G-20 leaders resolved to speed reform of International Financial Institutions
Leaders of the G20 countries reaffirmed their resolve to accelerate the reform of the International Financial Institutions (IFIs) in an effort to strengthen their legitimacy, credibility and effectiveness to make them even stronger partners, Xinhua reported.
They made the remarks in a final declaration issued on Sunday afternoon when the two-day G-20 summit concluded in Toronto, Canada's largest city.
The G-20 leaders said that substantial work are still needed for the IMF reform by the Seoul Summit set in November in line with their commitments made in Pittsburgh in 2009.
On World Bank (WB) reform, the Toronto Summit endorsed the important voice reforms agreed by WB shareholders, which will increase the voting power of developing and transition countries by 4.59 percent since 2008.
The leaders stressed the need for open, transparent and merit- based selection processes for the heads and senior leadership of all the IFIs in the context of broader reform.
"Our goal is to build a more stable and resilient international monetary system," they added.
They underscored the value of IFIs and the Multilateral Development Banks (MDBs) as platforms for global cooperation in mobilizing critical financing, including 750 billion U.S. dollars by the IMF and 235 billion U.S. dollars by the MDBs in response to the financial and economic crisis.
The G-20 leaders said they have fulfilled their Pittsburgh Summit commitment on the MDBs, which includes 350 billion US dollars in capital increases for the MDBs, allowing them to nearly double their lending.
"This new capital is joined to ongoing and important reforms to make these institutions more transparent, accountable and effective, and to strengthen their focus on lifting the lives of the poor, underwriting growth, and addressing climate change and food security," they said.
They claimed that their commitment to ensure an ambitious replenishment for the concessional lending facilities of the MDBs, especially the International Development Association and the African Development Fund, has also be fulfilled.
On the issue of small and medium enterprises (SME), the Summit launched a plan, the SME Finance Challenge, and is committed to mobilizing funding for implementation of winning proposals, including through the strong support of the MDBs.
"We have developed a set of principles for innovative financial inclusion," they added.
In regard to Haiti reconstruction from the January devastating earthquake, the G-20 leaders expressed their support to the people of Haiti by providing much-needed reconstruction assistance, including the full cancellation of all of Haiti's IFI debt.
On the agriculture and food issues, the G-20 leaders said that they are committed to exploring innovative, results-based mechanisms to harness the private sector for agricultural innovation.
"We welcome the launch of the Global Agriculture and Food Security Program in fulfillment of our Pittsburgh commitment on food security, an important step to further implement the Global Partnership for Agriculture and Food Security, and invite further contributions," they concluded.