WASHINGTON (MNI) – The following is the text of the IMF/World Bank
Development Committee Communique, issued Sunday:

1. The Development Committee met today, April 25, 2010, in
Washington DC.

2. As it emerges from the worst crisis in decades, the world
economy faces an uncertain and uneven recovery. The crisis interrupted
progress in reducing poverty and the impact will be long-lasting. With
only five years to meet the Millennium Development Goals, we must
intensify efforts to reach the poor wherever they are – in Middle Income
Countries, Low Income Countries, and especially in Sub-Saharan Africa.
We welcomed the World Bank Group (WBG)’s response to the crisis through
new and creative approaches to help its clients, including IFC’s
innovative response, as well as the increase since the start of the
crisis in the WBG’s support to over $100 billion and the IMF’s support
to almost $175 billion.

3. The crisis response underscored the importance of international
cooperation and effective multilateral institutions. With global
mandates and memberships, the WBG and the IMF must play key roles in a
modernized multilateralism.

4. We noted the ongoing discussion at the IMF on its current
mandate and the review of its role in surveillance, lending, and the
stability of the international monetary system.

5. We recognize the historic nature of the crisis and support the
World Bank Group embarking on fundamental reforms and developing a
post-crisis directions strategy. The WBG will be better equipped to
address the development challenges of the 21st century and its
overarching objective of overcoming poverty. These ongoing reforms will
strengthen the efficiency, effectiveness and accountability of the World
Bank Group. We are increasing its legitimacy through voice reform. We
are rebuilding its financial capacity. This transformative agenda is set
out in the Synthesis Paper-New World, New World Bank Group. Effective
implementation will be critical and we look forward to reviewing
progress at our future meetings. We look forward to Board proposals for
strengthening corporate governance and accountability at the WBG at the
2010 Annual Meetings.

6. In line with our Istanbul commitments, we endorsed voice reform
to increase the voting power of developing and transition countries
(DTC) in IBRD by 3.13%, bringing it to 47.19%. This represents a total
shift of 4.59 % to DTCs since 2008 (http://www.worldbank.org/voiceibrd).
This 2010 realignment includes a selective capital increase of $27.8
billion with paid-in capital of $1.6 billion. The approach used for the
2010 shareholding realignment and its elements are the basis for the
current selective capital increase only. For the next shareholding
review in 2015, we committed to establish a work program and a roadmap
to arrive at a benchmark for a dynamic formula reflecting the principles
we agreed in Istanbul, moving over time towards equitable voting power
and protecting the voting power of the smallest poor countries. We
reiterate the importance of an open, merit-based and transparent process
for the selection of the President of the World Bank Group. We will also
promote staff diversity to reflect better the global nature of the
WBG.

7. As a first step in IFC voice reform, we endorsed an increase in
basic votes and a selective capital increase of $200 million,
representing a total shift of 6.07%, to bring DTC voting power to 39.48%
and move towards a broad and flexible alignment with IBRD shareholding
(http://www.worldbank.org/voiceifc).

8. The WBG must remain financially strong. We endorsed a general
capital increase for IBRD of $58.4 billion of which 6%, or $3.5 billion,
would be paid in capital, as set out in the paper Review of IBRD and IFC
Financial Capacities. We further endorsed related matters contained in
that paper as well as in Synthesis Paper-New World, New World Bank
Group, including a reform of loan maturity terms to be discussed at the
integrated financial review in June 2010. We recognized the importance
of the inclusive nature of the GCI and our ongoing commitment to IDA by
enhancing the value of IDA transfers, in line with IBRD’s financial
capacity. We reiterated our support for a successful IDA-16
replenishment through fairer and wider burden-sharing. We also
reconfirmed our commitment to ensuring that IFC has the resources
necessary for its continued growth. We endorsed the package to enhance
IFC’s financial capacity, including consideration of a long-term hybrid
instrument to shareholders, subject to the Board review of terms and
conditions, and earnings retention.

9. We urged the Boards and WBG management to expedite the
necessary procedures so the appropriate resolutions to implement the
voice reform and capital packages are submitted to the IBRD and IFC
Boards of Governors by end-June 2010.

10. We thank Kiyoshi Kodera for his services over the past four
years as Secretary to the Development Committee. The Committee’s next
meeting is scheduled for October 10, 2010 in Washington, DC.

** Market News International Washington Bureau: 202-371-2121 **

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