World Bank: $5.1 billion capital increase update

A recent increase in operating capital will make China the third largest shareholder of the World Bank, after United States and Japan and ahead of other major economies such as Germany. World Bank members agreed on a $5.1 billion increase in operating capital, the first major step forward since 1988.

This increase will allow World Bank to maintain it’s involvement in the global crisis, it’s programs and investments that grew exponentially since august 2008, to a peak level of $105 billion in financial commitments.

Although some developing countryes sought a bigger capital increase, the wealthier nations rezisted. Even with this amount of change in shareholders, the developing countries will have a greater say in their anti-poverty efforts. This move was considered by the bank’s president, Robert B. Zoellick as a vote of confidence given by the 186 members who also voted to support a reform package that will improve risk management and call for a greater openness to the public.