Criticizing Western Domination Of World Bank

South African Finance Minister Criticizes Western Domination Of World Bank

By Clare Nullis
June 6, 2007 - 11:15 a.m.
CanadianBusiness

CAPE TOWN, South Africa (AP) - Finance Minister Trevor Manuel said it was time rich nations accept that they no longer dominat the global economy and that international institutions like the World Bank should reflect the new reality.

In an address to editors and publishers at the World Association of Newspapers annual meeting Wednesday, Manuel said that the World Bank and the International Monetary Fund suffered from a "huge deficit of democracy" that is unfair to the developing countries they purport to help.

An American traditionally heads the World Bank, while the IMF post goes to a European.

President Bush chose Robert Zoellick last week to replace Paul Wolfowitz, who stands down June 30...

...Manuel said that Zoellick was competent and had a credible track record, but he criticized the United States for regarding the World Bank presidency as its "birthright."

Zoellick still has to be approved by the World Bank's 24-member board.

Manuel said that in an open contest Zoellick would be one of the strongest candidates, given his track record in the U.S. administration and the respect he won as U.S. trade representative.

But he said that Washington "lacked courage," as it shied away from an open selection process and knew it could use its power of veto to ensure that other countries towed the line.

He said that Bush didn't even have to seek U.S. Senate approval beforehand.

"He can nominate and use the veto power and muscle the candidate through as president of the World Bank. There has to be something wrong because that veto lends itself to all kinds of abuses that cannot be in the best interests of the world bank," he said.

"We need change that so we don't compromise the candidate or the institution."

South Africa is one of the most influential voices among developing countries and Manuel enjoys particular respect as he has been finance minister for the past 11 years.

Manuel also queried whether the Group of Eight industrialized nations could legitimately claim to be the "only voice on global economic developments."