to vote, with the Secretary. The first ballot shall take place after the close of nominations, concluding no later than the first day of the 2010 Annual Meeting of the Board. (b) When a ballot shall have been completed, the Secretary shall cause the ballots to be counted and, as soon as practicable after the tellers have completed their tally of the ballots, shall announce the names of the persons elected. If a succeeding ballot is necessary, the Secretary shall announce the names of the nominees to be voted on, the members whose Governors are eligible to vote and the time period for balloting. (c) If the tellers shall be of the opinion that any particular ballot is not properly executed, they shall, if possible, afford the Gover- nor concerned an opportunity to correct it before tallying the results; and such ballot, if so corrected, shall be deemed to be valid.

10. When on any ballot the number of nominees shall not exceed the number of Executive Directors to be elected, each nominee shall be deemed to be elected by the number of votes received by him on such ballot; provided, however, that, if on such ballot the votes of any Governor shall be deemed under Paragraph 4 of Schedule B4 to have raised the votes cast for any nominee above ten percent of the eligible votes, no nominee shall be deemed to have been elected who shall not have received on such ballot a minimum of two percent of the eligible votes, and a succeeding ballot shall be taken for which any nominee not elected shall be eligible.

11. If, as a result of the first ballot, the number of Executive Directors to be elected in accordance with Section 5 above shall not have

4 Paragraph 4 of Schedule B reads as follows: 4. In determining whether the votes cast by a governor are to be deemed to have raised the total of any person above ten percent of the eligible votes, the ten percent shall be deemed to include, first, the votes of the governor casting the largest number of votes for such person, then the votes of the governor casting the next largest number, and so on until ten percent is reached.

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been elected, a second, and if necessary, further ballots shall be taken. The Governors entitled to vote on such succeeding ballots shall be only: (a) those who voted on the preceding ballot for any nominee not elected; and (b) those Governors whose votes for a nominee elected on the preceding ballot are deemed under Paragraph 4 of Schedule B to have raised the votes cast for such nominee above ten percent of the eligible votes.

12. If the votes cast by a Governor bring the total votes received by a nominee from below to above ten percent of the eligible votes, all the votes cast by this Governor shall be deemed to have been cast for the benefit of that nominee without raising the total votes of the nominee above ten percent.

13. If on any ballot two or more Governors having an equal number of votes shall have voted for the same nominee and the votes of one or more, but not all, of such Governors could be deemed under Para- graph 4 of Schedule B not to have raised the total votes of the nominee above ten percent of the eligible votes, the Chairman shall determine by lot the Governor or Governors, as the case may be, who shall be entitled to vote on the next ballot.

14. Any member whose Governor has voted on the last ballot and whose votes did not contribute to the election of an Executive Director may, before the effective date of the election, as set forth in Section 18 below, designate an Executive Director who was elected, and that member’s votes shall be deemed to have counted toward the election of the Executive Director so designated.

Abstention from Voting

15. If a Governor shall abstain from voting on any ballot, he shall not be entitled to vote on any subsequent ballot and his votes shall not be counted within the meaning of Section 4(g) of Article V towards the election of any Executive Director. If at the time of any ballot a member shall not have a duly appointed Governor, such member shall be deemed to have abstained from voting on that ballot.

Elimination of Nominees

16. If on any ballot two or more nominees shall receive the same lowest number of votes, no nominee shall be dropped from the next succeeding ballot, but if the same situation is repeated on such succeed-

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ing ballot, the Chairman shall eliminate by lot one of such nominees from the next succeeding ballot.

Announcement of the Result

17. After the tally of the last ballot, the Chairman shall cause to be distributed a statement setting forth the result of the election.

Effective Date of Election

18. The effective date of the election shall be November 1, 2010, and the term of office of the elected Executive Directors shall commence on that date. Incumbent elected Executive Directors shall serve through the day preceding such date.

General

19. Any question arising in connection with the conduct of the election shall be resolved by the tellers, subject to appeal, at the request of any Governor, to the Chairman and from him to the Board. When- ever possible, any such questions shall be put without identifying the members or Governors concerned.

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INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

2010 REGULAR ELECTION OF EXECUTIVE DIRECTORS STATEMENT OF RESULTS OF ELECTION, OCTOBER 8, 2010

Members Whose Votes Number of Total Candidate Elected Counted Toward Election Votes Votes Abdulrahman M. ALMOFADHI 45,045 Saudi Arabia 45,045

Anna BRANDT 54,039 Denmark 13,701 Estonia 1,173 Finland 8,810 Iceland 1,508 Latvia 1,634 Lithuania 1,757 Norway 10,232 Sweden 15,224

Felix Alberto CAMARASA 37,499 Argentina 18,161 Bolivia 2,035 Chile 7,181 Paraguay 1,479 Peru 5,581 Uruguay 3,062

Pulok CHATTERJI 54,945 Bangladesh 5,104 Bhutan 729 India 45,045 Sri Lanka 4,067

Piero CIPOLLONE 56,705 Albania 1,080 Greece 1,934

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Members Whose Votes Number of Total Candidate Elected Counted Toward Election Votes Votes Italy 45,045 Malta 1,324 Portugal 5,710 San Marino 845 Timor-Leste 767 Agapito Mendes DIAS 27,742 Benin 1,118 Burkina Faso 1,118 Cameroon 1,777 Cape Verde 758 Central African Republic 1,112 Chad 1,112 Comoros 532 Congo, Democratic Republic of 2,893 Congo, Republic of 1,177 Cote d’Ivoire 2,766 Djibouti 809 Equatorial Guinea 965 Gabon 1,237 Guinea-Bissau 790 Mali 1,412 Mauritania 1,150 Mauritius 1,492 Niger 1,102 Sao Tome and Principe 745 Senegal 2,322 Togo 1,355 Marta GARCIA JAUREGUI 72,786 Costa Rica 483 El Salvador 391 Guatemala 2,251 Honduras 891 Mexico 19,054 Nicaragua 858 Spain 28,247 Venezuela, Rep. Bolivariana de 20,611

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Members Whose Votes Number of Total Candidate Elected Counted Toward Election Votes Votes Vadim GRISHIN 45,045 Russian Federation 45,045

James HAGAN 56,261 Australia 24,714 Cambodia 464 Kiribati 715 Korea, Republic of 16,067 Marshall Islands 719 Micronesia, Federated States of 729 Mongolia 716 New Zealand 7,486 Palau 266 Papua New Guinea 1,544 Samoa 781 Solomon Islands 763 Tuvalu 461 Vanuatu 836

Merza H. HASAN 47,042 Bahrain 1,353 Egypt, Arab Republic of 7,358 Iraq 3,058 Jordan 1,638 Kuwait 13,530 Lebanon 590 Libya 8,090 Maldives 719 Oman 1,811 Qatar 1,346 Syrian Arab Republic 2,452 United Arab Emirates 2,635 Yemen, Republic of 2,462

Konstantin HUBER 75,650 Austria 11,313 Belarus 3,573

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Members Whose Votes Number of Total Candidate Elected Counted Toward Election Votes Votes Belgium 29,233 Czech Republic 6,558 Hungary 8,300 Kosovo 1,216 Luxembourg 1,902 Slovak Republic 3,466 Slovenia 1,511 Turkey 8,578

Hekinus MANAO 41,096 Brunei Darussalam 2,623 Fiji 1,237 Indonesia 15,231 Lao People’s Democratic Rep. 428 Malaysia 8,494 Myanmar 2,734 Nepal 1,218 Singapore 570 Thailand 6,599 Tonga 744 Vietnam 1,218

Renosi MOKATE 29,543 Angola 2,926 Nigeria 12,905 South Africa 13,712

Michel MORDASINI 52,427 Azerbaijan 1,896 Kazakhstan 3,235 Kyrgyz Republic 1,357 Poland 11,158 Serbia 3,096 Switzerland 26,856 Tajikistan 1,310 Turkmenistan 776 Uzbekistan 2,743

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Members Whose Votes Number of Total Candidate Elected Counted Toward Election Votes Votes Marie-Lucie MORIN 62,217 Antigua and Barbuda 770 Bahamas, The 1,321 Barbados 1,198 Belize 836 Canada 45,045 Dominica 754 Grenada 781 Guyana 1,308 Ireland 5,521 Jamaica 2,828 St. Kitts and Nevis 525 St. Lucia 802 St. Vincent and the Grenadines 528

Rogerio STUDART 58,124 Brazil 33,537 Colombia 6,602 Dominican Republic 2,342 Ecuador 3,021 Haiti 1,317 Panama 635 Philippines 7,094 Suriname 662 Trinidad and Tobago 2,914

Hassan Ahmed TAHA 26,943 Botswana 865 Burundi 966 Eritrea 843 Ethiopia 1,228 Gambia, The 793 Kenya 2,711 Lesotho 913 Liberia 713

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Members Whose Votes Number of Total Candidate Elected Counted Toward Election Votes Votes Malawi 1,344 Mozambique 1,180 Namibia 1,773 Rwanda 1,296 Seychelles 513 Sierra Leone 968 Sudan 1,100 Swaziland 690 Tanzania 1,545 Uganda 867 Zambia 3,060 Zimbabwe 3,575

Javed TALAT 51,544 Afghanistan 550 Algeria 9,502 Ghana 1,775 Iran, Islamic Republic of 23,936 Morocco 5,223 Pakistan 9,589 Tunisia 969

Rudolf TREFFERS 73,146 Armenia 1,389 Bosnia and Herzegovina 799 Bulgaria 5,465 Croatia 2,543 Cyprus 1,711 Georgia 1,834 Israel 5,000 Macedonia, FYR 677 Moldova 1,618 Montenegro 938 Netherlands 35,753 Romania 4,261 Ukraine 11,158

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Members Whose Votes Number of Total Candidate Elected Counted Toward Election Votes Votes Shaolin YANG 45,049 China 45,049

Total Number of Members Voted 179 1,012,848

/s/ /s/ Junhong Chang (China) Wesley George Hughes (Jamaica) Teller Teller

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June 24, 2010

Transfer from Surplus to Replenish the Trust Fund for Gaza and West Bank

1. On October 19, 1993, by the terms of Resolution No. 93-11 and IDA 93-7, the Executive Directors of the International Bank for Recon- struction and Development (Bank) and the International Develop- ment Association (Association) approved the establishment of the Trust Fund for Gaza. On November 11, 1993, by the terms of Resolu- tion No. 483, the Board of Governors of the Bank approved the transfer from surplus, by way of grant, of US$50 million to the Trust Fund for Gaza. On August 1, 1995, by the terms of Resolution No. 95-6 and IDA 95-3, the Executive Directors of the Bank and the Association amended Resolution No. 93-11 and IDA 93-7 by (a) expanding the territorial scope of the activities to be financed out of the Trust Fund for Gaza to include such areas, sectors and activities in the West Bank which are or will be under the jurisdiction of the Palestinian Authority pursuant to the relevant Israeli-Palestinian agreements; and (b) changing the name of the “Trust Fund for Gaza” to “Trust Fund for Gaza and West Bank.” On October 12, 1995, by the terms of Resolution No. 500, the Board of Governors approved the transfer to the Trust Fund for Gaza and West Bank, by way of grant out of the Bank’s FY95 net income, of US$90 million. On December 19, 1996, by the terms of Resolution No. 96-11 and No. IDA 96-7, the Executive Directors of the Bank and the Associa- tion further amended Resolution No. 93-11 and IDA 93-7 by (a) introducing flexibility to the terms under which resources may be provided out of the Trust Fund for Gaza and West Bank; and (b) requiring that the repayment of trust fund credits made out of the Trust Fund for Gaza and West Bank accrue to the Association as part of its resources. Additional funding was provided by transfers from surplus or net income approved by the Bank’s Board of Governors on February 3, 1997 (US$90 million, Resolution 511), July 13, 1998 (US$90 million, Resolution No. 519), September 30, 1999 ($60 million, Resolution No. 529), February 4, 2004 (US$80 million, Resolu- tion No. 556), January 31, 2007 (US$50 million, Resolution No. 584), June 17, 2008 (US$55 million, Resolution No. 589), and July 10, 2009 (US$55 million, Resolution No. 599).

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2. In view of the material contribution that the Bank’s financial assistance makes to Palestinian economic welfare, the Executive Direc- tors consider that the Trust Fund for Gaza and West Bank should be replenished. They recommend that the Board of Governors authorize the transfer from surplus of the amount of US$55 million to the Trust Fund for Gaza and West Bank.

3. Accordingly, the Executive Directors recommend that the Board of Governors adopt the draft Resolution . . .1

(This report was approved and its recommendation was adopted on August 9, 2010)

1 This resolution was subsequently approved. See page 164.

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July 19, 2010

Forthcoming Annual Meetings of the Boards of Governors Change of Dates for the 2010 and 2011 Annual Meetings

On September 28, 2009, the Board of Governors adopted Resolu- tion No. 600 providing that the 2010 Annual Meetings should be convened in Washington, D.C., beginning on Monday, October 11, 2010, and that the 2011 Annual Meetings shall be convened in Washington D.C. on Monday, September 26, 2011.

The World Bank Group and the International Monetary Fund (Fund) have commenced reforms of the Annual Meetings as part of longer term undertaking to strengthen shareholder engagement and fully leverage the Annual Meetings to advance the institutions’ mandates and outreach. The reforms that are proposed to be introduced at the 2010 Annual Meetings focus on changes to the Plenary, modernization of the overall Annual Meetings, and improved accountability and ministerial engagement. To enhance the value of the Plenary for setting the stage and for highlighting the priority issues for the entire Annual Meetings event, the Plenary will precede the meetings of the Develop- ment Committee and International Monetary and Financial Commit- tee. To accommodate the change in the timing of the Plenary, the Executive Directors of the Bank and the Fund have proposed changes in the dates on which the 2010 and 2011 Annual Meetings will convene.

Consequently, it is recommended that the Board of Governors adopt the Resolution . . . 1, which changes the dates on which the 2010 and 2011 Annual Meetings will convene, by a vote without meeting.

(This report was approved and its recommendation was adopted on August 16, 2010)

1 This resolution was subsequently approved. See page 165.

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August 5, 2010

Allocation of FY10 Net Income

1. The General Reserve (including cumulative exchange rate translation adjustment) of the IBRD as of June 30, 2010 was $25,481 million. As of that date, the surplus of the IBRD was $257 million, and the Special Reserve created under Article IV, Section 6 of the IBRD’s Articles of Agreement totaled $293 million. For the fiscal year ended June 30, 2010 (FY10), the IBRD experienced a net loss on a reported basis of $1,077 million. IBRD’s Operating Income (referred to as “Income before fair value adjustment on non-trading portfolios, net and Board of Governors-approved transfers” in the Statement of Income in FY10 external financial statements) is used as the basis for annual net income allocation decisions, subject to certain standard adjustments. For FY10, Operating Income was $800 million, which was adjusted by a $32 million transfer from the pension reserve representing the excess of the SRP, RSBP and PEBP accounting expense over cash contributions, a $12 million transfer from the Restricted Retained Earnings Account, and an $80 million transfer to the LTIP Reserve to arrive at allocable net income.

2. The Executive Directors have considered what action to take, or to recommend that the Board of Governors take, with respect to FY10 net income. The Executive Directors have concluded that the interests of the IBRD and its members would best be served by the following dispositions of the net income of the IBRD: (a) The addition of $281 million to the General Reserve, plus or minus any rounding amount less than $1 million; (b) the transfer to the International Development Association, by way of a grant of $383 million, from FY10 allocable net income, which amount would be usable to provide financing in the form of grants in addition to loans; and (c) the retention as surplus of $100 million.

3. Accordingly, the Executive Directors recommend that the Board of Governors note with approval the present Report and adopt the draft Resolution. . . .1

(This report was approved and its recommendation was adopted on October 8, 2010)

1 This resolution was subsequently approved. See page 166.

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REPORT OF THE BOARD OF DIRECTORS OF IDA

January 14, 2010

Amendment to Resolution No. 211 Additions to Resources: Financing the Multilateral Debt Relief Initiative

1. On April 21, 2006, the Board of Governors of the International Development Association (IDA) adopted Resolution No. 211 entitled “Additions to IDA Resources: Financing the Multilateral Debt Relief Initiative” (MDRI Resolution). The Multilateral Debt Relief Initiative (MDRI) provides 100 percent cancellation of eligible debt owed to IDA by countries reaching the Completion Point for the Heavily Indebted Poor Country (HIPC) Initiative. Starting on July 1, 2006 and over the next four decades of the MDRI implementation, IDA is canceling an estimated nominal amount of SDR 23.8 billion (equivalent to USD 36.2 billion) of credit reflows from eligible HIPC countries.

2. Donors have agreed to provide full and timely compensation on a dollar-for-dollar basis to IDA for forgone credit reflows due to debt cancellation under the MDRI. As of June 30, 2009, IDA has received donor commitments to the MDRI in the amount of USD 32.2 billion at the agreed replenishment foreign exchange rates, representing 85.8 percent of total financing requirements based on updated cost estimates for the MDRI as of September 30, 2007. This includes firm, unqualified commitments covering 17.9 percent of the total financing requirements.

3. Under the MDRI replenishment, IDA needs to receive unqualified (i.e., firm appropriated) donor commitments in order for IDA to extend new credits and grants against the donor financing. While donors can deposit qualified commitments for the MDRI, IDA cannot, under the terms of the MDRI Resolution5, use qualified commitments as available financing for extending new credits and grants. Further, these commitments need to be provided over a rolling decade given that IDA utilizes an advance commitment

5 Paragraph 7 of Resolution 211 of IDA’s Board of Governors: “Additions to Resources: Financing the Multilateral Debt Relief Initiative” adopted April 21, 2006, the main text of which is attached as Annex to this Report for ease of reference.

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scheme which uses IDA’s stream of available future credit reflows to back disbursements on approved credits and grants.

4. The Executive Directors have considered what action to take, or to recommend to the Board of Governors, with respect to the MDRI financing shortfall. The Executive Directors considered various options and agreed to follow an approach of counting a portion of the amount of qualified commitments for the MDRI towards IDA’s commitment authority. This approach would entail an amendment to the MDRI Resolution. The proposed option will be similar to the approach of the African Development Fund that counts 85 percent of the amount of qualified commitments for the MDRI. Exec- utive Directors noted that this practice would not be used in IDA’s regular replenishments.

5. The Executive Directors continue to affirm the need for the provision of firm, unqualified financing commitments over a rolling decade in order to maintain IDA’s commitment authority over the disbursement period of each future replenishment. The Executive Directors have also approved the use of internal resources to cover any remaining MDRI financing shortfall in IDA15.

6. Accordingly, the Executive Directors recommend that the Board of Governors adopt the Resolution . . .1 attached to this Report.

(This report was approved and its recommendation was adopted on March 1, 2010)

1 This resolution was subsequently approved. See page 168.

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REPORTS OF THE BOARD OF DIRECTORS OF MIGA

January 28, 2010

Modernizing MIGA’s Mandate: Recommended Amendments to MIGA’s Convention

Overview 1. The Board of Directors of the Multilateral Investment Guarantee Agency (MIGA), following extensive and detailed discussions with MIGA’s management, believes that the Agency’s restrictive Conven- tion1 prevents it from fully meeting its development mandate. Therefore, the Board recommends that the Council of Governors amend the Convention, in order to expand the Agency’s scope and allow it to increase the breadth of projects in developing countries that would potentially be eligible for MIGA coverage. The Board of Directors believes that this expansion of scope would significantly enhance MIGA’s development impact in delivering on its mission.

2. Specifically, the Directors recommend four amendments to MIGA’s Convention to: • allow coverage for stand-alone debt • broaden the process for investor registration • broaden the scope for coverage for existing assets • eliminate the requirement of a joint application by the investor and the host country to authorize coverage for specific additional non-commercial risks. In all other respects, MIGA’s Convention would remain unchanged and as originally specified.

3. This would be the first time that the substantive Articles of the Convention have been amended since the Agency’s inception in 1988.2 As such, it is the most significant in a series of steps that MIGA has taken to restore its relevance as a multilateral PRI provider in a constantly evolving marketplace.

1 Convention Establishing the Multilateral Investment Guarantee Agency, submitted to Governments by the Board of Governors of the International Bank for Recon- struction and Development, Washington, October 11, 1985. 2 The Schedules to the Convention have been amended in accordance with Article 59(b) of the Convention, which sets out different voting and procedural requirements (i.e., a lower voting threshold).

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4. The recommended amendments to MIGA’s Convention do not alter the Agency’s core mandate of promoting productive foreign direct investment into developing member countries; rather, the purpose of these changes is to closer align MIGA with market practices in the PRI industry and allow MIGA to more effectively pursue its development mandate.

Recommended Changes to the Text of the MIGA Convention

5. The proposal which addresses Eliminating the Requirement of a Joint Application by the Investor and the Host Country to Autho- rize Coverage for Specific Additional Non-commercial Risks per- tains to Article 11 of the MIGA Convention. It is recommended that Article 11 be amended as follows:

Article 11. Covered Risks (a) Subject to the provisions of Sections (b) and (c) below, the Agency may guarantee eligible investments against a loss resulting from one or more of the following types of risk: (i) Currency Transfer any introduction attributable to the host government of restrictions on the transfer outside the host country of its currency into a freely usable currency or another currency acceptable to the holder of the guarantee, including a failure of the host government to act within a reasonable period of time on an application by such holder for such transfer; (ii) Expropriation and Similar Measures any legislative action or administrative action or omission attributable to the host government which has the effect of depriving the holder of a guarantee of his ownership or control of, or a substantial benefit from, his investment, with the exception of non-discriminatory measures of general application which governments normally take for the purpose of regulating economic activity in their territories; (iii) Breach of Contract any repudiation or breach by the host government of a contract with the holder of a guarantee, when (a) the holder of a guarantee does not have recourse to a judicial or arbitral forum to determine the claim of repudiation or breach, or (b) a decision by such forum is not rendered within such reasonable period of time as shall be prescribed in the contracts of guarantee pursuant to the

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Agency’s regulations, or (c) such a decision cannot be enforced; and (iv) War and Civil Disturbance any military action or civil disturbance in any territory of the host country to which this Convention shall be applicable as provided in Article 66.

(b) Upon the joint application of the investor and the host country, In addition, the Board, by special majority, may approve the extension of coverage under this Article to specific non-commercial risks other than those referred to in Section (a) above, but in no case to the risk of devaluation or depreciation of currency.

6. The proposals which would: (i) allow Coverage for Stand-alone Debt; (ii) Broaden the Process for Investor Registration; and (iii) Broaden the Scope for Coverage for Existing Assets, all pertain to Article 12 of the MIGA Convention. It is recommended that Article 12 be amended as follows:

Article 12. Eligible Investments (a) Eligible investments shall include equity interests, including medium- or long-term loans made or guaranteed by holders of equity in the enterprise concerned, and such forms of direct investment as may be determined by the Board.

(b) Loans other than those mentioned in Section (a) above are eligible for coverage (i) if they are made to finance or are otherwise related to a specific investment or project in which some other form of direct investment is present, whether or not guaranteed by the Agency and regardless of when such other investment was made, or (ii) as may be otherwise approved by the Board by special majority. The Board, by special majority, may extend eligibility to any other medium- or long-term form of investment, except that loans other than those mentioned in Section (a) above may be eligible only if they are related to a specific investment covered or to be covered by the Agency.

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(c) (d) Guarantees shall generally be restricted to investments the implementation of which begins subsequent to the registration of the application for the guarantee by the Agency or receipt by the Agency of other satisfactory evidence of investor intent to obtain guarantees from the Agency. Such investments may include: (i) any transfer of foreign exchange made to modernize, expand, or develop an existing investment, in which case both the original investment and the additional investment may be considered eligible for coverage; and (ii) the use of earnings from existing investments which could otherwise be transferred outside the host country;. (iii) the acquisition of an existing investment by a new eligible investor; (iv) existing investments where an eligible investor is seeking to insure a pool of existing and new investments; (v) existing investments owned by an eligible investor where there is an improvement or enhancement of the underlying project or the investor otherwise demonstrates a medium- or long-term commitment to the project, and the Agency is satisfied that the project continues to have a high developmental impact in the host country; and (vi) such other investments as may be approved by the Board by special majority.

(d) (e) In guaranteeing an investment, the Agency shall satisfy itself as to: (i) the economic soundness of the investment and its contribution to the development of the host country; (ii) compliance of the investment with the host country’s laws and regulations; (iii) consistency of the investment with the declared development objectives and priorities of the host country; and (iv) the investment conditions in the host country, including the availability of fair and equitable treatment and legal protection for the investment.

Procedure for Amending the MIGA Convention 7. The procedure for amending MIGA’s Convention is set forth in Article 60, which states: Any proposal to amend this Convention,

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whether emanating from a member or a Governor or a Director, shall be communicated to the Chairman of the Board who shall bring the proposal before the Board. If the proposed amendment is recommended by the Board, it shall be submitted to the Council for approval in accordance with Article 59. When an amendment has been duly approved by the Council, the Agency shall so certify by formal communication addressed to all members. Amendments shall enter into force for all members ninety days after the date of the formal communication unless the Council shall specify a different date.

8. Any amendment to the Convention must be approved by Gover- nors representing (i) not less than 60 percent of the total member- ship1 and (ii) 80 percent or more of the total voting power of MIGA.

Recommendation 9. Consequently, the Board of Directors recommends that the Council of Governors adopt the Resolution. . . .2

(This report was approved and its recommendation was adopted on July 30, 2010)

1 As of December 2009, MIGA is comprised of 175 member countries. 2 This resolution was subsequently approved. See page 172.

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June 28, 2010

2010 Regular Election of Directors

1. Resolution No. 80 adopted by the Council of Governors on August 1, 2008, provides that a Regular Election of Directors shall take place in connection with the 2010 Annual Meeting of the Council of Governors. It is proposed that this Regular Election be conducted by rapid means of communication so as to conclude a reasonable time in advance of November 1, 2010, when the term of office of the elected Directors shall commence.

2. Since the 2008 Regular Election of Directors, two Category Two countries (Kosovo and Mexico) completed all of their membership requirements.

3. The Report of the Ad Hoc Committee on the Rules for the 2008 Regular Election of MIGA Directors stated once again in paragraph 4 that: The Committee expressed the view, as reflected in the Report of the Board of Directors, that at a time when membership in MIGA became equivalent to that of the Bank (International Bank for Reconstruction and Development), the MIGA Board of Directors would become identical in size and composition with that of the Board of Executive Directors of the Bank and would be based on the same principles of preserving a broad geographic pattern of representation and of allowing all major groups of countries to be represented.

4. The Board is now composed of 24 Directors, representing roughly the same constituencies as in the Bank. MIGA has 175 member countries as opposed to 187 IBRD, 170 IDA and 182 IFC member countries.

5. This increase in membership since 2008 indicates that efforts should continue toward achieving homogeneity among the Boards of MIGA and the other institutions of the World Bank Group. More- over, the number of common issues being dealt with by the Execu- tive Directors/Directors of the World Bank Group institutions has continued to increase in number and complexity.

6. In view of these developments and noting that Article 2 of the MIGA Convention mandates the Agency to complement the activities of other members of the World Bank Group, the Board of Directors makes the following recommendations.

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Recommendations Size of the Board

7. In order for countries in Sub-Saharan Africa to be represented appropriately, in 2009, it was decided to increase the number of Directors to twenty five. For the 2010 Regular Election, the number of Directors to be elected shall be twenty-five. As in past years, there is strong feeling among the Directors that, in the unlikely event that there was lack of wide geographical and balanced representation, prompt and corrective action would be called for.

Composition of the Board

8. The Board of Directors urges the Governors to form, as closely as possible, the same constituencies in the MIGA Board of Directors as those for the Boards of other World Bank Group institutions.

9. During the informal meeting held on May 20, 1991, it was the consensus of Directors that, beginning with the 1992 Election of Direc- tors, Governors should be urged to nominate candidates based in Washington, D.C., and all Governors complied with this suggestion since the 1992 Regular Election. It is again recommended that Gov- ernors be urged to nominate the same persons as Directors of MIGA as those nominated to the Boards of the other World Bank Group institutions.

10. It is further recommended that Directors, particularly those elected by more than one Governor, appoint the same persons as Alternate Directors of MIGA as those appointed to be Alternate Executive Directors/Alternate Directors to the Boards of the other World Bank Group institutions.

Term of Office

11. Article 32(c) of the Convention and Section 10 of the MIGA By- Laws provide that the Council of Governors shall determine the term of office of the Directors. It is desirable that the term of office of MIGA’s Directors should coincide with those of the Boards of the other World Bank Group institutions to facilitate elections of persons holding positions on these boards. Thus, the Board of Directors recommends that the Council continue this practice. It is also recommended that the 2010 Regular Election of Directors be held by requesting nominations and conducting ballots by rapid means of communication so as to conclude a reasonable time in

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advance of November 1, 2010, when the term of office of the elected Directors shall commence.

Maximum and Minimum Percentages of Votes Applicable to the Election

12. For the purpose of Schedule B to the MIGA Convention, the Board of Directors recommends that for the 2010 Regular Election, the maximum and minimum percentages of the eligible votes required for election of a Director would be ten and two percent, respectively. These percentages appear appropriate for the election of the number of Directors to be elected. In the unlikely event that these percentages are inappropriate due to additional new countries having become members of the Agency and subscription to additional shares prior to the 2010 Regular Election, the Council of Governors could modify them before the start of the election.

13. The Board of Directors recommends that the date from which the 2010 Regular Election will be effective be November 1, 2010.

14. The Board of Directors also recommends that the subsequent Reg- ular Election of Directors take place in connection with the Annual Meeting of the Council of Governors in 2012.

15. Accordingly, the Board of Directors recommends that the Council of Governors adopt the Resolution . . .1 and Rules for the 2010 Reg- ular Election of Directors embodying the above recommendations.

(This report was approved and its recommendation was adopted on August 2, 2010)

1 This resolution was subsequently approved. See page 175.

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Rules for the 2010 Regular Election of Directors

Definitions 1. In these Rules, unless the context shall otherwise require, (a) “Convention” means the Convention establishing the Agency. (b) “Council” means the Council of Governors of the Agency. (c) “Chairman” means the Chairman of the Council or a Vice Chairman acting as Chairman. (d) “Governor” includes the Alternate Governor or any temporary Alternate Governor, when acting for the Governor. (e) “Secretary” means the Corporate Secretary or any acting Cor- porate Secretary of the Agency. (f) “Election” means the 2010 Regular Election of Directors. (g) “Eligible votes” means the total number of votes that can be cast in the election of the Directors to be elected pursuant to the provisions of paragraphs 6 to 11 of Schedule B to the Convention.

2. All actions taken under these Rules, including communications by the Secretary and the Chairman and nominations and balloting by the Governors, may be taken by rapid means of communication.

Timing of Election 3. The 2010 election shall be held by requesting nominations and conducting ballots so as to conclude a reasonable time in advance of November 1, 2010, when the term of office of the elected Directors shall commence.

Basic Rules—Schedule B 4. The provisions of Schedule B of the Convention shall apply to the conduct of the election. For this purpose: (a) Twenty-five Directors shall be elected. (b) Six Directors shall be elected separately, one each by the Gov- ernors of the six members having the largest number of shares. The person nominated by each of the said Governors shall be deemed to be elected upon being so nominated. (c) The Directors not elected separately pursuant to paragraph 4(b) above shall be elected in accordance with the rules in paragraphs 5 through 12 below.

Supervision of the Election 5. The Chairman shall appoint such tellers and other assistants and take such other action as he deems necessary for the conduct of the election.

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Nominations 6. (a) The Secretary shall request nominations from Governors during a suitable period specified by the Secretary. As noted in the Report of the Board of Directors to the Council of Governors dated June 28, 2010, Governors are urged to nominate the same persons as the Directors of MIGA as those elected to the Boards of the other World Bank institutions, and to form the same constituencies in the MIGA Board of Directors as those in the Boards of the other World Bank Group institutions. In addition, the Directors, particularly those elected by more than one Governor, are urged to appoint the same persons as Alternate Directors of MIGA as they have in the Boards of the other World Bank institutions. (b) Each nomination shall be made on a nomination form furnished by the Secretary, signed by the Governor or Governors making the nomination and submitted to the Secretary. (c) Any person nominated by one or more Governors entitled to vote in the election shall be eligible for election as Director. (d) A Governor may nominate only one person. (e) If a nominee withdraws from the ballot after the closing date of the nomination period, but before the closing date of the ballot, the Secretary shall inform all Governors eligible to vote of such withdrawal and invite them to submit nominations of a candidate by rapid means of communication during a suitable period specified by the Secretary. At the end of the prescribed period of time for this nomination, the Secretary shall compile a new list of candidates with all individuals who were nominated by at least one Governor in either nomination period, and circulate that list by rapid means of communication to all Governors eligible to vote with an invitation to vote through similar channels before the end of the balloting period.

Balloting 7. (a) Upon the closing of nominations, the Secretary shall send to all Governors entitled to vote in the election the list of candidates for the election, together with the invitation to Governors to vote in the first ballot, and announce the deadline for receipt of ballots. (b) One ballot form shall be furnished to each Governor entitled to vote. On any particular ballot, only ballot forms distributed for that ballot shall be counted.

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8. Each ballot shall be taken as follows: (a) Ballots shall be conducted by deposit of ballot forms, signed by Governors eligible to vote, with the Secretary. The first ballot shall take place after the close of nominations concluding no later than the first day of the 2010 Annual Meeting of the Council of Governors. (b) When a ballot shall have been completed, the Secretary shall cause the ballots to be counted and, as soon as practicable after the tellers have completed their tally of the ballots, shall announce the names of the persons elected. If a succeeding ballot is necessary, the Secretary shall announce the names of nominees to be voted on, the members whose Governors are eligible to vote and the time period for balloting. (c) If the tellers shall be of the opinion that any particular ballot is not properly executed, they shall, if possible, afford the Gover- nor concerned an opportunity to correct it before tallying the results; and such ballot, if so corrected, shall be deemed to be valid.

9. For the purposes of paragraph 6 of Schedule B to the Convention, the following percentages of total votes are decided, namely, a maximum of 10 percent of eligible votes and a minimum of 2 percent of eligible votes.

Announcement of the Result 10. After the tally of the last ballot, the Chairman shall cause to be distributed a statement setting forth the result of the election.

Effective Date of Election 11. The effective date of the election shall be November 1, 2010, and the term of office of the elected Directors shall commence on that date. Incumbent elected Directors shall serve through the day preceding such date.

General 12. Any question arising in connection with the conduct of the election shall be resolved by the tellers, subject to appeal, at the request of any Governor, to the Chairman and from him to the Council. Whenever possible, any such questions shall be put without identifying the members or Governors concerned.

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MULTILATERAL INVESTMENT GUARANTEE AGENCY

2010 REGULAR ELECTION OF DIRECTORS STATEMENT OF RESULTS OF ELECTION, OCTOBER 8, 2010

Directors elected separately by the Governors of the six member countries having the largest number of shares:

Member Whose Votes Candidate Elected Counted Toward Election Total Votes Ian H. SOLOMON United States 32,805 Nobumitsu HAYASHI Japan 9,220 Ingrid G. HOVEN Germany 9,177 Ambroise FAYOLLE France 8,806 Susanna MOOREHEAD United Kingdom 8,806 Shaolin YANG China 5,771

Directors elected by the Governors of member countries other than those listed above:

Members Whose Votes Number of Total Candidate Elected Counted Toward Election Votes Votes Abdulrahman M. ALMOFADHI 5,769 Saudi Arabia 5,769

Gino ALZETTA 11,049 Austria 1,607 Belarus 474 Belgium 3,818 Czech Republic 1,025 Hungary 1,235 Kosovo 337 Luxembourg 445 Slovak Republic 632 Slovenia 421 Turkey 1,055

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Members Whose Votes Number of Total Candidate Elected Counted Toward Election Votes Votes Anna BRANDT 7,894 Denmark 1,506 Estonia 356 Finland 1,298 Iceland 331 Latvia 412 Lithuania 428 Norway 1,473 Sweden 2,090

Felix Alberto CAMARASA 5,731 Argentina 2,451 Bolivia 461 Chile 1,096 Paraguay 382 Peru 898 Uruguay 443

Pulok CHATTERJI 7,171 Bangladesh 840 India 5,612 Sri Lanka 719

Piero CIPOLLONE 7,866 Albania 343 Greece 734 Italy 5,211 Malta 373 Portugal 914 Timor-Leste 291

Agapito Mendes DIAS 6,864 Benin 349 Burkina Faso 302 Cameroon 348 Cape Verde 291 Central African Republic 301 Chad 301 Congo, Democratic Republic of 837 Congo, Republic of 356

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Members Whose Votes Number of Total Candidate Elected Counted Toward Election Votes Votes Cote d’Ivoire 551 Djibouti 291 Equatorial Guinea 291 Gabon 410 Guinea-Bissau 291 Mali 384 Mauritania 352 Mauritius 394 Senegal 497 Togo 318

Marta GARCIA JAUREGUI 7,638 Costa Rica 447 El Salvador 363 Guatemala 381 Honduras 419 Mexico 1,433 Nicaragua 421 Spain 2,506 Venezuela, Rep. Bolivariana de 1,668

Vadim GRISHIN 5,769 Russian Federation 5,769

James HAGAN 7,542 Australia 3,260 Cambodia 405 Korea, Republic of 1,032 Micronesia, Federated States of 291 Mongolia 299 New Zealand 754 Palau 291 Papua New Guinea 337 Samoa 291 Solomon Islands 291 Vanuatu 291

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Members Whose Votes Number of Total Candidate Elected Counted Toward Election Votes Votes Merza H. HASAN 8,601 Bahrain 377 Egypt, Arab Republic of 1,050 Iraq 591 Jordan 412 Kuwait 1,880 Lebanon 491 Libya 790 Maldives 291 Oman 407 Qatar 482 Syrian Arab Republic 537 United Arab Emirates 897 Yemen, Republic of 396

Hekinus MANAO 6,452 Fiji 312 Indonesia 2,090 Lao People’s Democratic Rep. 301 Malaysia 1,261 Nepal 363 Singapore 513 Thailand 983 Vietnam 629

Renosi MOKATE 4,059 Angola 428 Nigeria 1,728 South Africa 1,903

Michel MORDASINI 6,914 Azerbaijan 356 Kazakhstan 609 Kyrgyz Republic 318 Poland 1,005 Serbia 648 Switzerland 2,884 Tajikistan 371 Turkmenistan 307 Uzbekistan 416

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Members Whose Votes Number of Total Candidate Elected Counted Toward Election Votes Votes Marie-Lucie MORIN 10,171 Antigua and Barbuda 291 Bahamas, The 417 Barbados 361 Belize 329 Canada 5,466 Dominica 291 Grenada 291 Guyana 325 Ireland 891 Jamaica 560 St. Kitts and Nevis 291 St. Lucia 329 St. Vincent and the Grenadines 329

Rogerio STUDART 7,612 Brazil 2,847 Colombia 1,011 Dominican Republic 388 Ecuador 562 Haiti 316 Panama 472 Philippines 1,094 Suriname 323 Trinidad and Tobago 599

Hassan Ahmed TAHA 7,648 Botswana 329 Burundi 315 Eritrea 291 Ethiopia 364 Gambia, The 291 Kenya 544 Lesotho 329 Liberia 325 Malawi 318 Mozambique 412 Namibia 348 Rwanda 373

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Members Whose Votes Number of Total Candidate Elected Counted Toward Election Votes Votes Seychelles 291 Sierra Leone 373 Sudan 447 Swaziland 299 Tanzania 489 Uganda 474 Zambia 559 Zimbabwe 477

Javed TALAT 7,091 Afghanistan 359 Algeria 1,385 Ghana 673 Iran, Islamic Republic of 1,900 Morocco 854 Pakistan 1,404 Tunisia 516

Rudolf TREFFERS 11,786 Armenia 321 Bosnia and Herzegovina 321 Bulgaria 884 Croatia 571 Cyprus 424 Georgia 352 Israel 1,076 Macedonia, FYR 329 Moldova 337 Montenegro 302 Netherlands 4,063 Romania 1,219 Ukraine 1,587

Total Number of Countries Voted 173 218,212

/s/ /s/ Junhong Chang (China) Wesley George Hughes (Jamaica) Teller Teller

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ACCREDITED MEMBERS OF THE DELEGATIONS AT THE 2010 ANNUAL MEETINGS

Afghanistan Antigua and Barbuda #

Governor Governor Omar Zakhilwal Whitfield Harris Jr. Alternate Governor Mohammad M. Mastoor Alternate Governor Rasona E. Davis Adviser Gretchen Biery Adviser Samiullah Ibrahimi Nadia Spencer Henry Joshua Jackson Shah Mehrabi Argentina Abdul Qadier Nur Tia Raappana Governor Albania Amado Boudou

Governor Alternate Governor Ridvan Bode Gabriela Costa*

Alternate Governor Adviser Fatos Ibrahimi Mauro Alem Arnaldo M. Bocco Adviser Gabriel Bottini Xhentil Demiraz Felix Alberto Camarasa Endrit Lami Matias Collavini Marcelo Damiani Algeria Joaquin da Rocha Eugenio Diaz Bonilla Adviser Martin Di Bella Abdallah Baali Gonzalo Etcheverry Gisela Andrea Ferrari Angola Cesar Forcieri Gerardo M. Hita Governor Mario Cesar Huck Gualberto Lima Campos Veronica Lara Anibal Lopez Alternate Governor Pablo Andres Pereira Aia-Eza Silva Jose Perez Gabilondo Sergio Poggi Adviser Hector Romano Amelia Borja Roberto Salafia Cesar Manuel Joao Lucio Simpson Celso Justino Pongolola Ignacio Torterola Sara Silva Nicolas Viggiolo

* Temporary <> Not a member of IFC # Not a member of IDA

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Armenia Alice Irvin Christian Kesberg Governor Eva-Maria Liebmann Vahram Nercissiantz Walter Mayr Sven Poellauer Alternate Governor Franz Rabitsch Tigran Davtyan Andreas Riecken Michael Spalek Adviser Michael Wancata Vartuhi Asaturian Thomas Wieser Tatul Margaryan Grigor Sargsyan Azerbaijan

Australia Governor Azer Bayramov Governor Wayne Swan Adviser Yashar Aliyev Alternate Governor Nargiz Gurbanova Roger Brake Azer Ismayil Oglu Mursagulov

Adviser Bahamas, The Kim Beazley Robert Christie Governor Adam Collins Hubert A. Ingraham Damien Dunn Anna Engwerda-Smith Alternate Governor Paul Flanagan Ehurd Cunningham Jim Hagan Zhivargo Laing* Paul Myler David Pearl Adviser Amanda Sayegh Nicole Archer Andrew Thomas Rhoda M. Jackson Christopher Tinning Khyle Quincy Parker Cornelius A. Smith Austria Nicola Virgill Simon D. Wilson Governor Reinhold Loptka Bahrain #

Alternate Governor Governor Guenther Schoenleitner Ahmed Bin Mohammed Al-Khalifa

Adviser Alternate Governor Sigrid Berka Yousif Abdulla Humood Sabine Gaber Elisabeth Gruber Adviser Gerhard Gunz Salman Al Khalifa Andrea Hagmann Jammaz Bin Abdulla Al-Suhaimi Nella Hengstler Yahya A. Alyahya Konstantin Huber Sami Mohammed Hameed

* Temporary <> Not a member of IFC # Not a member of IDA

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Zakaria Ahmed Hejres Alternate Governor Houda Ezra Nonoo Luc E.J. Coene Boyd Winton Adviser Bangladesh Gino Alzetta Marlene Beco Governor Laurent Burton Abul Maal A. Muhith Lieven De la Marche Anthony De Lannoy Alternate Governor Ronald De Swert M. Musharraf Hossain Bhuiyan Erwin De Wandel Qader Akramul* Olivier Henin Kazi M. Aminul Islam* Patrick Hermann M. A. Mannan* Jozef Kortleven Anne Leclercq Adviser David Marechal M. Mosharrof Hossain Bhuiyan Jan Matthysen Mohammad Wahid Hossain Peter Moors Sabia Muhith Bernadette Prignon Abdul Razzaque Marc Riflet Swadesh Roy Johan Rosseel Sawpan Kumar Saha Dirk Slaats Peter Van Acker Barbados Peter Van der Stoelen

Governor Belize Christopher P. Sinckler Governor Alternate Governor Dean Barrow Grantley W. Smith Alternate Governor Yvonne Sharman Hyde Adviser John Beale Adviser Carson Browne Nestor Mendez Harold E. Codrington Cherie Nisbet Joseph D. Waight Belarus # Benin Governor Andrei V. Kobyakov Governor Pascal I. Koupaki Alternate Governor Gennady Medvedev* Bhutan

Adviser Governor Ihar Klimashevich Lyonpo Wangdi Norbu Oleg Kravchenko Alternate Governor Vadim Sergeevich Misyukovets Nim Dorji Ruslan Varankov Namgyel Wangchuk* Belgium Bolivia Governor Governor Didier Reynders Elba Viviana Caro Hinojosa

* Temporary <> Not a member of IFC # Not a member of IDA

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Alternate Governor Marcio Ayrosa Moreira Luis Alberto Arce Catacora Nelson Henrique Barbosa Filho Vania Maria Borgeth Adviser Paulo Henrique Braga da Silva Varinia Cecilia Daza Foronda Heloiza Canassa Andre Carvalhal da Silva Bosnia and Herzegovina David Correa Daniel Costa Adviser Luciano Galvao Coutinho Biljana Bogicevic Otavio Damaso Radomir Bozic Joao Carlos Ferraz Hajrudin Hadzimehanovic Marcio Ferreira Jasminko Jotic Marcelo E. Fiche Donko Jovic Eduardo Fingerl Mitar Kujundzic Fabio Frederico Vojin Mijatovic Admilson Garcia Milenko Pavlovic Wagner Guerra Junior Jovo Radukic Sergio Foldes Guimaraes Lejla Simon Rogerio Karl Dalibor Tomas Artur Cardoso de Lacerda Miroslav Tomic Mauricio Lemos Antonio Lima Botswana Rogerio Lot Marcia Loureiro Governor Maria Elisa Rabello Maia Solomon M. Sekwakwa Daniel Maria Ricardo de Moraes Monteiro Alternate Governor Helio Mori Peggy Onkutlwile Serame Ricardo Moura Eduardo Nascimento Adviser Joao Pecego Keganele Malikongwa Jose Pereira de Souza Maria Mmasolo Nthebolan Fernando Pimentel Game Selepeng Jose Luis Salinas Anthony Mbiganyi Siwawa Paulo Sampaio Jose Gilberto Scandiucci Brazil Jose Pedro R. Fachada Martins da Silva Governor Ludmila V. Silva Henrique de Campos Meirelles Ramiro Alves da Silva Natalia B.S. Speer Alternate Governor Ernani Teixeira Torres Luis Gustavo Mansur Siqueira Cesar van der Laan Marcos Galvao* Paulo Nogueira Batista, Jr.* Brunei Darussalam <># Luiz A. Pereira da Silva* Rogerio Studart* Governor Alexandre A. Tombini* Pehin Dato Abdul Rahman Ibrahim Adviser Pompeu Andreucci Neto Alternate Governor Paulo Roberto Araujo Nurliati Idris*

* Temporary <> Not a member of IFC # Not a member of IDA

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Adviser Adviser Aiman Abas Sopheap Chan Nadiah Abu Bakar Touch Eng Se Ly Bulgaria # Sam An Meas Kresna Tauch Chan Alternate Governor Rithipol Tith Dimitar Kostov Cameroon Adviser Rumyana Kyuchukova Governor Tsvetan Stoilov Manchev Louis Paul Motaze Svetlana Dimitrova Panova Adviser Burkina Faso Antoine Bikoro Alo’o Pascal Dooh Bill Governor Louis Claude Nyassa Karim Traore Canada Alternate Governor Lene Sebgo Governor James Michael Flaherty Adviser Issa Benjamin Baguian Alternate Governor Pascal Batjobo Margaret Biggs Issaka Kargougou David Barnabe* Abraham Ouattara George Bentley* Bolo Sanou Antoine Brunelle Cote* Ernest Paramanga Yonli Oren Cainer* Nancy Clifford* Burundi John Davies* Orest Dykyj* Governor Nathalie Gauthier * Clotilde Nizigama Sarah Greer* Jim Haley* Alternate Governor Thomas Hockin* Leon Nimbona Diane Jacovella* Carine Khawam* Adviser Sheila MacDonald* Dismas Baransaka Cathy Melancon* Donatien Bwabo Beverley J. Oda* Beatrice Hamenyayo Jean-Francois Perrault* Jacques Ngendakumana Steve Pugliese* Nicodeme Nimenya Annette Robertson* Bonaventure Sota Paul Rochon* Jeea Saraswati* Cambodia Lawrence Schembri * Rob Stewart * Governor Vissoth Vongsey Adviser Nicole Adams Alternate Governor Robert Cayer Sothy Chan Rob Delorme

* Temporary <> Not a member of IFC # Not a member of IDA

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Emi Furuya Abbas Mahamat Tolli Christina Green Ngueto Tiraina Yambaye Robin Guy Tabinda Haider Chile Julian Karaguesian Steven Kuhn Governor Nancy Kyte Felipe Larrain Bascunan Francesca Lanata Rick Leblanc Alternate Governor Eric Madueno Rodrigo Cerda* Nicholas Phillips Segismundo Schulin-Zeuthen* Joanna Richardson Callie Stewart Adviser Francisco Bernasconi Cape Verde Dante Contreras

Governor China Cristina Duarte Governor Alternate Governor Zhu Guangyao Sandro De Brito Alternate Governor Adviser Shixin Chen Luis Miguel de Barros Alves Chang Junhong* Maia Rui Yang Shaolin* Maria Semedo Zhang Wencai* Maria de Fatima Veiga Zhou Xiaochuan* Zou Jiayi* Central African Republic Adviser Governor Jing Fu Sylvain Maliko Wenhua Li Weijie Liu Alternate Governor Dahai Sun Bendert Bokia Guanzhu Wang Wei Wang Chad Wang Yanning Guoqi Wu Governor Jianmin Yang Mahamat Ali Hassan Licheng Yao Tianwei Zhang Alternate Governor Quan Zheng Bichara Doudoua Qiangwu Zhou Ciyong Zou Adviser Barh Bachar Abdoulaye Colombia Bachar Brahim Adoum Mahamat-Amine Ben Barka Governor Zara Itno Juan Carlos Echeverry Garzon Mbaiguedem Mbairo Ngabo Mbogo Alternate Governor Djimet Ngoutine Hernando Jose Gomez Restrepo Laurent Taieb Juan Jose Echavarria Soto*

* Temporary <> Not a member of IFC # Not a member of IDA

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Carolina Renteria* Alternate Governor Cesar Vallejo* Alexandre Assemien

Adviser Adviser Maria Angelica Arbelaez Yehouan Anatole Tohougbe Restrepo Madeleine Yao Vicente Echandia Roldan Croatia Comoros Governor Governor Ivan Suker S. Soifiat Tadjiddine Alfeine Alternate Governor Alternate Governor Zdravko Maric Saandi Mouignidaho Adviser Adviser Branimir Berkovic Kadim Oussein Koraljka Deur Kolinda Grabar-Kitarovic Congo, Democratic Republic of the Darija Jurica Hrvoje Radovanic Governor Vice Skracic Mapon Matata Ponyo Martina Tenko

Alternate Governor Cyprus Ntahwakuderwa Batumike Alternate Governor Adviser Kyriacos Kakouris* Massampu Yengo Andreas Trokkos*

Congo, Republic of Czech Republic

Governor Alternate Governor Pierre Moussa Vladimir Tomsik Eva Anderova* Alternate Governor Leon Raphael Mokoko Adviser Sarka Dybczakova Costa Rica Petr Sedlacek Ivana Vlkova Governor Petr Vozobule Fernando Herrero Acosta Veronika Znamenacrova

Alternate Governor Denmark Rodrigo Bolaños Zamora Governor Adviser Soren Pind Carmen Maria Madriz Contreras Fernando Rodriguez Alternate Governor Ib Petersen Côte d’Ivoire Adviser Governor Asser Berlling-Rasmussen Paul Antoine Bohoun Bouabre Thomas Djurhuus

* Temporary <> Not a member of IFC # Not a member of IDA

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Jens Haarlov Mohamed Hammam Rikke Hughes Iman Rames Soren Jensen Ahmed Rostom MimiLytje Sameh Shoukry Niels Richter Martin Ruby El Salvador Peter Taksoe-Jensen Governor Djibouti Carlos Enrique Caceres

Alternate Governor Alternate Governor Simon Mibrathu Carlos Acevedo

Adviser Adviser Roble Olhaye Rafael Hernandez Mohamed Kayad Sikieh Mauricio Silva

Dominican Republic Equatorial Guinea

Governor Governor Vicente Bengoa Albizu Jose Ela Oyana

Alternate Governor Adviser Daniel Toribio Ambrosia Esono Angue Patricia Eyang Edjang Ngoho Adviser Eritrea Jaime Alvarez Francisco Diaz Pratt Governor Maria Felisa Gutierrez Daniel Tesfaldet Miguel Hernandez Nelson Toca Alternate Governor Edgar Victoria Berhane Ghebreslassie* Ecuador Estonia

Governor Governor Patricio Rivera Yánez Jurgen Ligi

Alternate Governor Alternate Governor Katiuska King Mantilla Tanel Ross

Adviser Adviser Evelyn Raquel Cordova Mart Kivine Lenin Muela Martin Poder Pablo Proano Ethiopia Egypt, Arab Republic of Governor Adviser Sufian Ahmed Ahmed Abuzeid Maie Adel Adviser Yasser Alnaggar Demissie Dejene Bedanie Mahmoud El Ashmawy Terefe Mezgebu Amha Mohamed Elsisi Tesfaye Sabo

* Temporary <> Not a member of IFC # Not a member of IDA

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Fiji Corinne Dromer Aymeric Jean Claude Jacques Governor Ducrocq David Kolitagane Henri Marie Etienne Dufey Christian Durand Alternate Governor Alexandre Gautier Peter Wise Herve Gonsard Jean-Yves Grosclaude Adviser Francois Pascal Haas Ray Baleikasavu Delphine Halgand Veretariki Lomalagi Emmanuelle Ivanov-Durand Winston Thompson Pierre Jaillet Frederick Jeske-Schonhoven Finland Olivier Jonglez Frederic Lambert Alternate Governor Jean-Pierre Landau Martti Hetemaki* Emilie Larese Ritva Koukku-Ronde* Marc Lautre Velipekka Nummikoski* Gabriel Leost Veronique Massenet Adviser Christian Masset Pasi Hellman Benjamin Nefussi Inkeri Hirvensalo Jean-Guillaume Poulain Lehmusvaara Jussi Dana Purcarescu Tuuli Juurikkala Julien Pierre Marie Reynaud Olli K. Kantanen Luc Rigouzzo Pauli Kariniemi Remy Rioux Markku Kauppinen Romaric Roignan Timo Laitinen Cyril Rousseau Satu-Leena Santala Bruno Silvestre Charles E. Tellier France Alice Terracol Anne Touret-Blondy Governor Pierre Vimont Christine Lagarde Jean-Patrick Yanitch Dov Zerah Alternate Governor Ramon Fernandez Gabon Delphine de Sahaguet d’Amarzit* Governor Ambroise Fayolle* Magloire Ngambia

Adviser Alternate Governor Laurence Arnould Christian Bongo Paul-Bertrand Barets Bruno Cabrillac Adviser Guillaume Chabert Alba Biffot Jean-Sebastien Conty Carlos Boungou Sonia Criseo Audrey Egaka Herve Cronel Symphorien Engone Mve Sylvain de Gelder Huguette Moussodou M. Fabien Dell Yvonne Thevenet Helene Djoufelkit

* Temporary <> Not a member of IFC # Not a member of IDA

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Gambia, The Joern Rosenberg Joachim Steffens Governor Mambury Njie Ghana

Alternate Governor Governor Mod A.K. Secka Kwabena Duffuor

Adviser Alternate Governor Serign Cham Kwabena Boadu Oku-Afari* Baboucarr H.M. Jallow Ebrima Mboob Adviser Alieu M. Ngum Francis Addo Regina Ohene-Darko Adutwum Georgia Nelly Apo Franklin Ashiadey Adviser Michael Ayesu Nika Gilauri Peter Boateng Dimitri Gvindadze Gladys Ghartey Marekh Khamaladez Edith Hazel Tamar Kovziridze Newman Kusi Batu Kutelia Millison Narh David Lezhava Matilda Osei-Agyeman Vakhtang Lezhava Alex Tetteh Akaki Lomidze George Zurabashvili Greece

Germany Alternate Governor Ioannis Drymoussis Governor Dirk Niebel Adviser Petros Christodoulou Alternate Governor Maria Galanou Joerg Asmussen Athanassios Gouglas Paul Garaycochea* Magda Hatzopoulos Michael Hofmann* Vassilis D. Kaskarelis Klaus D. Stein* Petros Kontos Ruediger von Kleist* Adamantini Lazari Stephan von Stenglin* Aristotelis Papageorgiou Juergen Zattler* George Politakis Ioannis Vrailas Adviser Georg Michael Blome Michael Brendle Grenada Thomas Feidieker Roger Fischer Governor Uwe Gehlen Timothy Antoine Claus Happe Holger Illi Alternate Governor Benjamin Knoedler Christopher Jules de Riggs Alexander Kruss Julia Lehmann Adviser Sebastian Lesch Gi Bristol

* Temporary <> Not a member of IFC # Not a member of IDA

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Guatemala Edwige Jean Louis Harold Joseph Governor Marie Perpetue Michel-Dubois Edgar Alfredo Balsells Conde Honduras Alternate Governor Edgar Baltazar Barquín Durán Governor Ana Sofia Porres* William Chong Wong Tomas Rosada* Alternate Governor Adviser Hugo Alejandro Castillo Reina Orizabal de Tello Jose-Miguel Ramirez-Pena Adviser Maria Antonieta de Bogran Guinea-Bissau Jorge Ramon Hernandez Alcerro Oscar A. Nunez-Sandoval Governor Marlon Tabora Helena Nosolini Embalo Hungary Alternate Governor Romao Lopes Varela, Jr. Governor Gyorgy Matolcsy Adviser Moussa Barry Alternate Governor Vasco da Silva Andras Karman Mory Diane Laszlo Orlos* Antiono Jose Ferreira Nobre Paulo F. Gomes Adviser Fernando Jorge Maria Correia Sandor Karacsony Alfredo Paulo Mendes Edit Papai Jeremias Pereira Gabor Szabo Abdool Vakil Bela Szombati

Guyana Iceland

Governor Alternate Governor Bharrat Jagdeo Steingrimur J. Sigfusson Hermann Orn Ingolfsson* Alternate Governor Ashni Singh Adviser Jonas Haraldsson Haiti Anna Katrin Vilhjalmsdottir

Governor India Ronald Baudin Governor Alternate Governor Pranab Mukherjee Alfred Fils Metellus Alternate Governor Adviser Ashok Chawla Urbain Pressoir Exceus Montek Singh Ahluwalia* Ketleen Florestal Kaushik Basu* Ronald Gabriel Pulok Chatterji*

* Temporary <> Not a member of IFC # Not a member of IDA

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Anup K. Pujari* Dadang Muljawan Loretta Maryann Vas* Herfan Brilianto Mursabdo Arvind Virmani* Mulia P. Nasution David Nellor Adviser Dewo Broto Joko Putranto Bhupinder Singh Bhalla Singgih Riphat Subrahmanyam Bhamidipati Partogi Samosir Om P. Bhatt Agus Santoso Neeta Bhushan Rionald Silaban Soumya Chattopadhyay Maurin Sitorus Navin Kumar Choudhary Timbul Situmorang Saranyan Krishnan Devinder Singh Malik Iran, Islamic Republic of Nilaya Mitash Govind Mohan Governor Deepak Mohanty Seyyed Shams Al-din Hosseini Maddirala Nagaraju Vishal Nair Alternate Governor Manoj Pant Behrouz Alishiri Michael Patra Partha Ray Adviser Vediappa Senthil Peyman Forouzesh Meera Shankar Farid Ghaderi Alok Sheel Ebrihim Hakimi Shyamala Shukla Ahmad Jamali Arun Singh Majid Khorrami Susobhan Sinha Mostafa Rahmani Jawed Usmani Iraq Indonesia Governor Governor Baker J. Al-Zubaidy Agus D.W. Martowardojo Adviser Alternate Governor Noufel Al Hassan Armida S. Alisjahbana Karim Muslim Almusawi Zaid Baker Al-Zubaydi Adviser Azez Jafar Hassan Adriyanto Leah Michelle McFarland Thohir Affandi Ireland Salman Al-Farisi Bradley Joseph Armstrong Governor Gontnor Ryantori Aziz Brian Lenihan Catherine Bouvier d’Yvoire Satryo Bramono Brotodiningrat Alternate Governor Adi Cahyadi Eamonn Kearns* Benyamin Carnadi Michael Joseph McGrath* Dino Patti Djalal Marianne Nolan* Andin Hadiyanto Stephen O’Sullivan* Edward Hutabarat Syahrial Loetan Adviser Hekinus Manao Alan Ahearne Vahd Nabyl Mulachela Michael Collins

* Temporary <> Not a member of IFC # Not a member of IDA

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Eoin Dorgan Ludovica Soderini Patrick Honohan Massimo Tavani Dermot Moylan Giulio Terzi Laurence Simms Basilio Antonio Toth Thomas Tichelmann Carlo Villanacci Ignazio Visco Israel Umberto Viviani Vincenzo Zezza Governor Stanley Fischer Jamaica #

Alternate Governor Governor Haim Shani Audley Shaw

Adviser Alternate Governor Shmuel Almany Wesley George Hughes Nitzan Arad Eddy Azoulay Adviser Shmuel Drory Richard Bernal Tal Grinshtein Wayne Henry Gideon Maor Shavit Gladstone Hutchinson Asaf Vitman Audrey Marks Darlene Marie Morrison Italy Japan Governor Mario Draghi Governor Yoshihiko Noda Alternate Governor Carlo Monticelli Alternate Governor Masaaki Shirakawa Adviser Mitsuhiro Furusawa* Carlo Baldocci Nobumitsu Hayashi* Manuela Bravi Mikio Kajikawa* Paolo Cappellacci Daikichi Momma* Amanda Carmignani Hiroshi Nakaso* Piero Cipollone Rintaro Tamaki* Adolfo di Carluccio Tatsuo Yamasaki* Giannandrea Falchi Lorenzo Galanti Adviser Filippo Giansante Shuhei Aoki Benedetto Giuntini Hiroto Arakawa Giorgio Gomel Hideki Asari Vittorio Grilli Hiroaki Baba Luigi Laraia Atsuyuki Fujinuma Giorgio Leccesi Ichiro Fujisaki Giandomenico Magliano Takashi Hamano Giovanni Majnoni Hajime Hayashi Marco Martella Yumeko Hyugaji Franco Passacantando Yoichiro Ikeda Edoardo Pucci Keiichiro Inaba Fabrizio Saccomanni Naoko Ishii Chiara Salabe Hideo Ishizuki

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Kotaro Iwasaki Kazakhstan Koyu Izumi Masayuki Karasawa Governor Takeshi Kato Erbol Orynbayev Osamu Kawanishi Daisaku Kihara Alternate Governor Yoshiyuki Komiya Zhannat Yertlessova Keiichi Kosaki Adviser Chiharu Kudo Askar Baltagulov Tsuneo Kurokawa Botagoz Choibekova Eiji Maeda Alexandr Davranov Shuichi Matsuta Erlan Idrissov Kensuke Miyagi Abay Iskandirov Takashi Miyahara Olzhas Issabekov Takashi Mori Ruslan Jamenkov Kazuto Muraguchi Maxat Kabashev Megumi Muto Dauren Kabiyev Chie Nakashima Kayrat Nematovich Yoichi Nakashima Kelimbetov Yoshinori Nakata Anuar Kurzhikayev Keiichiro Nakazawa Nurlan Kussainov Tomofumi Nishinaga Zhaslan Madiyev Takuya Nomura Temirlan Mukhanbetzhanov Hiroki Owaki Anvar Galimullayevich Wataru Sakata Saidenov Tomoya Sato Meruyert Saudabay Hiroshi Shigemoto Daulet Sovetovich Chikahisa Sumi Saudabayev Shinji Suzuki Serik Tasbulatov Hideharu Tachibana Madi Umbetaliyev Yoshiyuki Tahara Dastan Yeleukenov Shunsuke Takatoi Vladislav Yezhov Kazuyuki Takimi Hiroki Terada Kenya Yasusuke Tsukagoshi Satoko Ueyama Governor Satoshi Yamaguchi Uhuru Kenyatta Takahisa Yamaguchi Haruka Yamazaki Alternate Governor Akira Yokoya Joseph Kanja Kinyua Masanori Yoshida Adviser Jordan Franklin Bett Nelson Ributhi Gaichuhie Governor Michael Kamau Jafar Hassan Moses Kanagi Sylvester Kasuku Alternate Governor James Mwangi Kiiru Zeina Toukan* Jackson Kinyanjui Lucy Kiruthu Adviser Jane Musundi Hazar Ibrahim Badran Njee Muturi Fawaz Bilbeisi Absalom Elkanah Odembo

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Kiribati Jee Hea Lee Jeong Wook Lee Governor Jun Beom Lee Atanteora Beiatau Kang Ho Lee Sem Na Lee Alternate Governor Yoon Jin Lee Timi Kaiekieki Dahye Moon Mijoon Pak Korea, Republic of Hyun-Woo Park Jinsu Park Governor Junghoon Park Jeung-Hyun Yoon Jungsung Park Yoon Ae Park Alternate Governor Changyong Rhee Choongsoo Kim Sang Min Ryu Jae Chun Kim* Seunghyun Shim Je-Yoon Shin* Jie-Ae Sohn Min-Ho Son Adviser Hye Ryong Song Byung Kwun Ahn Jin Hyuk Song Seungyeob Baik Young Kyung Suh Jin Woan Beom Byeong Ha Yoo Jaai Yung Byun Yeo Kwon Yoon Hee Nam Choi Jae Hoon Choi Kosovo Jae Yong Choi Jin Gyu Choi Governor Ji Young Choi Ahmet Shala Sung-Soo Eun Youngrak Her Alternate Governor Hae-Kyong Holdaway Bedri Hamza Jin Huh Ho Hyun Jang Adviser Kwang Chul Ji Petrit Popova Hoan Uk Joo Ho Sung Jung Kuwait Yeu Jin Jung Hee Don Kang Alternate Governor Young-Kwan Kang Hesham Ibrahim Al-Waqayan* Do-Hyeong Kim Dongjoon Kim Adviser Dong Yup Kim Sami Husain Al Anbaee Hyunjung Kim Osama Alattal Jin Myung Kim Waleed Al-Bahar Jong-Hyun Kim Ayad AlGharaballi Joo Hyun Samuel Kim Mahdy Ismail Aljazzaf Minsuk Kim Eid Al-Rasheedi Pil Lae Kim Saleh Y. Al-Sagoubi Sungmin Kim Ahmed Al Tahous Yong Beom Kim Fahad Khaled Al Zamami Bumhan Lee Ahmad Mohammed Abdulrehman Deukhun Lee Bastaki Jae Young Lee Farouk A. Bastaki

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Kyrgyz Republic Adviser Sebongile Nkholise Governor Matoka C. Phori Chorobek Imashev David Mohlomi Rantekoa

Alternate Governor Liberia Emil Umetaliev Governor Adviser Augustine Kpehe Ngafuan Arslan Anarbaev Sadriddin Djienbekov Alternate Governor Amara Konneh Lao People’s Democratic Republic Adviser Governor Anthony Barclay Somdy Douangdy William Bull Natty B. Davis Alternate Governor Toga McIntosh Thipphakone Chanthavongsa Libya Adviser Soukkhivanh Douangdy Alternate Governor Phouvong Kittavong Saleh Ahmed Keshlaf Rithikone Phoummasack Adviser Latvia Tarek K. Sherlala

Alternate Governor Lithuania # Martins Bicevskis* Governor Adviser Ingrida Simonyte Inguna Dobraja Alternate Governor Lebanon Ramune Vilija Zabuliene

Governor Adviser Raya Haffar El-Hassan Dovile Jasaitiene Simonas Satunas Alternate Governor Alain A. Bifani Luxembourg

Adviser Governor Hana Anouti Luc Frieden

Lesotho Alternate Governor Georges Heinrich Governor Timothy T. Thahane Adviser Yuriko Backes Alternate Governor Ernst Wilhelm Contzen Mosito Khethisa Etienne de Lhoneux

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Christophe Frankel Alternate Governor Arsene Joseph Jacoby Latifah Abu Mansor Sarah Khabirpour Serge Kolb Adviser Miguel Marques-Gomes Mohd Suhaimi Ahmad Tajuddin Dirk Mevis Sundaran Annamalai Klaus Regling Syed Anwar Guy Schuller Saiful Bahari Baharom Jean-Louis Siweck Jamaludin Jarjis Rolf Strauch Wan Nurzila Wan Abdul Rahaman Jacques Thill Azrin Adlina Zainol Abidin

Macedonia, Former Yugoslav Republic of Maldives

Governor Governor Zoran Stavreski Ali Hashim

Alternate Governor Alternate Governor Vladimir Pesevski Hamdhy Ageel*

Adviser Mali Metodij Hadzi Vaskov Zoran Jolevski Governor Violeta Jovanoska Sanoussi Toure Suzana Peneva Ramela Popovic Trajkova Alternate Governor Jordan Trajkovski Lassine Bouare

Malawi Adviser Abdoulaye Daffe Governor Mohamed Ouzouna Maiga Ken Edward Kandodo Hawaye Toure Mamadou Traore Alternate Governor Abi Marambika Shawa Marshall Islands

Adviser Governor Wilson Toninga Banda Jack J. Ading George Chande Rodgers Tsokalao Chawani Alternate Governor Grant Kabango Jefferson Barton Jane Kambalame Winford Masanjala Mauritania Stephen Matenje Rhino Mchenga Governor Patrick Mphepo Sidi Ould Tah Nations Msowoya Jane Nankwenya Alternate Governor Levie Jeremiah Sato Mohamed Lemine Ould Ahmed Ted Sitima-Wina Adviser Malaysia Ahmed Ismail Amar Ould Chbih Cheikh El Kebir Governor Mohamed Ould Dahi Ahmad Husni Mohamad Hanadzlah Hbibi Ould Ham

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Mohamed Lamine Ould Raghani Adviser El Hassan Ould Zein Dumitru Alaiba Igor Munteanu Mauritius Maia Sandu Iurie Tabuncic Governor Ali Michael Mansoor Mongolia

Alternate Governor Governor Radhakrishna Chellapermal Bayartsogt Sangajav

Adviser Alternate Governor Dhanandjay Goboodun Boldbaatar Dagva Joyker Nayeck Adviser Mexico Ariunaa Adiya Damba Baasankhuu Governor Danzandorj Bayasgalan Ernesto Cordero Arroyo Khasbazar Bekhbat Davaasuren Damdinsuren Alternate Governor Badruun Dashdorj Ricardo Ochoa Rodriguez Bayarmaa Mijiddorj Alonso Pascual Garcia Tames* Claudia Grayeb Bayata* Montenegro Hector Rangel* Gerardo Rodriguez Regordosa* Governor Igor Luksic Adviser Juan Alonso Alternate Governor Jose A. Balbuena Milorad Katnic Rodrigo Carriedo Francisco J.J. Castro y Ortiz Adviser Erika Contreras Lidija Beratovic Jose Martin Garcia Ana Ivanovic Angel Manuel O’Dogherty Milan Kojicic Antonio Ortiz Mena Biljana Scekic Mauricio Peters Cecilia Ramos Avila Morocco

Micronesia, Federated States of Alternate Governor Faouzia Zaaboul Governor Monkid Mestassi* Rose Nakanaga Adviser Alternate Governor Bouabdellah Belhaj Senny Lynner Phillip Sabah Benchekroun Driss El Azami El Idrissi Moldova Aziz Mekouar Abdeslam Zefri Governor Veaceslav Negruta Mozambique

Alternate Governor Governor Eugeniu Cozmulici* Aiuba Cuereneia

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Alternate Governor Netherlands Ernesto Gouveia Gove Governor Adviser Jan Kees de Jager Antonio Pinto de Abreu Sheila Santana Afonso Alternate Governor Maria Sambo Rob Swartbol* Luis Sitoe Amelia Matos Sumbana Adviser Adriano Isaias Ubisse Marcel Beukeboom Gijs Gerlag Myanmar Renee Jones-Bos Macha Kemperman Governor Jan Willem le Grand Hla Tun Marije Maessen Wijnand Marchal Alternate Governor Stephan Raes Myat Myat So Helene Rekkers Mark Timmermans Adviser Rudolf Treffers U Shwe Nu Gerard van der Wulp Kyaw Tin Shein Joris Herman van Dijk Han Thu New Zealand Namibia # Governor Governor Bill English Thomas K. Alweendo Alternate Governor Alternate Governor John Whitehead Ipumbu Shiimi Adviser Adviser Jane Coombs Martin Andjaba Paul Dyer Sylvia Demas Amanda Natalie Ellis Freddie Gaoseb Matthew Hawkins Uripurua Chris Hoveka Andrew Kibblewhite Andreas Penda Ithindi Susan Lancaster Cecilia Ndishishi Rebekah Mawson Anna Nengenge Catherine Moody Michael K. Moore Nepal Sian Roguski

Governor Nicaragua Surendra Pandey Governor Alternate Governor Alberto Jose Guevara Obregon Rameshore Prasad Khanal Adviser Shankar Prasad Sharma* Francisco Campbell Adviser Nina Maria Conrado Cabrera Kali Prasad Pokhrel Manuel Coronel

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Edward Jackson Uwatt Bassey Uwatt Ramiro Montalvan Mohammed Abdu Yakasai Ovidio Reyes Lamido Yuguda

Niger Norway

Governor Alternate Governor Mamane Malam Annou Ingrid Fiskaa Atle Leikvoll* Alternate Governor Mahamadou Gado Adviser Svein Aass Adviser Sondre Bjotveit Alassane Kone Tom Eriksen Henrik Harboe Nigeria Ingrid M. Mikelsen Arve Ofstad Governor Ingrid Ofstad Olusegun O. Aganga Kjell Roland Ola Storberg Alternate Governor Danladi Kifasi Oman Ade Adefuye* M. Abiodun Alao* Governor Ahmad M. Makarfi* Darwish bin Ismail Al Balushi Haruna Mohammed* Alternate Governor Adviser Tahir Salim Abdullah Al-Amry Abiodun Aganga Fauzia Ahmed Pakistan Ajibike Akintunde Kolawole Bajomo Governor Yakubu Aminu Bello Abdul Hafeez Shaikh Chibuzo Efobi Akpan Hogan Ekpo Alternate Governor Olanrewaju Fatimilehin Sibtain Fazal Halim Aliyu Numan Ismaila Olajide Iyaniwura Adviser Oyeyemi Kale Sultan Ali Allana Babatunde F. Lawal Husain Haqqani Baba Y. Musa Nadeem Haque Ibrahim Natagwandu Hina Rabbani Khar Abraham Nwankwo Zakir R. Mahmood Nkechi Nwaogu Abdul Wajid Rana Gregory U. Okon Syed Ali Raza Patience Uwayeme Oniha Arthur Onyeachu Palau Babatunde Opadeji Patrick Osakwe Governor Ahmed Abbas Sanusi Kerai Mariur Larai Hajara Shuaibu Okorie Awa Uchendu Alternate Governor Sadiq Usman Warren Umetaro

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Adviser Philippines Hersey Kyota Laurinda Mariur Governor Cesar V. Purisima Panama Alternate Governor Governor Cayetano W. Paderanga, Jr. Alberto Vallarino Clement Florencio Abad* Rosalia de Leon* Alternate Governor Roberto Tan* Dulcidio de la Guardia Adviser Adviser Maria Antoinette Apostol Alfredo Nicolas Macia Almeida Sergio Apostol Willy Calaud Gaa Papua New Guinea Hermilando Mandanas Angelito Nayan Governor Maria Edita Tan Loi M. Bakani Poland Alternate Governor Nancy Lelang Governor Marek Belka Adviser Manu Momo Alternate Governor Zbigniew Hockuba Paraguay Adviser Governor Andrzej Kazmierczak Dionisio Borda Michal Tomasz Krupinski Katarzyna Kukier Alternate Governor Agata Lagowska Manuel Vidal Caballero Gimenez Sebastian Stolorz

Adviser Portugal Pedro R. Espinola Francisco Ogura Governor Martha Pena Kieninger Carlos Costa Pina Julio Taboada Alternate Governor Peru Eduardo Silva Lima

Governor Adviser Ismael Alberto Benavides Ferreyros Enrique Galan Silvia Luz Dias Alternate Governor Renata Mesquita Luis Miguel Castilla Rubio Nuno Mota Pinto Bernardo Ribeiro da Cunha Adviser Sofia Teixeira F. Torres Miguel Angel Ostos Rios João Vallera Patricia Seminario de Benavides Luis Adriano Alberti Varennes Betty Sotelo Bazan e Mendonca

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Qatar # Vadim Maksimov Otar Margania Governor Eugene Miagkov Yousef Hussain Kamal Vladimir Milovidov Konstantin Panov Adviser Sergey Potapov Ali bin Fahad Al Hajri Elena Sashina Essa Al Mannai Andrey Shinaev Ekaterina Sycheva Romania # Anna Valkova

Governor Rwanda Gheorghe Ialomitianu Governor Alternate Governor John Rwangombwa Cristian Popa Alternate Governor Adviser Jack Kayonga Angela Carabas Stefan Nanu Adviser Justine Mbabazi Niyibiz Russian Federation Fidelis Mironko Bonny Musefano Governor Setti Solomon Aleksei Kudrin St. Kitts and Nevis Alternate Governor Andrei Klepach* Governor Alexey G. Kvasov* Denzil Douglas Dmitry Pankin* Alexey Ulyukaev* Alternate Governor Joseph Parry Adviser Yulia Anikeeva Adviser Anatoly Ballo Izben Williams Andrei Bokarev Andrei Bugrov St. Lucia Andrey Dolgorukov Timur Eyvazov Governor Anzhelika Filippova Stephenson King Aleksei Fokin Aleksander Gorban Alternate Governor Nikolai Griko Bernard La Corbiniere Vadim Grishin Nadezda Ivanova Adviser Stanislav Katash Michael Louis Sergey Kislyak Mikhail Korobkin St. Vincent and the Grenadines <> Andrei Kostin Pavel Kuznetsov Governor Boris M. Lvin Laura Anthony-Browne

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Alternate Governor Saad Mohammed A. Al Decima Corea* Nefaee Mousa Omran Alomran Adviser Abdulaziz Al Onaizan La Celia Prince Ali Al-Sadiq Eyas Al-Sayari Samoa Fahed Alshathri Ibrahim M. Alturki Governor Hugues de Parcevaux Nickel Lee Hang Samir Fouad El-Khouri Adnan Hassan Alternate Governor Richard R. Herbert Iulai Lavea Subodh Kumar Keshava Jean Marion San Marino <># Hutham S. Olayan Rita Pasi Governor Dimitri John Sfakianakis Marco Arzilli Senegal Alternate Governor Pietro Giacomini Governor Abdoulaye Diop Adviser Daniele Bernardi Alternate Governor Daniele Bodini Mamadou Faye* Mario Giannini Paolo Rondelli Adviser Mamadou Ba São Tomé and Príncipe Babacar Cisse Fatou Danielle Diagne Governor Alhousseynou Diallo Americo d’Oliveira dos Ramos Diamane Diome Adama Diop Alternate Governor Fatimatou Zahra Diop Ana Maria da Conceicao Silveira Gnoumka Toure Diouf Ousseynou Gueye Adviser Mamadou Lamine Loum Acacio Elba Bonfim Diagna N’Diaye Joao Cristovao El Hadji Abdoulaye Ndiaye Pierre Ndiaye Saudi Arabia Aliou Ndong Thierno Seydou Niane Governor Aly Sow Ibrahim A. Al-Assaf Evelyne Tall Massar Wague Alternate Governor Muhammad S. Al-Jasser Serbia Abdulrahman Mohammed Almofadhi* Governor Bozidar Djelic Adviser Khalid S. Al Khudairy Alternate Governor Ahmed A. Al Nassar Vuk Djokovic

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Adviser Alternate Governor Biljana Chroneos-Krasavac Mario Vircik Jelena Danilovic Djerdj Matkovic Adviser Dragijana Radonjic Petrovic Peter Burian Andrej Droba Seychelles # Marek Jakoby Jana Kovacova Governor Vit Koziak Danny Faure Jan Maskal

Adviser Slovenia Bertrand Belle Elizabeth Charles Governor Christophe Edmond Franc Krizanic Sebastian Espinosa Peter Larose Alternate Governor David Nagoski Mitja Mavko

Sierra Leone Adviser Andrej Kavcic Governor Bostjan Plesec Samura Mathew Wilson Kamara Urska Storman

Alternate Governor Solomon Islands Matthew Dingie* Governor Adviser Shadrach Fanega Abu Bangura Sheku Ahmed Bangura Alternate Governor Victor Keith Cole Mark Wiggins James Comyn Santigie Charls Conteh South Africa James Sanpha Koroma Grahame J. Nathan Governor Pravin Jamnadas Gordhan Singapore Alternate Governor Governor Lesetja Kganyago Tharman Shanmugaratnam Aaron Daniel Mminele*

Alternate Governor Adviser Chester Chua Analisa Bala Kiat How Tan* Fuad Cassim Cronje Catherina Adviser Lungisa Fuzile Mohamed Fairoz Ahmad Laurence Harris Reginald Dumisa Jele Slovak Republic Sagaria Daniel Jonker Pebetse Maleka Governor Trevor Andrew Manuel Ivan Miklos Lydia Maredi

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Nkosana Mashiya Wasantha Perera Zanele Mbatha K D Ranasinghe Jonas Mcebisi Jason Milton Sudan Dondo Andrew Mogajane Governor Renosi Mokate Ali Mahmoud Mohamed Abdelrasoul Johny Moloto Shahkira Parker Alternate Governor Ebrahim Rasool Marial Yol Ater* Cleo Rose-Innes Sipo Sikakane Adviser Samantha Springfield Eltayeb Mustafa Abuganaya Vuyelwa Vumendlini-Schalk Bukhari Afandi Themba Zulu Penak Biar Ajak Enoch Awejok Spain Charles Chol Jehan Mechak Deng Governor Elmutasim Abdalla Ahmed Elfaki Elena Salgado John Eyobo Ben French Alternate Governor Elfatih Mohamed Khalid Elbadri Jose Manuel Campa Fernandez Akec K.A. Khoc Majur Mayor Adviser Fatahelrahman Ali Mohamed Miguel Aldaz Deng Deng Nhial Elena Aparici Vazquez De Parga Arkengelo Okwang Oler Isabel Garayo Orbe Guk Riek Rut Gonzalo Garcia Andres Hassan Ahamed Taha Marta Garcia Jauregui Enrique Gimenez de Cordoba Suriname <># Miguel A. Martinez Rolland Soledad Nunez Governor Cristina Perez Canto Gillmore Hoefdraad Maria Perez-Ribes Eva Valle Maestro Alternate Governor Wonnie W. Boedhoe Sri Lanka Swaziland Governor Sarath Leelananda Bandara Governor Amunugama Hlangusemphi Dlamini

Alternate Governor Alternate Governor K.G.D.D. Dheerasinghe Dumisani E. Masilela Hennayake Mudiyanselage Gunasekera* Adviser P. Nandalal Weerasinghe* Nkululeko Horace Dlamini Jaliya Wickremasuriya* Phiwayinkhosi Ginindza Tissa Wijeratne* Lindiwe Kunene Khabonina Mabuza Adviser Maxwell Mazwi Masuku Crishanthi Hapugoda Abednego Ntshangase Nimal Karunatilake

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Sweden Alternate Governor Negmatdzhon Buriev Alternate Governor Per Orneus* Adviser Joakim Stymne* Abdujabbor Shirinov Zavkidjon Zavkiev Adviser Bjorn Blomberg Tanzania Anna M. Brandt Tomas Danestad Governor Anna Ferry Mustafa Haidi Mkulo Bjorn Fritjofsson Eva Haghanipour Alternate Governor Asa Hjelt Ramadhani Mussa Khijjah Torgny E.O. Holmgren Erik C. Jonsson Adviser Pernilla Josefsson Lazo Omary Khama Ingrid Nilsson Harry Msamire Kitilya Magnus Nordstrom Cyprian Kuyava Jessica Olausson Juliana Lema Line Vikstrom Mwa Maajar Ngosha Said Magonya Switzerland John Selemani Mavura Barakael Anderson Mmari Governor Haika Sabuni Mmbaga Jean-Daniel Gerber Philip Isdor N. Mpango Sauda Msemo Alternate Governor Anna Mathias Msutze Jorg Giovanni Frieden* Msanif Haji Mussa Michel Mordasini* Paul Mwafongo Anna Arestina Joel Mwasha Adviser Peter Noni Norbert Baerlocher Patrick Wilbert Pima Marie-Charlotte Bagnoud Suleiman Ahmed Saleh Gregor Binkert Paul Sangawe Olivier Burki Bedason Antony Shallanda Vay-Luy Jetzer Giancarlo Kessler Thailand Salome Ramseier Josef Renggli Governor Philippe Sas Korn Chatikavanij Guillaume Scheurer Lukas Schneller Alternate Governor Holger Tausch Naris Chaiyasoot* Werner Weber Urs Ziswiler Adviser Susanne Zumstein Pichit Akrathit Pacharapun Aroonyingmongkol Tajikistan Nophadol Bhandhugravi Sureeporn Chaiyarungsakul Governor Wararoj Engsombun Safarali Najmudinov Todhanakasem Kittiya Sukuman Ladpli

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Chakkrit Parapuntakul Alternate Governor Tada Phutthitada Vishnu Dhanpaul Kaival Pongnontakul Poonnis Sakuntanaga Adviser Siribha Satayanon Avianne Boney Sirot set abandhu Donna Henry Chularat Suteethorn Shelton Nicholls Benjarat Tanongsakmontri Frances Seignoret Kulaya Tantitemit Suzette Ann Marie Taylor Tatiphon Teparagul Dana Wallace Jirayu Tulyanond Enid Agatha Zephyrine Vachara Tuntariyanond Ruecha Varatorn Tunisia Porametee Vimolsiri Philaslak Yukkasemwong Governor Mohamed Nouri Jouini Timor-Leste Alternate Governor Governor Kamel Ben Rejeb Emilia Pires Adviser Adviser Slaheddine Bouguerra Licinio Branco Farhad Khelif Ramon G. Oliveros Mohammed Salah Takaya Constancio Pinto Lamia Zribi Balbina Soares Turkey Togo Governor Governor Ibrahim H. Canakci Dede Ahoefa Ekoue Alternate Governor Alternate Governor Evren Dilekli Aheba Johnson Adviser Adviser Ahmet Mufit Arberk Francis Dogo Seyit Ahmet Bas Hatedheema Nonon Saa Gulsun Bor Guner Kossivi Eyelewe Nyadzawo Tahir Canatan Yusuf Celik Tonga Isa Coskun Nursel Hatun Durucakoglu Unal Governor Duygu Guven ’Otenifi Afu’alo Matoto Mehmet Sefa Pamuksuz Ozgur Pehlivan Alternate Governor Sedife Sarp ’Aisake V. Eke Mahmut Salih Unlu Erhan Usta Trinidad and Tobago Omer Yalvac

Governor Winston Dookeran

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Turkmenistan # Tamara Solyanyk Mykola Udovychenko Governor Yevhen Zelenko Dovletgeldi Sadykov United Arab Emirates Alternate Governor Gochmyrat A. Myradov Governor Obaid Humaid Al Tayer Adviser Dovran Muradnazarov Alternate Governor Mered Bairamovich Orazov Younis Haji AlKhoori Ali Hamdan Ahmed* Tuvalu <> Adviser Governor Saeed Abdulla Saeed Al Hamiz Monise Tuivaka Laafai Samy Ben-Jaafar

Alternate Governor United Kingdom Minute Alapati Taupo Governor Adviser Andrew Mitchell Afelee Pita Alternate Governor Uganda Hans Anand Beck* Georgie Drummond* Governor Robert James Elder* Syda N. Bbumba Katherine Iona Fisher* Ellen Bronte Flecker* Alternate Governor Alexander Gibbs* C. M. Kassami Robert Murray Hills* Stewart James* Adviser Amanda McLoughlin* Perezi Kamunanwire Susanna Moorehead* David Kihangire Nemat Talaat Shafik* Katekyeza L. Kiiza Fred Muhumuza Adviser George Ndyamuba Rupert Harrison Rachel Turner Ukraine United States Governor Sergiy Tigipko Governor Timothy F. Geithner Alternate Governor Anatoliy Maksyuta Alternate Governor Robert D. Hormats Adviser Andrew Baukol* Maiia Ganelina Lael Brainard* Pavlo Moiseichenko Charles V.A. Collyns* H.E. Olexander Motsyk Robert Dohner* Mariia Nikitova Marisa Lago* Andrii Pravednyk Nancy Lee* Igor Shumilo Eric Meyer*

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Scott Morris* Kenton Fox Sonja Renander* Matthew Freeman Christopher Smart* David Fulton Mark Sobel* Lawrence A. Garber Ian Solomon* William Garvelink Paige Gebhardt Adviser Fonta Gilliam Thomas Adams Daniel Glaser Steven Adamske Jeffrey Goldstein Eric Adler Christopher Grewe Laurie-Ann Agama Kristopher Haag Mimi Alemayehou William Hammink Elizabeth Ashwell Omid Harraf Sara Aviel Patricia Haslach Jeffrey Baker Julie Herr Susan Baker Jeffery Hill Bryan Balin Michael Hirson Daniel Balke Amy Holman Kimberley Barr Benjamin Hubbard Amie Batson John Hurley Elizabeth Berry Anthony Ieronimo Seth Howard Bleiweis Rajakumarz Jandhyala William Block Rachel Jarpe Jonathan Bloom Anna Jewell Virginia Brandon Matthew Kaczmarek Marie Brown Michael Kaplan Lawrence Camp Francis Michael Kelleher William Campbell John Kelley Lee Caplan Nasir Khilji Carol Carnes Mark Kissel Robert Coffman Christina Knowles David S. Cohen Terra Lawson-Remer Martha Edwards Correa Rachel Leatham Deborah M. Crane Jenni Rane Lecompte Sharon Cromer Jeanny Lee Benjamin Jared Cushman Stuart Levey Brian Darin Josephine Lewis Himamauli Das Kingsan Lien Ann Defabio Doyle Florizelle Liser Roland de Marcellus Elizabeth Littlefield Benjamin Dennis David P. Loevinger John Desrocher Rory MacFarquhar Navtej Dhillon Peter Maier David R. Dollar Matthew Malloy Dora Douglass Robert Manogue Jaroslav I. Dutkewych Leonardo Martinez Julie Egan Karen Mathiasen Thomas Engle Paulo Mattos Becky Erkul Andrew Mayock Christine Falco Deborah McCarthy Jose Fernandez Brian McCauley Dennis Flannery W. Larry McDonald William Foster Carrie McKellogg

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Tjada McKenna Tsung-Tao Yang David Meale David Young Soniya Mitra Sharon Yuan Lailee Moghtader Matthew Mohlenkamp Uruguay # Wilbur Monroe Liza Morris Governor Michael Mundaca Fernando Lorenzo William C. Murden Adrian A. Ngasi Alternate Governor Daniel Nolle Carlos Steneri* Malachy Nugent Julie Nutter Adviser Lisa Ortiz Azucena Arbeleche Francisco J. Parodi Marianela Bruno Emily-Anne Patt Adrian Fernandez Bill Pelton Borany Penh Uzbekistan Daniel Walter Peters Jennifer Peterson Governor Steven Pierce Ravshan Gulyamov William Pizer Lawrence Christopher Plantier Alternate Governor Christopher Pratt Shukhrat Vafaev Michael Pyle William Remington Adviser Bonnie Resnick Laziz Kudratov Robin Ruth Ritterhoff Sardor Shamansurovich Sagdullayev William Roebuck Michael Ruffner Vanuatu Andrew Rushing Sara Senich Governor Rajiv Shah Sela Molisa Marguerite Siemer Patrick Stuart Alternate Governor Laura Taylor-Kale Benjamin Francis Shing Darius Teter Luyen Doan Tran Adviser Kim Tuminaro Betty Zinner Toa Matthew Turner Beth Urbanas Venezuela, Republica Bolivariana de # Joanna Veltri Samantha Vinograd Governor Maureen Wafer Jose A. Rojas Lynne Weil Jason Weiss Adviser Atticus Weller Adina Bastidas April Wells Ihonell Roland Campos Jordan Winkler Pereira Deysi Stephen Winn Adriana Galindez Christopher Winship Nelson A. Lugo Kevin G. Woelflein Daniela M. Malaspina

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Juan Cristobal Prieto Zambia Angelo Rivero-Santos Armando Simosa Governor Chileshe Kapwepwe Vietnam Alternate Governor Governor Likolo Ndalamei Hong Thinh Adviser Alternate Governor Richard Kumendo Chembe Thi Thang Nguyen Mukuli Sibbuku Chikuba Akapelwa Imwiko Adviser Denny H. Kalyalya Dang Van Thanh Ben Kangwa Quoc Anh Duong Inonge Limbambala Nam Dung Huynh Chembo Mbula Anh Tuan Le Edina Mwaala Mudenda Van Loc Le Musiwa Muyatwa Huong Duc Nguyen Willie Ndembela Huong Lan Nguyen Griffin Nyirongo Le Van Nguyen Sheila Siwela Thu Ha Nguyen Trung Huu Nguyen Zimbabwe Tu Xuan Nguyen Phong Tien Pham Governor Huy Xuan Tran Willard L. Manungo

Yemen, Republic of Alternate Governor Pfungwa Kunaka Governor Abdulkarim I. Al-Arhabi Adviser Eria Hamandishe Alternate Governor Nicholas Mhute Mutahar Abdulaziz Al-Abbasi Kombo James Moyana Kudakwashe Mudereri Adviser Ibrahim Alnahari Omar Salim Bazara Nabil Shaiban

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ACCREDITED MEMBERS OF DELEGATIONS (MIGA) AT THE 2010 ANNUAL MEETINGS

Afghanistan Adviser Vartuhi Asaturian Governor Tatul Margaryan Omar Zakhilwal Grigor Sargsyan

Alternate Governor Australia Mohammad M. Mastoor Governor Albania Wayne Swan

Governor Adviser Ardian Fullani Robert Christie Adam Collins Alternate Governor Damien Dunn Fatos Ibrahimi Anna Engwerda-Smith Paul Flanagan Antigua and Barbuda Jim Hagan Paul Myler Governor David Pearl Harold E. Lovell Amanda Sayegh Andrew Thomas Adviser Christopher Tinning Nadia Spencer Henry Austria Argentina Alternate Governor Governor Guenther Schoenleitner Amado Boudou Azerbaijan Alternate Governor Mercedes Marco del Pont Governor Gabriela Costa * Azer Bayramov

Adviser Adviser Arnaldo M. Bocco Yashar Aliyev Felix Alberto Camarasa Nargiz Gurbanova Gisela Andrea Ferrari Azer Ismayil Oglu Mursagulov Cesar Forcieri Anibal Lopez Bahamas, The Pablo Andres Pereira Nicolas Viggiolo Governor Hubert A. Ingraham Armenia Alternate Governor Governor Ehurd Cunningham Vahram Nercissiantz Adviser Alternate Governor Nicole Archer Tigran Davtyan Rhoda M. Jackson

* Temporary

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Khyle Quincy Parker Adviser Cornelius A. Smith Gino Alzetta Nicola Virgill Anthony De Lannoy Dirk Slaats Bahrain Belize Governor Ahmed Bin Mohammed Al-Khalifa Governor Dean Barrow Alternate Governor Yousif Abdulla Humood Alternate Governor Yvonne Sharman Hyde Adviser Jammaz Bin Abdulla Al-Suhaimi Adviser Yahya A. Alyahya Nestor Mendez

Bangladesh Benin

Governor Governor Abul Maal A. Muhith Pascal I. Koupaki

Alternate Governor Alternate Governor Kazi M. Aminul Islam * Idriss L. Daouda

Adviser Bolivia Swadesh Roy Governor Barbados Elba Viviana Caro Hinojosa

Governor Alternate Governor Christopher P. Sinckler Luis Alberto Arce Catacora Adviser Alternate Governor Varinia Cecilia Daza Foronda Grantley W. Smith Botswana Adviser John Beale Governor Carson Browne Solomon M. Sekwakwa Harold E. Codrington Alternate Governor Belarus Peggy Onkutlwile Serame

Governor Brazil Andrei V. Kobyakov Governor Belgium Guido Mantega

Governor Alternate Governor Didier Reynders Henrique de Campos Meirelles Marcos Galvao * Alternate Governor Paulo Nogueira Batista, Jr. * Franciscus Godts Luiz A. Pereira da Silva *

* Temporary

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Rogerio Studart * Cambodia Alexandre Antonio Tombini * Governor Adviser Vissoth Vongsey Marcio Ayrosa Moreira Nelson Henrique Barbosa Filho Alternate Governor David Correa Sothy Chan Fabio Frederico Wagner Guerra Junior Cameroon Artur Cardoso de Lacerda Antonio Lima Governor Marcia Loureiro Louis Paul Motaze Ricardo de Moraes Monteiro Joao Pecego Adviser Fernando Pimentel Pascal Dooh Bill Jose Luis Salinas Paulo Sampaio Canada Jose Gilberto Scandiucci Ludmila V. Silva Governor Cesar Van Der Laan James Michael Flaherty

Bulgaria Alternate Governor Margaret Biggs Alternate Governor David Barnabe * Dimitar Kostov George Bentley * Antoine Brunelle Cote * Adviser Oren Cainer * Tsvetan Stoilov Manchev Nancy Clifford * John Davies * Burkina Faso Orest Dykyj * Nathalie Gauthier * Governor Sarah Greer * Frank Tapsoba Jim Haley * Thomas Hockin * Alternate Governor Diane Jacovella * Lene Sebgo Carine Khawam * Sheila MacDonald * Adviser Cathy Melancon * Issa Benjamin Baguian Beverley J. Oda * Pascal Batjobo Jean-Francois Perrault * Issaka Kargougou Steve Pugliese * Abraham Ouattara Annette Robertson * Bolo Sanou Paul Rochon * Ernest Paramanga Yonli Jeea Saraswati * Lawrence Schembri * Burundi Rob Stewart *

Governor Adviser Clotilde Nizigama Robert Cayer Rob Delorme Alternate Governor Christina Green Leon Nimbona Robin Guy

* Temporary

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Tabinda Haider Alternate Governor Steven Kuhn Shixin Chen Rick Leblanc Chang Junhong * Susan Love Yang Shaolin * Eric Madueno Zhang Wencai * Nicholas Phillips Zou Jiayi * Joanna Richardson Adviser Cape Verde Jing Fu Wenhua Li Governor Weijie Liu Cristina Duarte Dahai Sun Guanzhu Wang Adviser Wei Wang Luis Miguel De Barros Alves Wang Yanning Maia Rui Guoqi Wu Maria Semedo Jianmin Yang Maria De Fatima Veiga Licheng Yao Tianwei Zhang Central African Republic Quan Zheng Qiangwu Zhou Governor Ciyong Zou Sylvain Maliko Colombia Alternate Governor Bendert Bokia Governor Juan Carlos Echeverry Garzon Chad Alternate Governor Governor Hernando Jose Gomez Restrepo Mahamat Ali Hassan Juan Jose Echavarria Soto * Carolina Renteria * Alternate Governor Cesar Vallejo * Bichara Doudoua Congo, Democratic Republic of the

Adviser Governor Bachar Brahim Adoum Mapon Matata Ponyo Laurent Taieb Alternate Governor Chile Jean-Claude Masangu Mulongo

Governor Adviser Felipe Larrain Bascunan Massampu Yengo

Alternate Governor Congo, Republic of Rodrigo Cerda * Segismundo Schulin-Zeuthen * Governor Pierre Moussa Adviser Francisco Bernasconi Alternate Governor Dante Contreras Leon Raphael Mokoko

China Costa Rica

Governor Governor Zhu Guangyao Fernando Herrero Acosta

* Temporary

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Alternate Governor Dominican Republic Rodrigo Bolaños Zamora Governor Cote d’Ivoire Vicente Bengoa Albizu

Governor Alternate Governor Paul Antoine Bohoun Bouabre Daniel Toribio

Alternate Governor Adviser Koffi Charles Diby Jaime Alvarez Francisco Diaz Pratt Adviser Maria Felisa Gutierrez Madeleine Yao Miguel Hernandez Nelson Toca Croatia Edgar Victoria

Governor Ecuador Ivan Suker Governor Patricio Rivera Yánez Alternate Governor Zdravko Maric Alternate Governor Katiuska King Mantilla Adviser Darija Jurica Adviser Hrvoje Radovanic Pablo Proano

Czech Republic El Salvador

Alternate Governor Alternate Governor Vladimir Tomsik Carlos Enrique Caceres

Denmark Equatorial Guinea

Governor Governor Soren Pind Jose Ela Oyana

Alternate Governor Eritrea Ib Petersen Alternate Governor Adviser Martha Woldegiorghis Asser Berlling-Rasmussen Estonia Thomas Djurhuus Jens Haarlov Governor Soren Jensen Jurgen Ligi MimiLytje Niels Richter Alternate Governor Martin Ruby Tanel Ross

Djibouti Adviser Mart Kivine Alternate Governor Martin Poder Simon Mibrathu Ethiopia Adviser Roble Olhaye Governor Mohamed Kayad Sikieh Sufian Ahmed

* Temporary

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Alternate Governor Jean-Guillaume Poulain Abi Woldemeskel Bayou Dana Purcarescu Julien Pierre Marie Fiji Reynaud Remy Rioux Alternate Governor Romaric Roignan David Kolitagane Cyril Rousseau Bruno Silvestre Finland Charles E. Tellier Alice Terracol Alternate Governor Anne Touret-Blondy Martti Hetemaki * Pierre Vimont Ritva Koukku-Ronde * Jean-Patrick Yanitch Velipekka Nummikoski * Gabon Adviser Markku Kauppinen Governor Magloire Ngambia France Alternate Governor Governor Christian Bongo Christine Lagarde Adviser Alternate Governor Alba Biffot Ramon Fernandez Carlos Boungou Delphine de Sahaguet d’Amarzit * Symphorien Engone Mve Ambroise Fayolle * Huguette Moussodou M.

Adviser Gambia, The Bruno Cabrillac Guillaume Chabert Governor Sonia Criseo Mambury Njie Sylvain De Gelder Fabien Dell Alternate Governor Helene Djoufelkit Mod A.K. Secka Corinne Dromer Aymeric Jean Claude Jacques Georgia Ducrocq Henri Marie Etienne Dufey Adviser Christian Durand David Lezhava Alexandre Gautier Herve Gonsard Germany Francois Pascal Haas Delphine Halgand Governor Emmanuelle Ivanov-Durand Dirk Niebel Pierre Jaillet Frederick Jeske-Schonhoven Alternate Governor Olivier Jonglez Joerg Asmussen Frederic Lambert Paul Garaycochea * Jean-Pierre Landau Michael Hofmann * Marc Lautre Klaus D. Stein * Gabriel Leost Ruediger Von Kleist * Veronique Massenet Stephan von Stenglin * Benjamin Nefussi Juergen Zattler *

* Temporary

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Adviser Alternate Governor Claus Happe Charles Castel

Ghana Adviser Urbain Pressoir Exceus Governor Marie Perpetue Michel-Dubois Kwabena Duffuor Honduras Greece Governor Alternate Governor William Chong Wong Ioannis Drymoussis Alternate Governor Adviser Maria Elena Mondragon Ordonez Vassilis D. Kaskarelis Petros Kontos Iceland Ioannis Vrailas Alternate Governor Grenada Steingrimur J. Sigfusson Hermann Orn Ingolfsson * Governor Timothy Antoine Adviser Jonas Haraldsson Guatemala Anna Katrin Vilhjalmsdottir

Alternate Governor India Edgar Alfredo Balsells Conde Governor Guinea-Bissau Pranab Mukherjee

Governor Alternate Governor Helena Nosolini Embalo Ashok Chawla Montek Singh Ahluwalia * Adviser Kaushik Basu * Vasco Da Silva Pulok Chatterji * Mory Diane Anup K. Pujari * Antiono Jose Ferreira Nobre Loretta Maryann Vas * Paulo F. Gomes Arvind Virmani * Fernando Jorge Maria Correia Jeremias Pereira Adviser Abdool Vakil Bhupinder Singh Bhalla Subrahmanyam Bhamidipati Guyana Neeta Bhushan Navin Kumar Choudhary Governor Saranyan Krishnan Bharrat Jagdeo Nilaya Mitash Govind Mohan Alternate Governor Deepak Mohanty Ashni Singh Maddirala Nagaraju Manoj Pant Haiti Michael Patra Partha Ray Governor Vediappa Senthil Ronald Baudin Meera Shankar

* Temporary

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Alok Sheel Alternate Governor Shyamala Shukla Shouky Oren Arun Singh Susobhan Sinha Adviser Jawed Usmani Amnon Kraus Sigalit Siag Indonesia Italy Governor Agus D.W. Martowardojo Governor Mario Draghi Adviser Adriyanto Alternate Governor Thohir Affandi Carlo Monticelli Bradley Joseph Armstrong Gontnor Ryantori Aziz Adviser Andin Hadiyanto Piero Cipollone Hekinus Manao Giannandrea Falchi Herfan Brilianto Mursabdo Lorenzo Galanti Mulia P. Nasution Filippo Giansante David Nellor Giorgio Gomel Singgih Riphat Vittorio Grilli Rionald Silaban Giorgio Leccesi Maurin Sitorus Giandomenico Magliano Marco Martella Iran, Islamic Republic of Franco Passacantando Edoardo Pucci Governor Fabrizio Saccomanni Seyyed Shams Al-din Hosseini Massimo Tavani Giulio Terzi Alternate Governor Basilio Antonio Toth Behrouz Alishiri Ignazio Visco Umberto Viviani Iraq Jamaica Governor Baker J. Al-Zubaidy Governor Audley Shaw Ireland Alternate Governor Governor Wesley George Hughes Brian Lenihan Adviser Alternate Governor Wayne Henry Eamonn Kearns * Darlene Marie Morrison Michael Joseph McGrath * Marianne Nolan * Japan Stephen O’Sullivan * Governor Israel Yoshihiko Noda

Governor Alternate Governor Stanley Fischer Nobumitsu Hayashi * Mikio Kajikawa *

* Temporary

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Daikichi Momma * Satoko Ueyama Rintaro Tamaki * Satoshi Yamaguchi Tatsuo Yamasaki * Takahisa Yamaguchi Haruka Yamazaki Adviser Akira Yokoya Shuhei Aoki Masanori Yoshida Hiroto Arakawa Hideki Asari Jordan Hiroaki Baba Atsuyuki Fujinuma Governor Ichiro Fujisaki Jafar Hassan Takashi Hamano Hajime Hayashi Kazakhstan Yumeko Hyugaji Yoichiro Ikeda Governor Keiichiro Inaba Erbol Orynbayev Naoko Ishii Hideo Ishizuki Kenya Kotaro Iwasaki Koyu Izumi Governor Masayuki Karasawa Uhuru Kenyatta Takeshi Kato Osamu Kawanishi Alternate Governor Daisaku Kihara Joseph Kanja Kinyua Yoshiyuki Komiya Keiichi Kosaki Korea, Republic of Chiharu Kudo Tsuneo Kurokawa Governor Eiji Maeda Jeung-Hyun Yoon Shuichi Matsuta Kensuke Miyagi Alternate Governor Takashi Miyahara Choongsoo Kim Takashi Mori Kazuto Muraguchi Kosovo Megumi Muto Chie Nakashima Governor Yoichi Nakashima Ahmet Shala Yoshinori Nakata Keiichiro Nakazawa Alternate Governor Tomofumi Nishinaga Bedri Hamza Takuya Nomura Hiroki Owaki Adviser Wataru Sakata Petrit Popova Tomoya Sato Hiroshi Shigemoto Kuwait Chikahisa Sumi Shinji Suzuki Alternate Governor Hideharu Tachibana Yousef B.Y.H. Al-Roumi Yoshiyuki Tahara Shunsuke Takatoi Kyrgyz Republic Kazuyuki Takimi Hiroki Terada Governor Yasusuke Tsukagoshi Chorobek Imashev

* Temporary

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Alternate Governor Adviser Emil Umetaliev Dovile Jasaitiene Simonas Satunas Adviser Arslan Anarbaev Luxembourg Sadriddin Djienbekov Governor Lao People’s Democratic Republic Luc Frieden

Governor Alternate Governor Somdy Douangdy Georges Heinrich

Latvia Adviser Yuriko Backes Adviser Ernst Wilhelm Contzen Inguna Dobraja Etienne De Lhoneux Christophe Frankel Lebanon Arsene Joseph Jacoby Sarah Khabirpour Governor Serge Kolb Mohammad Safadi Miguel Marques-Gomes Dirk Mevis Lesotho Klaus Regling Guy Schuller Governor Jean-Louis Siweck Timothy T. Thahane Rolf Strauch Jacques Thill Alternate Governor Mosito Khethisa Macedonia, Former Yugoslav Republic of Liberia Governor Governor Zoran Stavreski Augustine Kpehe Ngafuan Alternate Governor Alternate Governor Vladimir Pesevski Amara Konneh Malawi Libya Governor Alternate Governor Ken Edward Kandodo Ali Ramadan Shnebesh Alternate Governor Adviser Abi Marambika Shawa Tarek K. Sherlala Malaysia Lithuania Governor Governor Ahmad Husni Mohamad Ingrida Simonyte Hanadzlah

Alternate Governor Alternate Governor Ramune Vilija Zabuliene Latifah Abu Mansor

* Temporary

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Adviser Mexico Sundaran Annamalai Saiful Bahari Baharom Governor Wan Nurzila Wan Abdul Rahaman Ernesto Cordero Arroyo Azrin Adlina Zainol Abidin Micronesia, Federated States of Maldives Governor Governor Rose Nakanaga Ali Hashim Alternate Governor Alternate Governor Senny Lynner Phillip Hamdhy Ageel * Moldova Mali Governor Governor Veaceslav Negruta Sanoussi Toure Adviser Alternate Governor Dumitru Alaiba Lassine Bouare Igor Munteanu Iurie Tabuncic Adviser Abdoulaye Daffe Mongolia Mohamed Ouzouna Maiga Hawaye Toure Governor Mamadou Traore Bayartsogt Sangajav

Mauritania Alternate Governor Boldbaatar Dagva Governor Sidi Ould Tah Adviser Khasbazar Bekhbat Alternate Governor Mohamed Lemine Ould Ahmed Montenegro

Adviser Governor Ahmed Ismail Amar Igor Luksic Ould Chbih Cheikh El Kebir Mohamed Ould Dahi Alternate Governor Ahmed Ould Moulaye Ahmed Milorad Katnic Mohamed Lamine Ould Raghani El Hassan Ould Zein Adviser Lidija Beratovic Mauritius Ana Ivanovic Milan Kojicic Governor Biljana Scekic Pravind Kumar Jugnauth Mozambique Alternate Governor Ali Michael Mansoor Governor Aiuba Cuereneia Adviser Dhanandjay Goboodun Alternate Governor Joyker Nayeck Ernesto Gouveia Gove

* Temporary

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Nepal Adviser Svein Aass Governor Sondre Bjotveit Surendra Pandey Tom Eriksen Henrik Harboe Alternate Governor Ingrid M. Mikelsen Rameshore Prasad Khanal Arve Ofstad Ingrid Ofstad Netherlands Kjell Roland Ola Storberg Governor Jan Kees de Jager Oman

New Zealand Governor Darwish bin Ismail Al Balushi Governor Bill English Alternate Governor Rashid Salim Al Rashdi Alternate Governor John Whitehead Pakistan

Adviser Governor Jane Coombs Salman Siddique Amanda Natalie Ellis Andrew Kibblewhite Alternate Governor Susan Lancaster Muhammad Saleem Sethi Rebekah Mawson Catherine Moody Palau Michael K. Moore Governor Nicaragua Kerai Mariur

Governor Alternate Governor Alberto Jose Guevara Obregon Warren Umetaro

Nigeria Panama

Governor Governor Olusegun O. Aganga Alberto Vallarino Clement

Alternate Governor Alternate Governor Danladi Kifasi Dulcidio De La Guardia

Adviser Paraguay Chibuzo Efobi Babatunde Opadeji Governor Okorie Awa Uchendu Dionisio Borda Uwatt Bassey Uwatt Mohammed Abdu Yakasai Alternate Governor Lamido Yuguda Manuel Vidal Caballero Gimenez

Norway Adviser Pedro R. Espinola Alternate Governor Francisco Ogura Ingrid Fiskaa Martha Pena Kieninger Atle Leikvoll * Julio Taboada * Temporary

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Peru Alternate Governor Cristian Popa Governor Ismael Alberto Benavides Ferreyros Adviser Angela Carabas Alternate Governor Luis Miguel Castilla Rubio Russian Federation

Adviser Governor Miguel Angel Ostos Rios Aleksei Kudrin Betty Sotelo Bazan Alternate Governor Philippines Andrei Klepach * Alexey G. Kvasov * Governor Dmitry Pankin * Cesar V. Purisima Alexey Ulyukaev *

Poland Adviser Yulia Anikeeva Governor Anatoly Ballo Michal Baj Andrei Bokarev Andrei Bugrov Alternate Governor Andrey Dolgorukov Andrzej Ciopinski Timur Eyvazov Anzhelika Filippova Portugal Aleksei Fokin Aleksander Gorban Governor Nikolai Griko Carlos Costa Pina Vadim Grishin Nadezda Ivanova Alternate Governor Stanislav Katash Eduardo Silva Lima Sergey Kislyak Mikhail Korobkin Adviser Andrei Kostin Enrique Galan Boris M. Lvin Silvia Luz Dias Vadim Maksimov Renata Mesquita Otar Margania Nuno Mota Pinto Eugene Miagkov Bernardo Ribeiro da Cunha Vladimir Milovidov Sofia Teixeira F. Torres Konstantin Panov Joao Vallera Sergey Potapov Luis Adriano Alberti Varennes Elena Sashina e Mendonca Andrey Shinaev Ekaterina Sycheva Qatar Anna Valkova

Governor Rwanda Yousef Hussain Kamal Governor Romania John Rwangombwa

Governor Adviser Gheorghe Ialomitianu Justine Mbabazi Niyibiz Fidelis Mironko

* Temporary

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Bonny Musefano Samir Fouad El-Khouri Setti Solomon Adnan Hassan Richard R. Herbert St. Kitts and Nevis Subodh Kumar Keshava Jean Marion Governor Hutham S. Olayan Denzil Douglas Rita Pasi Dimitri John Sfakianakis Adviser Izben Williams Senegal

St. Lucia Governor Abdoulaye Diop Governor Stephenson King Adviser Mamadou Ba Alternate Governor Babacar Cisse Bernard La Corbiniere Fatou Danielle Diagne Alhousseynou Diallo St. Vincent and the Grenadines Diamane Diome Adama Diop Alternate Governor Fatimatou Zahra Diop Laura Anthony-Browne Gnoumka Toure Diouf Ousseynou Gueye Samoa Diagna N’Diaye El Hadji Abdoulaye Ndiaye Governor Pierre Ndiaye Nickel Lee Hang Aliou Ndong Thierno Seydou Niane Alternate Governor Aly Sow Iulai Lavea Evelyne Tall Massar Wague Saudi Arabia Serbia Governor Ibrahim A. Al-Assaf Governor Bozidar Djelic Alternate Governor Muhammad S. Al-Jasser Alternate Governor Abdulrahman Mohammed Diana Dragutinovic Almofadhi * Seychelles Adviser Khalid S. Al Khudairy Adviser Ahmed A. Al Nassar Christophe Edmond Saad Mohammed A. Al Nefaee Mousa Omran Alomran Sierra Leone Abdulaziz Al Onaizan Ali Al-Sadiq Governor Eyas Al-Sayari Samura Mathew Wilson Kamara Fahed Alshathri Ibrahim M. Alturki Alternate Governor Hugues de Parcevaux Sheku S. Sesay

* Temporary

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Singapore Alternate Governor K.G.D.D. Dheerasinghe Governor Hennayake Mudiyanselage Tharman Shanmugaratnam Gunasekera * P. Nandalal Weerasinghe * Slovak Republic Jaliya Wickremasuriya * Tissa Wijeratne * Governor Ivan Miklos Adviser Crishanthi Hapugoda Adviser Nimal Karunatilake Peter Burian Wasantha Perera Andrej Droba K D Ranasinghe Marek Jakoby Jana Kovacova Sudan Vit Koziak Jan Maskal Governor Ali Mahmoud Mohamed Slovenia Abdelrasoul

Governor Suriname Franc Krizanic Governor Alternate Governor Gillmore Hoefdraad Mitja Mavko Alternate Governor Solomon Islands Wonnie W. Boedhoe

Alternate Governor Swaziland Shadrach Fanega Governor South Africa Bheki Sibonangaye Bhembe

Governor Sweden Pravin Jamnadas Gordhan Alternate Governor Alternate Governor Per Orneus * Lesetja Kganyago Joakim Stymne *

Adviser Adviser Renosi Mokate Anna M. Brandt Tomas Danestad Spain Anna Ferry Eva Haghanipour Governor Asa Hjelt Elena Salgado Torgny E.O. Holmgren Erik C. Jonsson Alternate Governor Magnus Nordstrom Jose Manuel Campa Fernandez Jessica Olausson

Sri Lanka Switzerland

Governor Governor Sarath Leelananda Bandara Jean-Daniel Gerber Amunugama

* Temporary

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Alternate Governor Adviser Michel Mordasini * Licinio Branco Ramon G. Oliveros Adviser Constancio Pinto Norbert Baerlocher Balbina Soares Marie-Charlotte Bagnoud Gregor Binkert Togo Olivier Burki Vay-Luy Jetzer Governor Giancarlo Kessler Dede Ahoefa Ekoue Salome Ramseier Josef Renggli Alternate Governor Philippe Sas Aheba Johnson Guillaume Scheurer Lukas Schneller Adviser Holger Tausch Francis Dogo Werner Weber Kossivi Eyelewe Nyadzawo Urs Ziswiler Susanne Zumstein Trinidad and Tobago

Tajikistan Governor Winston Dookeran Governor Safarali Najmudinov Adviser Donna Henry Adviser Abdujabbor Shirinov Tunisia Zavkidjon Zavkiev Governor Tanzania Mohamed Nouri Jouini

Governor Alternate Governor Mustafa Haidi Mkulo Kamel Ben Rejeb

Alternate Governor Turkey Ramadhani Mussa Khijjah Governor Adviser Ibrahim H. Canakci Cyprian Kuyava Mwa Maajar Alternate Governor Anna Mathias Msutze Evren Dilekli Paul Mwafongo Turkmenistan Thailand Governor Governor Dovletgeldi Sadykov Korn Chatikavanij Alternate Governor Timor-Leste Gochmyrat A. Myradov

Governor Adviser Emilia Pires Dovran Muradnazarov Mered Bairamovich Orazov

* Temporary

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Uganda Alternate Governor Robert D. Hormats Governor Andrew Baukol * Syda N. Bbumba Lael Brainard * Charles V.A. Collyns * Alternate Governor Robert Dohner * C. M. Kassami Marisa Lago * Nancy Lee * Ukraine Eric Meyer * Scott Morris * Governor Sonja Renander * Sergiy Tigipko Christopher Smart * Mark Sobel * Adviser Ian Solomon * Maiia Ganelina Pavlo Moiseichenko Adviser Olexander Motsyk Virginia Brandon Mariia Nikitova Marie Brown Andrii Pravednyk Jose Fernandez Igor Shumilo David Fulton Mykola Udovychenko Paige Gebhardt Yevhen Zelenko Julie Herr Francis Michael Kelleher United Arab Emirates Christopher Pratt Michael Pyle Alternate Governor Andrew Rushing Obaid Humaid Al Tayer Laura Taylor-Kale

United Kingdom Uruguay

Governor Governor Andrew Mitchell Fernando Lorenzo

Alternate Governor Alternate Governor George Osborne Carlos Steneri * Hans Anand Beck * Georgie Drummond * Adviser Robert James Elder * Azucena Arbeleche Katherine Iona Fisher * Marianela Bruno Ellen Bronte Flecker * Alexander Gibbs * Uzbekistan Robert Murray Hills * Stewart James * Alternate Governor Amanda McLoughlin * Shukhrat Vafaev Susanna Moorehead * Nemat Talaat Shafik * Adviser Laziz Kudratov Adviser Sardor Shamansurovich Rachel Turner Sagdullayev

United States Vanuatu

Governor Governor Timothy F. Geithner Sela Molisa

* Temporary

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Alternate Governor Adviser Benjamin Francis Shing Ibrahim Alnahari Omar Salim Bazara Adviser Betty Zinner Toa Zambia

Venezuela, Republica Bolivariana de Governor Chileshe Kapwepwe Governor Jose A. Rojas Alternate Governor Likolo Ndalamei Yemen, Republic of Adviser Governor Griffin Nyirongo Abdulkarim I. Al-Arhabi Zimbabwe Alternate Governor Mutahar Abdulaziz Governor Al-Abbasi Tendai Biti

* Temporary

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OBSERVERS AT THE 2010 ANNUAL MEETINGS

Abu Dhabi Fund for Development Golmame Tefera Adel Alhosani Abia Sunday Udoh

African, Caribbean and Pacific Group Andean Development Corporation of States Enrique Garcia Paulo Salesi Kautoke Carolina Espana Gabriel Felpeto African Development Bank Group Anahiz Figueroa Donald Kaberuka Andres Rugeles Souley Amadou Hugo Sarmiento Charles Boamah Leonardo G. Villar Zuzana Brixiova Danbala Danju Arab Bank for Economic Yasmine Moustafa Hus Eita Development in Africa Steve Kayizzi-Mugerwa Kamal Mahmoud Abdellatif Nono Matondo-Fundani Mohamed Elhafed Ould Beddy Kupukile Mlambo Leila Mokaddem Arab Fund for Economic and Social Nkosana Donald Moyo Development Gabriel Negatu Abdulatif Y. Al-Hamad Onike Nicol-Houra Khalil Omar Hossam Francois Nkulikiyimfura Andre W. Nzapayeke Arab Monetary Fund Ralph Olaye Jassim Abdulla Al-Mannai Aloysius Uche Ordu Yisr Barnieh Bobby Pittman Preeti Sinha Asian Development Bank Graham Murray Stegmann Haruhiko Kuroda Pierre Nicolas van Peteghem Robert Dawson Thierry de Longuemar African Export-Import Bank Philip C. Erquiaga Jean-Louis Ekra Kazuki Fukunaga Kofi Asumadu Addo C. Lawrence Greenwood, Jr. Kanayo Awani Shuichi Hosoda Denys Denya Takeo Konishi Benedict O. Oramah Bindu N. Lohani Maria Aurora Gregoria Lomotan African Trade Insurance Agency Christopher MacCormac George O. Otieno Rajat Mohan Nag Cyprien Sakubu Kazu Sakai Hellen Ooko Robert Schoellhammer Natski Tyler African Union Lakshmi Venkatachalam Amina Salum Ali Zhao Xiaoyu Louise Bailey Amos Cherehani Association of African Development Leah Kasera Finance Institutions Maxwell M. Mkwezalamba Joseph Alfred Amihere Erastus J.O. Mwencha Mupani Ilunga

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Katuala Ndekenya Yih-Feng Tsai Constantin Thamuk Carlos Watson

Bank for International Settlements Central American Monetary Council Jaime Felix Caruana Lacorte William Calvo-Villegas Hermann Greve Guenter Anton Pleines Common Fund for Commodities Bruno Tissot Javed Akhtar Philip Turner Parvindar Singh

Bank of Central African States Common Market for Eastern and Lucas Abaga Nchama Southern Africa Nazaire Fotso Ndefo Alexius Gitari Florence Limbio Michael Gondwe

Black Sea Trade and Commonwealth Secretariat Development Bank Kamalesh Sharma Andrei Kondakov Samantha Attridge Christopher Peter Best Cheryl Bruce Zacharoula Ioannis Christodoulou Ruchira Kamboj George Kottas Seth Lartey Christopher Luswata Caribbean Community Lorna McLaren Lorne McDonnough Julius Mucunguzi Fay Ingrid Housty Jonathan Ockenden Elaine Ogilvie-Ricketts Caribbean Development Bank Cyrus Rustomjee Denny Lewis-Bynoe Ransford Smith Warren Smith Janet Strachan Tessa Williams-Roberton Annie Kahenya Amita Patel Center for Latin American Monetary Studies Cooperation Council for the Arab Javier Guzman States of the Gulf Adriana Alverde Nasser Ibrahim Al-Kaud Luiz Barbosa Maria Luisa Gutierrez Council of Europe Development Bank Raphael Alomar Central African Economic and Matthias Bauer Monetary Community Jacques Mirante Pere Hassan Adoum Bakhit Haggar Thierry Poirel Benoit Ketchekmen Apolonio Ruiz Ligero Luca Schio Central African States Development Imre Tarafas Bank Michael Adande East African Development Bank Alain Ngomo Ndoutoume Lars Ekengren Mahesh K. Kotecha Central American Bank for Economic Integration Economic Community of West African Nick Rischbieth Gloe States Jose Deras Lambert N’galadjo Bamba Victor Fabiano Alfred Braimah Eduardo Gutierrez Bayaornibe Dabire Jose Felix Magana Lassane Kabore Javier Manzanares Nelson O. Magbagbeola

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Gbenga Obideyi Marco Buti Christian N. Adovelande Sarah Cartmell Ousmane Bocoum Peter Craig-McQuaide Magloire Grimaud Antonio de Lecea Bashir Mamman Ifo Servaas Deroose Stephane Kohl Geraldine Dufort Thierno Bocar Tall Kristalina I. Georgieva Eva Horelova Economic Cooperation Organization Nina Hyvarinen Nadeem Karamat Antti Karhunen Murat Ulus Petrus Kerstens Silvia Kofler European Bank for Reconstruction and Despina Manos Development Amy Medearis Thomas Mirow Nigel Nagarajan Erik Berglof Angelos Pangratis Michael Peter Delia Benedikt Signer Olivier Descamps Gerassimos Thomas Varel D. Freeman Joao Vale de Almeida Hans Peter Lankes Vlassia Vassikeri Isabelle Laurent Luc Veron Piroska M. Nagy Riccardo Puliti European Investment Bank Group Peter Reiniger Philippe Maystadt Manfred J. Schepers Barbara Bargagli-Petrucci Josue Tanaka Philippe de Fontaine Vive Nick Tesseyman Bertrand de Mazieres Axel Van Nederveen Constance Kann Anthony Robert Williams Plutarchos Sakellaris Marian Dalton Francoise Thunis Julie Green Fiona Turner Tina Hoy Patrick Walsh

European Central Bank Financial Stability Board Jean-Claude Trichet Svein Andresen Elisabeth Ardaillon-Poirier Juan Antonio Sole Lopez Pinto Lorenzo Bini Smaghi Rupert Thackray Thorne Marco Catenaro Vitor Constancio Food and Agriculture Organization of Wouter Coussens the United Nations Jose M. Gonzalez-Paramo Daniel J. Gustafson Julie McKay Frank Moss Inter-American Development Bank Georges Pineau Luis Alberto Moreno Mejia Francisco Ramon-Ballester Jose Agustin Aguerre Regina Karoline Schuller Edward Bartholomew Juergen Stark Marcelo Cabrol Michele Kirstetter Ignacio Corlazzoli Zsuzsanna Tozser Milam Olivier Delille Estanislao Echebarria European Commission Soren Elbech Olli Rehn Antoni Estevadeordal Andris Piebalgs Laura Fan Peter Bekx Luis Alberto Giorgio Moreno Bertoldi Marc Godbout Birgitte Bjornbak Felipe Gomez-Acebo

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Takashi Hanajiri Enrique Gomez-Pinzon Julie Katzman Iker Zubizarreta Steven Puig Joaquim Tres Viladomat League of Arab States Fernando Ynigo-Peralta Sameh Alfonse Mohammed Al Twaijri IADB-Inter-American Investment Hussein Hassouna Corporation Ashraf Riad Jacques Rogozinski Orlando Ferreira Caballero Nordic Development Fund Steven Reed Helge Semb

International Fund for Agricultural Nordic Investment Bank Development Johnny Akerholm Kanayo F. Nwanze Lars Eibeholm Ghassan Youssef Al-Baba Kamal Grossard-Amin Cheryl Morden Jens Hellerup Hilde Kjelsberg International Labour Organization Soren Kjaer Mortensen Juan Somavia Harro Pitkanen Nancy Donaldson Heidi Susanne Syrjanen Philippe Egger Stephen Kennett Pursey OPEC Fund for International Development Islamic Development Bank Suleiman Jasir Al-Herbish Ahmad Mohamed Ali Al Madani Helen Abu Jurji Walid Abdelwahab Said Aissi Ifzal Ali Fuad Albassam Karim Allaoui Malcolm Bricknell Ghada Attieh Ranya Nehmeh Saleem Chovvakkaran Salah Amer Jelassi Organisation for Economic Co-operation Majid Sabbagh Kermani and Development Mohamud Hussein Khalif Angel Gurria Khaled Nazer Mohamed-El-Heyba Lem Berrou Ahmad Rami Mahmoud Jonathan Coppel Areef Suleman Luiz Reis De Mello, Jr. Susan Fridy Islamic Financial Services Board Jean-Marie Le Grand Rifaat Ahmed Abdel Karim Jon Lomoy Idjarmizuan Ibrahim Pietro Carlo Padoan Ismawaty Ismail Gabriela Ramos Ronald Rulindo Holly Richards Andrew Rogerson Kuwait Fund for Arab Economic Matthias Rumpf Development Alexander Schoenfeld Thamer Hussein Jill Schuker Elodie Turchi Latin American Association of Development Financing Institutions OECD-Development Assistance Rommel Acevedo Committee Ricardo Palma-Valderrama Eckhard Deutscher Jens Sedemund Latin American Reserve Fund Ana Maria Carrasquilla Organization of the Petroleum Juan Carlos Alfaro Exporting Countries Carlos Giraldo Hasan M. Qabazard

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Pacific Islands Forum Secretariat Gail Hurley Peter Forau Sarah Jackson-Han Sanjesh Naidu Sigrid Kaag Sering Falu Njie P. L. O. Heather Simpson Jihad Al Wazir Frederick S. Tipson Aziz Abu Dagga Samir Abdullah Ali United Nations Economic Commission Mazen Saleem Jadallah for Africa Mahmoud Malhas Emmanuel Nnadozie Joseph Nesnas Hashim Shawa United Nations Economic Commission Azzam Shawwa for Latin America and the Caribbean Najib Yaser Ines Bustillo Helvia Velloso United Nations Hamidon Bin Ali United Nations Industrial Development Suzanne Bishopric Organization Hazem Fahmy H. Stephen Halloway Aleksandra Iwulska Allan Jury West African Economic and Monetary Rasoul Dastbani Mikkelsen Union Manuel F. Montes Soumaila Cisse Carlos Perrone Abdoulaye Diop Jomo Kwame Sundaram Eloge Houessou Utku Teksoz Laurent Matthieu Alexander Trepelkov El Hadji Abdou Sakho Richard Tyner Amadou Boubacar Toure Robert Peter Vos Vincent Traore

United Nations Children’s Fund West African Monetary Institute Bjorn Gillsater Waheed T. Oshikoya Katell Le Goulven Adedapo Adenekan Yulia Oleinik Isbael Ortiz World Trade Organization Pierre Poupard Pascal Lamy Joshua Set Ipa United Nations Conference on Trade and Development Egypt Planning Team 2012 Annual Michael T. Clarke Meetings Heiner Flassbeck Fahmy Abdel Rahman Yuefen Li Hisham Abdel-Hamid Azmy El Sayed El Habal United Nations Development Programme Mohammed Omar Ghoz Helen Clark Raafat Abdel Aziz Hendy Marissa Ayento Doaa Mounir Paolo Galli Nermine Ibrahim Taha

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EXECUTIVE DIRECTORS AND ALTERNATES OF IBRD/IDA AND DIRECTORS AND ALTERNATES OF IFC OCTOBER 7, 2010

Executive Directors Alternate Executive Directors

Abdulrahman Mohammed Almofadhi Abdulhamid Alkhalifa (Saudi Arabia) (Saudi Arabia)

Anna Brandt Jens Haarlov (Sweden) (Denmark)

Pulok Chatterji Kazi M. Aminul Islam (India) (Bangladesh)

Dante Contreras Felix Alberto Camarasa (Chile) (Argentina)

Sid Ahmed Dib Javed Talat (Algeria) (Pakistan)

Ambroise Fayolle Anne Touret-Blondy (France) (France)

JamesHagan Do-Hyeong Kim (Australia) (Republic of Korea)

Merza H. Hasan Ayman Alkaffas (Kuwait) (Arab Republic of Egypt)

Michael Hofmann Ruediger Von Kleist (Germany) (Germany)

Konstantin Huber Gino Alzetta (Austria) (Belgium)

Alexey G. Kvasov Eugene Miagkov (Russian Federation) (Russian Federation)

Giovanni Majnoni Nuno Mota Pinto (Italy) (Portugal)

Toga Gayewea McIntosh Hassan Ahmed Taha (Liberia) (Sudan)

Susanna Moorehead Stewart James (United Kingdom) (United Kingdom)

Michel Mordasini Michal Tomasz Krupinski (Switzerland) (Poland)

Louis Philippe Ong Seng Agapito Mendes Dias (Mauritius) (Sao Tome and Principe)

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Executive Directors Alternate Executive Directors

Carolina Renteria Rogerio Studart (Colombia) (Brazil)

Jose A. Rojas Marta Garcia Jauregui (Republica Bolivariana de Venezuela) (Spain)

Nobumitsu Hayashi Yasuo Takamura (Japan) (Japan)

Ian Solomon (VACANT) (United States) (United States)

Rudolf Treffers Tamara Solyanyk (The Netherlands) (Ukraine)

Sun Vithespongse Irfa Ampri (Thailand) (Indonesia)

Samy Watson Kelvin Dalrymple (Canada) (Barbados)

Shaolin Yang Junhong Chang (People’s Republic of China) (People’s Republic of China)

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DIRECTORS AND ALTERNATES MIGA OCTOBER 7, 2010

Directors Alternate Directors

Abdulrahman Mohammed Almofadhi Abdulhamid Alkhalifa (Saudi Arabia) (Saudi Arabia)

Anna Brandt Jens Haarlov (Sweden) (Denmark)

Pulok Chatterji Kazi M. Aminul Islam (India) (Bangladesh)

Dante Contreras Felix Alberto Camarasa (Chile) (Argentina)

Sid Ahmed Dib Javed Talat (Algeria) (Pakistan)

Ambroise Fayolle Anne Touret-Blondy (France) (France)

James Hagan Do-Hyeong Kim (Australia) (Republic of Korea)

Merza H. Hasan Ayman Alkaffas (Kuwait) (Arab Republic of Egypt)

Michael Hofmann Ruediger Von Kleist (Germany) (Germany)

Gino Alzetta Konstantin Huber (Belgium) (Austria)

Alexey G. Kvasov Eugene Miagkov (Russian Federation) (Russian Federation)

Giovanni Majnoni Nuno Mota Pinto (Italy) (Portugal)

Toga Gayewea McIntosh Hassan Ahmed Taha (Liberia) (Sudan)

Susanna Moorehead Stewart James (United Kingdom) (United Kingdom)

Michel Mordasini Michal Tomasz Krupinski (Switzerland) (Poland)

Louis Philippe Ong Seng Agapito Mendes Dias (Mauritius) (Sao Tome and Principe)

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Directors Alternate Directors

Carolina Renteria Rogerio Studart (Colombia) (Brazil)

Jose A. Rojas Marta Garcia Jauregui (Republica Bolivariana de Venezuela) (Spain)

Nobumitsu Hayashi Takaya Kishi (Japan) (Japan)

Ian Solomon (VACANT) (United States) (United States)

Rudolf Treffers Tamara Solyanyk (The Netherlands) (Ukraine)

Sun Vithespongse Irfa Ampri (Thailand) (Indonesia)

Samy Watson Kelvin Dalrymple (Canada) (Barbados)

Shaolin Yang Junhong Chang (People’s Republic of China) (People’s Republic of China)

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OFFICERS OF THE BOARD OF GOVERNORS IBRD, IFC AND IDA AND JOINT PROCEDURES COMMITTEE FOR 2010/2011

Chairman ...... The Bahamas

Vice Chairmen ...... Georgia Pakistan

Reporting Member ...... Philippines

Members ...... Australia The Bahamas Bangladesh Belgium Burkina Faso Egypt France The Gambia Georgia Germany Guatemala Italy Japan Kenya Malaysia Norway Pakistan Paraguay Philippines Saudi Arabia Trinidad and Tobago United Kingdom United States

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OFFICERS OF THE MIGA COUNCIL OF GOVERNORS AND MIGA PROCEDURES COMMITTEE FOR 2010/2011

Chairman ...... The Bahamas

Vice Chairmen ...... Georgia Pakistan

Reporting Member ...... Philippines

279 7912_CH11_p274-280.pdf 3/18/11 10:22 AM Page 280 THE WORLD BANK GROUP 2010 A THE WORLD BANK GROUP Headquarters 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. nnual Meetings of the Boards of Governors Telephone: (202) 473-1000 Facsimile: (202) 477-6391 Website: www.worldbank.org

THE WORLD BANK GROUP

SUMMARY PROCEEDINGS 2010 Annual Meetings of the

Boards of Governors 2010 Summary Proceedings

Washington D.C. Ocotober 8–10, 2010