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Report on Operations Under the Bretton Woods and Related Aggrements Act

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Annex 1

Acronyms Used in This Report

AFRITAC African Regional Technical Assistance Centre
AMC Asset Management Company
BWIs Bretton Woods Institutions
CAO Compliance Advisor Ombudsman
CARTAC Caribbean Regional Technical Assistance Centre
CIDA Canadian International Development Agency
CIF Climate Investment Fund
CRO Chief Risk Officer
DeMPA Debt Management Performance Assessment
DMF Debt Management Facility
DTC developing and transition country
ED Executive Director
EMDCs emerging market and developing countries
ESAF Enhanced Structural Adjustment Facility
ESF Exogenous Shocks Facility
FCL Flexible Credit Line
FDI foreign direct investment
FSAP Financial Sector Assessment Program
FSB Financial Stability Board
FY fiscal year
G-7 Group of Seven
G-8 Group of Eight
G-20 Group of Twenty
GAFSP Global Agriculture and Food Security Program
GCI general capital increase
GDP gross domestic product
GFSR Global Financial Stability Report
GRA General Resources Account
GTLP Global Trade Liquidity Program
HIPC heavily indebted poor country
IAD Internal Auditing Department
IBRD International Bank for Reconstruction and Development
ICSID International Centre for Settlement of Investment Disputes
IDA International Development Association
IDA15 15th replenishment of IDA
IDA16 16th replenishment of IDA
IEG Independent Evaluation Group
IEO Independent Evaluation Office
IFC International Finance Corporation
IFI international financial institution
IMF International Monetary Fund
IMFC International Monetary and Financial Committee
INT Department of Institutional Integrity
LIC low-income country
MAP Mutual Assessment Process
MDG Millennium Development Goal
MDRI Multilateral Debt Relief Initiative
MIGA Multilateral Investment Guarantee Agency
MTDS Medium-Term Debt Management Strategy
NAB New Arrangements to Borrow
NAMA National Asset Management Agency
ODAAA Official Development Assistance Accountability Act
OECD Organisation for Economic Co-operation and Development
OECS Organization of Eastern Caribbean States
PCL Precautionary Credit Line
PPCR Pilot Program on Climate Resilience
PRGF Poverty Reduction and Growth Facility
PRGT Poverty Reduction and Growth Trust
PSI Policy Support Instrument
PTA preferential trade agreement
REO Regional Economic Outlook
RTAC Regional Technical Assistance Centre
SAF Structural Adjustment Facility
SCF Strategic Climate Fund
SDR Special Drawing Right
SEMCAR Support for Economic Management in the Caribbean
SMEs small and medium-sized enterprises
SSP Statement of Surveillance Priorities
TAC Technical Assistance Centre
TF Transfer Fund
TIEA Tax Information Exchange Agreement
UNCTAD United Nations Conference on Trade and Development
WBG World Bank Group
WEO World Economic Outlook

Annex 2

Summary Assessment of Progress on Canada's
Priorities at the Bretton Woods Institutions in 2010

Colour code:  Good progress         Some progress         Little progress       
1) Governance and Accountability
Time Frame Action Item Progress
Priority 1.1 Voice Reforms: Enhance the legitimacy of the Bretton Woods Institutions (BWIs) through meaningful voice reforms.
Short-Term 2010
Work towards a final agreement on World Bank voice reforms in 2010 for both the smallest and poorest countries, and building in incentives for donors, including emerging market and developing country donors, to support IDA. Good
Short-Term 2010
Support negotiations for a new, lasting quota agreement to boost IMF legitimacy by increasing the voice of under-represented emerging market and developing country members. Good
Priority 1.2 Institutional Reforms: Building on our previous reform efforts at the Bretton Woods Institutions, Canada will continue to push the IMF and World Bank to increase their legitimacy, credibility and accountability.
Promote IMF corporate governance changes to strengthen Ministerial oversight, increase the Executive Board's strategic role and introduce a more robust independence-accountability framework for senior management who are hired on merit. Little
Press for a World Bank Group corporate strategy that incorporates benchmarks to track progress and review performance on its reform agenda. Push for a focal point under the President responsible for bringing together all operational and budgetary aspects of the reform agenda, and ensuring a sound and sustainable business model. Some
2) Institutional Effectiveness
Time Frame Action Item Progress
Priority 2.1 IMF Mandate: Canada will encourage the IMF to remain focused on its core mandate of stability promotion.
Engage in the IMF mandate review and push for the Fund to focus on bolstering its core surveillance and crisis lending/conditionality functions, and not expand its operations into non-core areas. Good
Priority 2.2 IMF Surveillance and Crisis Prevention: Support reforms to make surveillance more effective.
Encourage IMF members to increase surveillance engagement and transparency, and the Fund to improve its ability to identify, communicate and spur member responses to stability threats. Some
Priority 2.3 Resources and Lending Facilities: Ensure that the IMF and World Bank Group have adequate resources and appropriate instruments to fulfill their lending mandates.
As part of quota negotiations, push for the increase in quota resources to reflect the role of the Fund. Good
Complete the review of the Bank's financial capacity, including capital needs, and seek early conclusion of the 16th replenishment of IDA (IDA16). Good
Push for Fund programs to be based on sound economic principles and workable solutions, with targeted conditionality. Good
Priority 2.4 Aid Effectiveness: Get the most development impact from World Bank resources.
Encourage the World Bank Group to increase the use of impact evaluations, as appropriate, to affect policy decisions. Good
Push the World Bank Group to strengthen its capacity to manage and track development results. Good
Press the World Bank to improve health system investments, which will be foundational for improvements in maternal and child health. Some
Priority 2.5 Innovation for Private Sector Participation in Development: Continue to support new ways to promote private sector participation.
Push for greater and more effective use of innovative tools to tackle global public goods (e.g. Advance Market Commitments and catastrophic risk insurance facilities). Good
3) Sustainable Poverty Reduction and Growth
Time Frame Action Item Progress
Priority 3.1 Debt Sustainability: Avoid another lend-and-forgive cycle.
Ensure that Haiti's outstanding debt to international financial institutions is completely forgiven and that reconstruction assistance is provided in the form of grants or highly concessional loans so as to not compromise Haiti's long-run development efforts. Good
Push for agreement from all creditors to abide by lending limit guidelines established by the IMF/World Bank's Debt Sustainability Framework when providing resources to low-income countries. Little
Use Canada's membership in the newly established Debt Management Facility steering committee to ensure it provides targeted, cost-effective technical assistance to low-income countries. Good
Priority 3.2 Fragile and Conflict-Affected Countries: Better tools for assisting fragile and conflict-affected countries.
Use IDA16 negotiations to push for an increase in the length and volume of exceptional IDA allocations for fragile and conflict-affected countries, such as Haiti, while pressing for the implementation of reform to ensure that the World Bank offices in these countries have the right human resources and delegated authority. Good
Priority 3.3 Gender: A real mainstreaming of gender considerations across operations.
Push the World Bank to include a monitoring framework, with clear and measurable targets for progress on gender mainstreaming, as part of its Gender Action Plan's transition strategy. Some
Priority 3.4 Environment: Linking development and environment in a manner that is consistent with BWI core mandates.
Ensure climate change considerations are integrated into the World Bank's activities, notably those related to agriculture and new project decision making. Ensure appropriate linkages to climate change in the preparation of the World Bank's Environment and Energy Strategies throughout 2010, and encourage the use of enhanced environmental indicators as part of IDA16. Good
Ensure that the Climate Investment Funds are achieving results, incorporating learning over time, and taking necessary steps to harmonize activities with any new climate funds that may emerge from international climate change negotiations. Some

Annex 3

Canadian Statements at the International Monetary and Financial Committee of the Board of Governors of the IMF, 2010

The Honourable Jim Flaherty, Minister of Finance for Canada
on behalf of Antigua and Barbuda, Bahamas, Barbados, Belize, Canada, Dominica, Grenada, Ireland, Jamaica, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines

Washington, DC
April 24, 2010


Thanks to the extraordinary and highly coordinated policy actions of governments and multilateral financial institutions over the past 20 months, the global economy has stabilized and modest growth has emerged. This recovery remains fragile, however, particularly in advanced economies, and many shared global challenges remain. To address these challenges, we must build upon the global macroeconomic cooperation that allowed us to bring about a timely and appropriate response to the crisis.

The International Monetary Fund (IMF) is central to these efforts as the “bricks and mortar” embodiment of international economic and financial cooperation. But, as its members have acknowledged, the Fund is in need of reforms to ensure that it can deal effectively with the financial crises of the 21st century, which originate in the capital account, not just the balance of payments problems for which it was designed in the mid-20th century. The case for reform is clear: the environment in which the Fund operates has fundamentally changed as a result of the global financial integration of the past three decades. And yet, the underlying objective of the Fund remains valid. The architects of the Bretton Woods system endowed the Fund with the role of assisting its members strike the right balance between financing and adjustment. The challenge is to remain true to this mandate.

This would not be an easy assignment at any time; it is all the more important in the wake of the biggest financial and economic crisis since the Great Depression. Our efforts to reform the Fund must be informed by the lessons that the crisis made clear. One central message is that the moral hazard arising from the financial sector bailouts is going to be a legacy problem for governments and regulators. While we commend the successful confidence-building measures that the IMF took during the crisis, we need to ensure that future proposals regarding the Fund's role, size and lending toolkit do not send the wrong messages about risk-taking and prudence.

Canadian Developments

Reflecting Canada's financial, economic and fiscal strengths, together with extraordinary policy actions, Canada has weathered the global recession better than most other major industrialized countries. Real gross domestic product (GDP) increased by 5.0 per cent in the last quarter of 2009, led by a significant and continued rebound in final domestic demand, which has been the strongest of all Group of Seven (G7) countries. The IMF expects Canada to be one of the fastest growing economies among G7 countries in 2010 and 2011. However, the global recovery remains fragile. For this reason, the Government will complete the implementation of Canada's Economic Action Plan—a two-year C$62‑billion plan (equivalent to about 2 per cent of GDP on average per year) to support economic growth and create and maintain jobs.

The Government will bring Canada's finances back to balance over the medium term by ending the temporary measures as scheduled in early 2011, putting in place targeted measures to restrain direct program spending growth, and undertaking a comprehensive review of government administrative functions and overhead costs. These measures will allow the Government to bring the federal deficit to 0.1 per cent of GDP in 2014–15.

Irish Developments

After two exceptionally difficult years, there is mounting evidence that conditions in the Irish economy are stabilizing. Hard data for the opening months of the year have been reasonably encouraging, while more timely soft data paint a similar picture. A resumption of modest expansion during the second half of the year is now widely anticipated, although negative carry-over and the continued correction in the residential construction sector mean that full-year activity is projected to decline by 1¼ per cent. Falling output over the past few years has been accompanied by a substantial deterioration in the labour market, although signs are that unemployment is now close to peak.

The necessary fiscal consolidation is continuing. Following measures amounting to 5 per cent of GDP for 2009, additional measures amounting to 2½ per cent of GDP have been implemented for this year. For this year, the adjustments are almost exclusively on the expenditure side, and have involved public sector pay cuts, reductions in social welfare rates and various program cuts.

Significant action has also been taken to restore the health of the banking sector. Banks' balance sheets are being strengthened through the sale of impaired assets on significantly discounted terms to the National Asset Management Agency (NAMA) accompanied by a recapitalization to take account of the losses incurred on the transferred loans, as well as likely further losses on banks' other loans. This is being done with the aim of creating a buffer in Irish banks' capital positions which will place them in a better position to access funding and assist in the recovery of the economy. This process has made clear, that while the costs of restoring the banking system will be large, there is now certainty about the overall size of these costs.

Caribbean Developments

My Caribbean counterparts are grateful for the support that the IMF and other international financial institutions (IFIs) have provided and continue to provide to Haiti.

The Caribbean economies are still facing significant challenges in the aftermath of the global economic crisis, with a very lagged pace of recovery projected. Therefore, fiscal and external sector pressures remain highly elevated. Weak conditions are expected to persist through most of 2010, with a mild strengthening towards the end of the year and into 2011. This is dependent, of course, upon a strengthening in tourism receipts and remittance inflows—mainly linked to the improvement in household confidence in the United States. It is also conditioned upon better prices for commodities exports.

While there has been an urgent short-term need to achieve macroeconomic stabilization, medium-term priorities for the region centre around transitioning to more sustainable paths for fiscal policies; achieving substantial and lasting debt reductions that create more space for spending on social sector programs; and fostering a more supportive environment for robust, private sector-led growth. Efforts to strengthen financial sector regulatory frameworks are ongoing, with heightened emphasis on regional cooperation to address systemic issues. A number of Caribbean countries have either engaged or are in the process of engaging IMF-supported programs to advance their reform agendas. More generally, the IFIs and external donors continue to provide valuable technical assistance to strengthen policy frameworks and institutions in all countries.

As highly vulnerable island states, often with relatively small populations and economies, there continues to be strong justification for ensuring the Caribbean's access to adequate and appropriate financing at the IMF and multilateral development banks. In this regard, more focus will have to be directed at supporting initiatives that enhance the region's resilience to domestic and external shocks, natural disasters, and the effects of climate change.

IMF Reform

The economic and financial crisis revealed the deep global integration of modern financial markets and economies. Consequently, the IMF must appropriately adapt how it promotes international economic stability and cooperation. The Fund's crisis response of bolstering its resource levels and reforming lending tools was necessary, but as the economy continues to recover, the IMF needs to more effectively prevent crises. And it will have to ensure that the way in which it prevents crises does not sow the seeds of an even greater, more damaging crisis in the future. Reforms at the IMF must position the institution to carry out this mandate legitimately, credibly and effectively. Equally important, we must ensure that reforms to the Fund's toolkit balance the objectives of crisis prevention and resolution against the pernicious effects of moral hazard. We must not forget the central lesson of the crisis.

Increased legitimacy, credibility and effectiveness at the IMF will only be possible if we properly align the role, tools, resources and governance of the Fund. A clear agreement on the Fund's role is the starting point from which we will be able to determine the resources and tools that the Fund needs. In parallel, we need to make appropriate changes to the Fund's governance structure to ensure it is managed accountably.


The high degree of global economic and financial integration makes the Fund's core function of international monetary and financial cooperation as important as ever. While some have called for IMF involvement in new areas and created pressure to expand the IMF's mission, the Fund is best equipped to achieve its purpose by modernizing its core surveillance and crisis lending functions. The Fund should continue the role it has taken since its inception: to identify and act on threats to economic stability, and when crises do occur, strike the right balance between IMF financing and needed policy adjustments to restore confidence and strengthen the macro economy.


It is clear, however, that the escalating nature of the financial crises that we have witnessed over the past 20 years has made it more difficult for the Fund to deliver on its assigned role. As a result, today it is viewed by some as less credible in its policy advice and less effective in its ability to assist members strike the right balance between financing and adjustment. In this respect, lessons from the crisis have taught us that we must identify financial sector vulnerabilities early, and act on global imbalances and other threats. To increase the Fund's surveillance effectiveness, practices must evolve to meet financial innovation and global economic trends. The IMF needs to be in a position where it can provide clear advice on national-level events and the resulting regional or global spillover effects. But this advice must be credible if member governments are to act before “problems” escalate into “crises”.

Four specific proposals merit consideration. First, reviews under the joint IMF and World Bank Financial Sector Assessment Program should be mandatory for countries with regionally or systemically important financial sectors. Such a requirement would better inform analysis of their strengths and vulnerabilities, and lead to a clear understanding of necessary responses. Second, to increase coordinated policy actions and the understanding of international spillovers of domestic policies, the IMF should initiate thematic reports or Article IV reviews where the Fund engages multiple countries simultaneously to address similar challenges. Third, Article IV reviews could contain internal and external risk assessments, including a procedure to stress test projections and policy frameworks in the face of a large macroeconomic or financial shock. Finally, the IMF and the Financial Stability Board must better define their respective areas of jurisdiction in order to both avoid gaps and prevent overlap.

In this respect, a key lesson from the crisis is the threat posed by regulatory arbitrage—the incentive to structure financial activities in institutional forms and jurisdictions in a manner that reduces regulatory and capital requirements. As we have seen, global financial integration can provide important benefits in terms of efficient risk bearing and access to investment finance. Unfortunately, it can also be a source of systemic risk if financial problems in one country spill over to its neighbours. If we do not address this problem, we will have ignored a central lesson of the crisis. Part of our response, therefore, should be the recognition that, as members of the international community with a joint interest in the prudent stewardship of the global economy, we have obligations to the system and to each other. Much work would be required to identify the precise nature of these obligations, but the starting point is agreement on minimum capital and liquidity buffers.

Simultaneously, there is a continued need for the IMF to provide targeted technical assistance to members to help them internalize the benefits of globalization through strong policy and regulatory frameworks. This includes an increased presence for the IMF in capital account issues, not as a referee for members' policies, but as a venue for collaboration, debate and technical assistance on stability promotion measures such as financial sector development.

If a crisis were to occur, however, the IMF needs the right framework to intervene effectively. It now has responsive and flexible tools to provide liquidity if situations such as the recent financial crisis arise, and the ability to ensure the right balance of lending and conditionality when crises of solvency emerge. The Flexible Credit Line (FCL) is one such successful tool. The credibility and effectiveness of the facility is due to its strict qualification criteria, and we should not pursue FCL modifications that could dilute its positive aspects. As we learn from the crisis, we must continue to ensure that the IMF's lending toolkit does not increase moral hazard in the global economy.


Extraordinary resources were mobilized during the crisis in order to provide members and markets with confidence that the IMF was ready and able to act. Canada supported the Fund's regular and concessional lending programs with a temporary $10-billion bilateral loan to the IMF as well as new commitments of $800 million in loan resources, and $40 million in subsidy resources, to the IMF's Poverty Reduction and Growth Trust (PRGT) to help low-income countries post-crisis and over the medium term. We encourage those who have not already done so to finalize their pledges to the PRGT to ensure it has sufficient resources to meet demand over the medium term.

We now need to look longer term. Since adequate and appropriate lending resources are critical to making the IMF credible, we believe that the IMF needs to have a quota increase that is in line with the lending role of the Fund and its status as a quota-based institution. The significant increase in the New Arrangements to Borrow must be considered when determining an appropriate quota increase, and fundamentally, we must prevent an overly enlarged Fund that would create moral hazard.


Governance is the capstone piece of IMF reform that will tie all aspects together and ensure legitimacy, credibility and effectiveness at the IMF. This includes more clearly delineating the roles and responsibilities of the respective levels of governance to ensure accountability, transparency and efficiency in the Fund's operations and decision-making.

The ongoing quota and voice reform discussions are integral to the legitimacy of the Fund. We encourage all members to ratify the 2008 quota and voice agreement, and we hope to complete the next quota review by November 2010. We need to ensure that under-represented countries receive a quota allocation that represents their weight in the world economy, and we must implement the International Monetary and Financial Committee (IMFC)/G20 commitment to a shift in IMF quota share to dynamic emerging markets and developing countries of at least 5 per cent from over-represented countries to under-represented countries using the current quota formula as the basis. Over-represented members should be ready to give up share, and Canada will do its part.
Several aspects of corporate governance reform must be addressed. First, there has to be an appropriate balance between the independence of the IMF and oversight by Ministers. The optimal levels of independence and oversight will depend on the lending role, tools and resources of the Fund, and should be adapted based on the reforms of each of these, but we can start to make progress now.

Second, Fund effectiveness requires member countries to be engaged at the Fund so that they give considered guidance and in turn are suitably responsive to IMF priorities. IMF Governors should establish the strategic direction of the Fund, and the Executive Board and management should act based on this direction. The lines of accountability for each level of governance need to be clearer, including roles, responsibilities and reporting mechanisms. We need to strengthen the role of the IMFC to have IMFC members responsible for decisions on key issues, and we could consider the possibility of activating a Ministerial Council.

Third, we are encouraged that the IMF is reforming its senior management selection processes. Selecting senior management using an open, transparent and merit-based process—regardless of candidate nationality—will contribute to legitimacy.


Through meaningful and thoughtful reform, the IMF will gain the legitimacy, credibility and effectiveness it needs. Legitimacy will arise when the Fund has voice and representation that reflects the economic realities of the 21st century, and when the Fund makes transparent decisions with clear accountability. The Fund's credibility rose throughout the crisis period as it showed it could intervene to help stabilize the global economy. Further credibility gains will occur by having the appropriate tools for surveillance and lending that enable the Fund to achieve its mandate, and by having a governance framework where the Fund is able to take decisions quickly to act on emerging crises. Effectiveness results from the links between all four facets of reform: an effective IMF requires the right resources and tools, and strategic and accountable governance that pursues stability in the global economy.

Washington, DC
October 9, 2010

We agree that the International Monetary Fund (IMF) played an important role in helping the global economy through the financial crisis and towards recovery, particularly through fostering international economic cooperation. With a new set of global economic challenges lying ahead, the Fund will have an important role to play in ensuring a healthy and well balanced international monetary system. It will do this by promoting sound economic policy frameworks; providing financial assistance when needed that strikes the right balance between financing and adjustment; and sustaining co-operation and consultation among its members.

In doing this the IMF must ensure that the proper steps are taken to protect against another severe financial crisis. The IMF can play a critical role in promoting an open international monetary system that facilitates timely, orderly exchange rate adjustment. Future IMF reforms, particularly to the Funds' lending instruments and resources, can help to prevent future crises, but must also encourage members to adopt sound policy frameworks.

Canadian Developments

The Canadian economy continues to recover from the deepest global recession since the 1930s. Real gross domestic product (GDP) in the second quarter of this year increased by 2.0 per cent, after posting gains of 5.8 per cent in the first quarter and 4.9 per cent in the fourth quarter of 2009. The economic recovery has been underpinned by Canada's Economic Action Plan as well as a strong recovery in private domestic activity. As a result of this strong performance, Canada has virtually recouped real economic activity lost over the recession, the only G7 country to do so. Canada's solid economic performance has also supported a recovery in the labour market, as all of the jobs lost during the recession have been recovered.

The priority of the Government is to complete the implementation of Canada's Economic Action Plan—a two-year C$62‑billion plan (equivalent to about 2 per cent of GDP on average per year) to support economic growth and create and maintain jobs.
To maintain and preserve Canada's strong financial position, the Government is committed to return to budgetary balance over the medium term, consistent with the G20 commitment to halve deficits by 2013 and stabilize or reduce government debt-to-GDP ratios by 2016. In Budget 2010, the Government set out a three point plan to bring Canada's finances back to balance over the medium term. First, it will end the temporary measures as scheduled in early 2011. Second, targeted measures to restrain the growth of direct program spending have been put in place. And finally, the Government is undertaking a comprehensive review of its administrative functions and overhead costs in order to secure further efficiencies and savings.

Irish Developments

Irish economic developments

Turning to the Irish situation, following two exceptionally difficult years it now appears that the economy will record some marginal increase in activity this year. The exporting sector is leading the way, in part a reflection of the substantial – and necessary – competitiveness adjustments that have occurred over a relatively short timeframe. An encouraging feature has been the broadening of the export base in recent quarters, which bodes well for the future.

Domestic demand, however, lags behind. Excess supply continues to weigh on residential investment and will continue to do so for some time. Household spending remains subdued, on the back of declining real incomes and weak confidence. Having said that, the latest labour market data point towards stabilisation.

Apart from supporting the banking sector, the most pressing issue is the need to ensure the public finances remain on a sustainable path. While revenue and expenditure plans for this year are in line with expectations, the underlying deficit – that is after excluding one-off issues related to the banking sector – will nevertheless be of the order of 11.9 per cent of GDP.[1] The Irish Government has recently reiterated its commitment to reducing the headline deficit to below 3 per cent of GDP by 2014, and will publish a four-year budgetary plan setting out the annual consolidation measures necessary to achieve this early next month. This is to be welcomed, as it will underpin confidence and credibility in the sustainability of the public finances in Ireland, and as such help support economic growth over the short and medium term.

Irish banking developments

The Irish Government has recently reiterated its strong commitment to restoring the Irish banking system to health. This involves a number of actions some of which have already been undertaken with more planned by the Irish Government. A Government guarantees of banks' liabilities has been extended to ensure the banks remain able to access the necessary liquidity. The Irish Government has worked to provide certainty on the final costs of repairing the banking system. The National Asset Management Agency provides a facility to ensure that the losses of participating institutions are recognised upfront and that the most impaired loans are removed from their balance sheets. Together with the capitalisation of the banks and the resolution and reorganisation of the most impaired institutions, this should allow the banking system to play its essential role in providing the finance required to underpin economic recovery and fiscal sustainability. In addition the Central Bank of Ireland has replaced the previous dual structured Central Bank and Financial Services Authority of Ireland. The new structure has a unitary board chaired by the Governor with a specific focus on prudential regulation, protecting consumers and maintaining the financial stability of the financial system.

Caribbean Developments

While the economic outlook has improved for members of my Caribbean constituency, medium-term growth is expected to be subdued and below the Western Hemisphere average. Meaningful strengthening is not expected until 2011, underpinned by only modest prospects for tourism and FDI inflows. There are considerable downside risks, mainly associated with lowered expectations for the primary trading partner, the United States, amid household sector deleveraging and weak employment trends. The impetus from Europe is also likely to be mild, as households adjust to fiscal austerity measures. The Caribbean region also expects greater challenges in attracting FDI inflows as global flows normalize at below pre-crisis levels. Caribbean authorities believe that structural reforms to improve the business environment can help to improve these prospects, as can effective and well targeted public sector investment programs. They acknowledge that reforms must occur within a framework of fiscal consolidation to reduce high debt burdens and to enhance the economies' resilience to future shocks. While three Caribbean countries have taken on IMF programs to guide the adjustment processes, the region's engagement with the Fund has more generally intensified through the Fund's heightened surveillance activities and the increased technical assistance being provided, particularly through the focused work of the Caribbean Regional Technical Assistance Centre (CARTAC).

Enhancing financial sector resilience and stability is a top priority for the Caribbean. The authorities are intensifying their efforts to strengthen and consolidate the supervision of non-bank institutions, and to fortify bank balance sheets against weakened credit quality and strained liquidity conditions. Cooperation among supervisors and regulators is also advancing more vigorously, given the increasing regional connectedness of the financial system--underscored by the need for a speedy resolution to failed insurance sector operations, which spanned multiple jurisdictions. Many Caribbean authorities are also strengthening their international cooperation mechanisms, having concluded a significant number of Tax Information Exchange Agreements (TIEAs) to improve their standing with the OECD. They continue to urge however, that global initiatives to promote transparency and financial stability do not impinge upon the ability of legitimate jurisdictions to benefit from the provision of international financial services.

IMF Reform

Since the onset of the crisis, a range of surveillance and lending reforms have been put in place. These reforms have added to the Fund's existing tools for safeguarding the stability of the international monetary system. The challenge now is to utilize these reforms to assess the risks to global financial and economic stability arising from unsustainable global imbalances and possible financial sector vulnerabilities. Reforms to IMF surveillance and the scope of IMF lending can help to prevent future crises. In addition, complementary reforms to the Fund's governance structure are required to ensure that these tools are used appropriately.


We are encouraged by recent efforts to enhance the quality and substance of Fund surveillance. Last year's introduction of the Early Warning Exercise and revamping of the Financial Sector Assessment Program (FSAP) should help facilitate the identification of vulnerabilities stemming from the financial sector and global imbalances in a timely fashion.

Future reforms to the substance of Fund surveillance should focus on further enhancing analysis, particularly through more extensive examination and clarification of the risks arising from global imbalances. Specifically, Fund analysis of cross-country spill-over effects; the impacts of precautionary reserves accumulation; financial sector vulnerabilities; and international capital flows, will be critical. Existing bilateral and multilateral surveillance products should be relied upon as much as possible so as to stream-line analysis. The IMF Statement of Surveillance Priorities (SSP) in particular can guide Fund surveillance and be a vehicle for Governors to set strategic surveillance priorities and promote accountability.

Lending Instruments and Fund Resources

Recent reforms have dramatically altered the Fund's lending toolkit and substantially strengthened the provision of global financial safety nets, providing a range of options for countries seeking financial assistance. In addressing the liquidity concerns and balance of payments problems resulting from, and laid bare by, the global economic crisis, the IMF substantially expanded its available resources and introduced new and improved lending instruments. The New Arrangements to Borrow (NAB) was increased to US$500 billion, there was a US$250 billion general Special Drawing Rights (SDR) allocation, and the Flexible Credit Line (FCL) was introduced. More recently, the Fund has reformed the FCL and created a new Precautionary Credit Line (PCL).

These reforms represent significant change. Before undertaking further significant changes, we need to ensure that the proper governance structures are in place to maintain accountability and due oversight for IMF programs. Much of the financial sector reform effort of the G20 is aimed at reducing incentives to take undue risk. We must work to ensure this is also the case at the country level.

Similarly, a further increase in quota resources will be necessary in order to realign relative quota shares as part of current quota review, but the size of the aggregate increase should reflect the need to restore the adequacy of IMF resources without expanding overall Fund resources so far as to spur excessive risk-taking. To this end, a substantial increase in aggregate IMF quota should be offset by a scaling back of NAB resources, in line with the membership's calls to maintain the Fund's status as a quota-based institution.

Voice and Representation

One of the main elements of IMF reform centers on efforts to enhance the legitimacy of the institution by ensuring that all members are properly represented. The current quota review, together with possible reforms to the structure of the IMF Executive Board, will be instrumental towards a more proper alignment of member countries' voice and representation with their global economic weight, while protecting the voting power of the Fund's poorest members.

Securing a new quota deal that meets the Pittsburgh commitments will require a significant element of compromise and pragmatism. As a first step, it should remain a priority for those members that have not already done so to ratify the 2008 quota agreement. Implementation of this agreement will increase the voice and representation of emerging markets and developing countries (EMDCs) through the increase in quota, the increase in basic votes, and the introduction of second alternate Executive Directors for large multi-country constituencies.

Quotas constitute the bulk of overall voting power at the Fund. They also represent the financial obligation of each member and have a bearing on access to Fund financing. With such heavy responsibilities, it is essential that quotas properly reflect global economic weight, and align incentives in a manner that promotes fundamentally sound economic policies that are consistent with strong, sustainable, and balanced global growth.

In addition to quota reform, implementing changes to the landscape of the IMF Executive Board is another way of enhancing the Fund's role in the global economy. In particular, it is clear that the voice and representation of (EMDCs) at the Executive Board needs to increase. We must do our best to ensure that the IMF membership is most appropriately represented at the table.

Corporate Governance Reforms

A number of other governance reforms can help enhance the effectiveness, credibility, and legitimacy of the IMF. Firstly, since ministers and governors play a primary role in establishing the strategic direction of the Fund, pursuing options for increasing Ministerial engagement with Fund issues will be essential. Second, a clarification of the roles and responsibilities of the various bodies in the IMF governance structure should be undertaken to enhance the accountability of the Executive Board and Fund management.

We also reaffirm our desire to see an open, transparent and merit-based management selection process introduced at the Fund whereby senior management is selected regardless of candidate nationality. Done in step with quota and Executive Board reform, this will go a long way towards effectively enhancing Fund legitimacy.

Annex 4

Canadian Statements at the Development Committee
of the Boards of Governors of the World Bank and IMF, 2010

The Honourable Jim Flaherty, Minister of Finance for Canada
on behalf of Antigua and Barbuda, Bahamas, Barbados, Belize, Canada, Dominica, Grenada, Guyana, Ireland, Jamaica, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines

Washington, DC
April 25, 2010

Over the past few years, the World Bank has been on the front lines responding to the global financial and economic crisis. This crisis has precipitated exceptional international collaboration, including joint efforts by the Group of Twenty (G20) and other multilateral financial institutions. This experience underscored the need for these multilateral institutions, including the World Bank, to continue to advance critical reforms to ensure they remain effective and responsive. Ongoing governance and operational improvements have positioned the World Bank well to respond to future global turbulence. However, significant challenges still lay ahead and much remains to be done. Continuing to support countries as they deal with the aftermath of the financial crisis, getting back on track as we head toward the critical final years of implementing the Millennium Development Goals, and developing a global response to climate change are just a few of the challenges that the Bank now faces.

Today's meeting of the Development Committee is an especially important one. Decisions taken today will shape the future of the World Bank Group, and put it on a course to meet these important challenges.

We must make the improvements necessary to ensure that the World Bank becomes an even more focused, effective and responsive institution. We must modernize voice and participation within the Bank, rebalancing its governance structure to better reflect the views of all shareholders. And we must enhance the effectiveness of these significant reforms by strengthening the Bank's financial capacity, including new capital for the International Bank for Reconstruction and Development (IBRD).

The financial replenishment for the World Bank's International Development Association (IDA) will be finalized later this year, and will represent a renewed commitment to helping those countries with the highest levels of poverty. This replenishment presents a great opportunity for Canada and other shareholders to strengthen the Bank's policies and practices in such areas as crisis response and fragile states, where performance has been mixed.

Creating a Focused, Effective and Responsive Institution

The financial crisis has left a legacy of global economic slowdown and weakened financial markets. It has also left fiscal challenges in many countries. A growing global economy is the surest path to prosperity for all members of the international community. That is why we have been working hard to reach agreement within the G20 on policy actions necessary to meet our shared objectives of strong, sustainable and balanced growth.  

Yet, as we have seen, the poorest countries are still suffering the consequences of the global recession with decreased capital flows, remittances and income from tourism. As a result of these factors, the number of people living in poverty is projected to rise this year. As a result, an effective and responsive Bank meeting the needs of the poor is required now more than ever.

The World Bank has put considerable effort into a strategy to reposition itself for a world emerging from financial crisis. I am encouraged by elements of the strategy that emphasize the highest value interventions: targeting the poor and the vulnerable; creating opportunities for growth; providing cooperative models; strengthening governance; and preparing for the inevitable crises of the future. As important as the strategy itself is a plan for implementation that includes benchmarks with which we can track progress and review performance over time.

I would also like to commend the Board's work on strengthening its governance and oversight role, and in many ways has acted as a catalyst for many of the operational reforms. Last April's review of internal governance by Executive Directors led to an ambitious work program for the Committee on Governance and Executive Directors' Administrative Matters, and many of the recommendations are either completed or in progress. This suite of reforms to internal governance structures and the accountability framework has been designed to improve the efficiency and effectiveness of the World Bank Group and strengthen its standing and trust as a global development institution.

Many of the reforms are interdependent and mutually reinforcing, and successful implementation will result in an organization which is closely aligned with the vision and objectives of a proactive and responsive World Bank. Success in the eyes of poor countries will also mean timelier project approvals, streamlined disbursements, and a clear understanding of the results that are achieved from shareholders' investments.

The World Bank will also need to determine how it can be most effective by working collaboratively with other multilateral institutions, each according to its own strengths. Over time, this will result in the World Bank increasing its efforts in particular areas, and decreasing its efforts in others.

One area in which the Bank should continue its focus is on reducing global poverty, including remaining steadfast in the fight against hunger. Last Thursday, I had the pleasure of attending the launch for the new Global Agriculture and Food Security Program (GAFSP), a multilateral trust fund focused on scaling up sustainable agricultural and food security assistance to low-income countries. We see the GAFSP as an effective means of improving food security through sustainable agricultural development, and Canada is proud to be among the first contributors to the program with a contribution of $230 million. We hope that other donors will participate in this important initiative.

The work done by the World Bank through IDA is another good example of how it strives to maintain its focus on the world's poorest. For instance, IDA provided US$39 million in further debt relief to Haiti as a response to this year's earthquake. Also, important improvements to the Multilateral Debt Relief Initiative of the Bank have been agreed to amongst donors as part of the IDA replenishment discussions currently taking place. Going forward, we would like the World Bank to (i) review both the length and volume of its engagement in fragile states; (ii) establish clear triggers and objectives for a permanent Crisis Response Window; and, (iii) simplify and strengthen its financial instruments to benefit borrowers most in need of its assistance.

Modernizing Voice and Participation

A more effective and responsive World Bank must reflect the present realities of the international community. As such, the Bank's voice and participation reform is another critical part of strengthening the Bank for the future, and we are committed to reaching an agreement at this meeting. It is already significant that the membership has agreed to develop a Bank-specific formula for shareholding for the first time, and with shareholding reviewed regularly, this should give us a basis for a proper evolution of voice and voting power over time.

We give our full support to the agreement reached in Istanbul for an immediate shift of at least an additional 3 per cent to developing and transition countries, on top of the 1.47 per cent already agreed through the first phase of reforms, with contributions from over-represented countries, and protection for the smallest poor countries.

In choosing a formula that reflects this agreement, it is important that we make sure it remains grounded in sound principles and can serve as a sensible foundation for shareholding into the future.

Strengthening the World Bank's Financial Capacity

The World Bank, through IBRD, played a critical role in supporting its client countries through the recent global financial and economic crisis. It responded swiftly and significantly, including a tripling of its lending levels to compensate for a tightening of credit from other sources. We recognize that this effort has resulted in a reduction of resources for the future. In recognition of this effort, and the implementation of the reforms already noted, we support increasing IBRD's capitalization to ensure that it has enough capacity to continue lending at its pre-crisis level.

We all have a shared responsibility to support this increase in capitalization. It is critical that members release capital previously contributed to IBRD in an unusable form. And, recognizing the important role that loan pricing plays in long-term financial sustainability, we look forward to a comprehensive review of IBRD loan pricing during the annual review process.

We have confidence providing significant financial support to IBRD because we know that this contribution provides important support for middle-income countries, as well as low-income countries, including through IBRD's net income transfers to IDA. We look forward to the development of a rules-based framework to ensure continued transfers to IDA, in line with IBRD's financial ability.

The World Bank's International Finance Corporation (IFC) plays an important role as the largest provider of multilateral finance to the private sector in developing countries. Canada is pleased to have partnered with this institution on a number of occasions recently, including through the Global Trade Liquidity Program. IFC's growth rate remains impressive. We are open to it seeking resources for continued growth through a Specific Capital Increase, voluntary hybrid capital and earnings retention. Similar to IBRD, it remains important that IFC continue to support the development of low-income countries through IDA, using a rules-based framework that recognizes IFC's financial capacity and triggers transfers of its net income as appropriate.


The crisis has galvanized unprecedented international cooperation and has underscored the need to modernize and strengthen multilateral institutions to reflect the present reality. It requires institutions that are responsive to client needs, accountable and that can give voice to the voiceless. The World Bank has been a leader, unleashing a vigorous response to the global financial and economic crisis. Now, we must work together to build on this momentum, taking the decisions necessary to create a World Bank that is well structured, well capitalized and ready to take on the challenges of today and tomorrow.

Washington, DC
October 9, 2010

We believe that international financial institutions provide an important vehicle through which member countries put international cooperation into practice. The World Bank continues to be on the front lines of the effort against the global financial and economic crisis. Sustained cooperative effort has produced results: the global economy is stabilizing and is now in recovery mode because of the extraordinary and coordinated actions that governments and international financial institutions, including the World Bank, have taken to protect against the economic shocks that we have experienced.

Canada has weathered the crisis well. Our experience now provides an example to others as they take the bold steps necessary to strengthen public finances and financial systems. These countries are now turning the corner towards economic recovery. The global recovery continues to be fragile, however, and we must recognize the benefits of coordination and cooperation, and continue down this path.

We must also recognize that some regions, including the Caribbean, continue to grapple with the negative impact of the global crisis. We must work to ensure that recovery is balanced and shared by developed and developing nations alike. When they met in Toronto earlier this year, Group of Twenty (G-20) Leaders committed to create the conditions necessary to achieve strong, sustainable and balanced growth.

There are still other regions that have had the misfortune this year of having crisis compounded upon crisis. Natural disasters afflicting the people of Haiti and Pakistan continue to occupy our minds and our efforts. We wish to express our gratitude to the World Bank for its timely and well-planned interventions to assist with reconstruction efforts, and recognize that, while much work has been done, it will be many years and much more effort before lives are returned to anything approaching normality in these countries.

Focusing on the Millennium Development Goals (MDGs)

As Prime Minister Stephen Harper noted in his address to the United Nations last month, Canada has clearly demonstrated its resolve to achieve the MDGs. We have already doubled our aid to Africa. We are on track to double our international assistance, to a total of $5 billion this year. We untied our food aid in 2008 and will untie all of our aid by 2012–13. At this year's G-8 Leaders Summit, Canada championed—and Leaders agreed to enact—the Muskoka Initiative on Maternal, Newborn and Child Health, which will do much to accelerate progress on MDGs 4 and 5 through cost-effective interventions in areas where the least progress has been made to date. Canada has committed $2.85 billion over the next five years towards maternal, newborn and child health.

Hunger is one of the major constraints to accelerating progress across all the MDGs. We would like to acknowledge the leadership of Ireland in highlighting the central importance of eradicating hunger, given its own history of famine and its long-standing role as advocate for the millions of people who suffer its terrible effects.

Another impediment to progress on the MDGs is corruption in the natural resources and extractive industries sectors. These sectors play an increasingly important role in the economies of developing countries and without good governance and institutions, they run the risk of fuelling corruption and conflict. We support the efforts the World Bank Group to prevent and curb illegal activities and corruption in these industries. We welcome recent initiatives of the international community to improve due diligence and create supply chains that do not support trade in conflict minerals. We urge candidate countries to the Extractive Industries Transparency Initiative to complete the implementation process as a mechanism to enhance governance and accountability in the extractive sector.

The recent financial and economic crisis has reinforced our resolve to tackle global issues in a coordinated fashion. On October 8, 2010, I chaired a meeting of the Commonwealth Finance Ministers in Washington. This group of 54 nations, including many of the member states of our constituency at the World Bank, shares a common heritage and desire to cooperate within a framework of common values and goals. At our meeting, we resolved to strengthen this spirit of cooperation by improving collaboration between the Commonwealth and the G-20. This strong spirit of global cooperation gives me confidence that we can continue on the path towards strong, sustainable and balanced growth that benefits even the poorest of our global citizens.

A More Efficient, Effective and Accountable Bank

Over the course of the global financial and economic crisis, the World Bank Group has been instrumental in the re-establishment of global stability by delivering on record levels of lending to compensate for diminished levels of private sector capital. Shareholders of the Bank have supported this response through recapitalization, ensuring that the International Bank for Reconstruction and Development (IBRD) and the International Finance Corporation (IFC) together have a sufficient capital base to increase annual lending from pre-crisis levels by over 80 per cent, to US$32 billion.

When the global community agreed to this program of recapitalization at the Spring Meetings in April 2010 and at the G-20 Leaders Summit in Toronto, we required the World Bank to implement reforms that would usher in renewed confidence in the development results attained from our recapitalization investments. We must now ensure that these reforms are implemented in a way that builds confidence in the global financial infrastructure, including the World Bank, and the resiliency of the countries that the World Bank supports.

Management must continue to press towards efficiency, effectiveness, legitimacy and accountability of the World Bank Group and ensure it remains client-focused.

This year, the World Bank has made changes to the Annual Meetings that will result in enhanced accountability and shareholder stewardship. This is in response to our requests, as Governors, to strengthen accountability and oversight and demonstrates that the new governance culture is gaining momentum.

Beginning with the elections that concluded yesterday, we will have a third chair for Africa at the Board of Directors. This important development captures the essence of the discussions on balanced and equitable representation in the governance of this institution.

Durable reform is a gradual process that takes time, and one on which we must remain focused. The Board of Directors is advancing a challenging agenda to strengthen the internal governance architecture of the World Bank. We look forward to seeing measurable and concrete results as this reform agenda advances, including receiving a breadth of well-formulated and actionable options from the Working Groups on President Selection and Dual Evaluation of the Board and Management in advance of our next meeting in spring 2011.

Our Commitment to the Global Community

As the Bank makes progress on its commitment to improve its own efficiency, effectiveness and accountability, we also bear responsibility as shareholders and donors to continue to do our part. This responsibility extends beyond providing financial support as required, and includes a continual push for measurable results.

Our commitment to results includes encouraging greater involvement and innovation from the private sector in international development as a critical engine of growth and poverty reduction. Canada is pleased to partner with the World Bank Group on a number of initiatives designed to leverage private sector investment for development:

  • Helping fill a crucial gap in private sector financing to sustainable agriculture in low-income countries by being the first participant in the Private Sector Window of the Global Agriculture and Food Security Program, with a $50-million contribution;
  • Supporting small and medium-sized businesses in all sectors to have critical access to financing needed to expand their businesses and create jobs through Canada's leadership investment of $20 million into the scale-up of winners of the G-20 SME Finance Challenge;
  • Helping to build private sector capacity to address climate change through a landmark investment of $285 million in concessional financing for clean energy projects, and $5 million to build financial technical expertise for these investments; and
  • Harnessing the creativity and resources of the private sector in achieving breakthrough innovations in food security and agricultural development in poor countries through advance market commitments.

The IFC plays an important role in supporting private sector development. We must continually ensure that the growth of these taxpayer-subsidized institutions does not crowd out a return of private sector investment in emerging markets. The IFC should continue its push into low-income countries and frontier markets: places where growth is constrained by an abundance of risk and an undersupply of private capital. With the IFC's anticipated growth over the coming decade will come additional net income that should be used, in part, to further bolster the financial capacity of the International Development Association (IDA) without jeopardizing the long-run financial stability of the IFC.

The World Bank's Multilateral Investment Guarantee Agency (MIGA) has adopted changes to its convention to provide greater flexibility and scope to do more business and generate greater development impact—changes that will be instrumental in ensuring the agency's relevance going forward. MIGA's political risk insurance products are important for promoting foreign direct investment into developing countries.

We will support an ambitious replenishment of IDA this fall. As in past replenishment cycles, Canada and Ireland are prepared to provide a meaningful level of assistance to those low-income countries around the world that have had to work additionally hard to protect their vulnerable populations and continue to face significant hardship as a result of the global economic crisis. This replenishment, like capital increases at the IBRD, must be matched with a rigorous focus on results.

We support IDA's efforts to recover funds from countries that no longer require the preferential rates that IDA offers, so that IDA credits can be redirected towards their most efficient and effective use: the low‑income countries that IDA targets.

Already we have reached agreement to make important changes that recognize the unique challenges faced by fragile, post-conflict and small states, which will result in greater investment in these categories of countries. It is becoming increasingly clear, as well, that a key prerequisite to sustained development is good governance and strong institutions that protect and promote human rights and facilitate desired development outcomes.

Also under discussion is the creation of a Crisis Response Window. We can all recognize the importance of creating institutional capacity to respond to future crises, but this must be done in a pragmatic way, with clear criteria and parameters, ensuring that donors can have confidence that important development assistance is being put to effective use.

We can point to several development success stories: countries that have experienced sustainable growth and are now transitioning from recipient to contributor in a way that was unknown 20 years ago. Accepting responsibility for international obligations is an outcome that is to be celebrated where it has occurred, and encouraged where it has yet to occur. Our continual and ongoing efforts to achieve strong, sustainable and balanced growth are what mark the global cooperation that has been strengthened over the past two years.

Annex 5

Communiqués of the International Monetary and Financial Committee of the Board of Governors of the IMF, 2010

Washington, DC
April 24, 2010

Communiqué of the Twenty-First Meeting of the International Monetary and Financial Committee of the Board of Governors of the International Monetary Fund

Chaired by Dr. Youssef Boutros-Ghali, Minister of Finance of Egypt on April 24, 2010

1. Global economy. Signs of a strengthening economic recovery are encouraging but many challenges remain that need to be tackled collaboratively. We will continue to work to phase in country-specific exits from stimulus, recognizing the diverse pace of recovery and potential spillovers across countries and regions. We remain firmly committed to implementing policies that are collectively consistent with our goals for a balanced and stable global economy, renewed job creation, and price stability, and to avoiding protectionism in all its forms. We are strongly committed to ensuring sustainable public finances and addressing sovereign debt risks. We call on the Fund to continue strengthening its monitoring of global economic and financial developments and providing policy advice. We welcome the Fund's support of the G-20 Mutual Assessment Process, which should help guide members toward strong, sustainable, and balanced growth.

2. Financial sector. Problems in the financial sector were at the heart of the recent crisis. Strengthening financial regulation, supervision, and resilience remains a critical but as yet incomplete task. We agree to redouble efforts to forge a collaborative and consistent approach for a stable global financial system that can support the economic recovery. We look forward to the report on progress and priorities on these issues. We look forward to the completion of reviews under the Financial Sector Assessment Program of countries with systemically important financial systems. We support continued efforts to map systemic risks and transmission channels, and look forward to a report on addressing data gaps; we also support exploring a possible voluntary financial data dissemination standard based on broad consultation, while respecting country circumstances. We look forward to discussing the work by the Fund on a range of options on how the financial sector can make a fair and substantial contribution to cover the burden of extraordinary government support, while reducing excessive risk-taking, helping to promote a level playing field, and respecting country circumstances.

3. Low-income countries. We welcome the recovery in many low-income countries, reflecting their improved macroeconomic frameworks, effective policy responses, and the support of the international community. We thank members that have committed additional loan and subsidy resources for concessional lending, and call on other donors to contribute. We welcome the recent adoption of the framework for facilitating mobilization of loan resources for concessional lending to low-income countries. We look forward to consideration by the Fund of proposals for providing exceptional debt relief to countries hit by catastrophic disasters and, in that context, to joining international efforts to relieve Haiti's debt.

4. IMF reform. We commit to accelerate our work to improve the Fund's legitimacy, credibility, and effectiveness through quota and governance reforms and modernizing its surveillance and financing mandates.

  • Quotas and other governance reforms. We urge all members to promptly consent to the 2008 quota and voice reform. We pledge to complete the quota review before January 2011 in line with the parameters agreed in Istanbul and in parallel deliver on other governance reforms. We take note of the Board's progress report on quota and governance issues, and intend to remain deeply engaged in these matters. We will take up these issues at the Annual Meetings, and in preparation for this, we call for an acceleration of the substantial work still needed on the full range of quota and other governance reforms, including management selection, ministerial engagement, Board composition and size, voting majorities, and staff diversity. We welcome the agreement on the New Arrangements to Borrow. We look forward to full implementation of the new income model, welcome the initiation of the gold sales by the Fund, and urge all members to promptly consent to the 2008 reform to expand the Fund's investment authority.
  • Mandate. We commend the Fund's intensive efforts in responding to members' needs in dealing with the fallout from this crisis. The crisis has underlined the importance of strengthening the analysis of systemic risks and linkages, of avoiding moral hazard, and of responding to such crises as appropriate with adequate quota and other resources, and well-tailored facilities with adequate safeguards. In this regard, we welcome the important work on the Fund's mandate and responsibilities over surveillance, lending, and the stability of the international monetary and financial system. We urge full and open debate aimed at enhancing the Fund's effectiveness in these areas, including critically on ways to improve the focus and traction of surveillance, crisis prevention, and options to improve the global financial safety net based on sound incentives. We call on the Fund to study the policy options to promote long-term stability and the proper functioning of the international monetary system. In the meantime, we call on the Fund to strengthen surveillance further, including by sharpening its focus on macro-financial issues, capital flows, and systemic risks and spillovers. We call on members to fulfill their obligations under Article IV of the Articles of Agreement. We look forward to reviewing concrete progress on these issues at our next meeting.

5. Next IMFC meeting. Our next meeting will be on October 9, 2010 in Washington, D.C.

Washington, DC
October 9, 2010

Communiqué of the Twenty-Second Meeting of the International Monetary and Financial Committee of the Board of Governors of the International Monetary Fund

Chaired by Dr. Youssef Boutros-Ghali, Minister of Finance of Egypt, on October 9, 2010

Global economy. Economic recovery is proceeding, but remains fragile and uneven across the membership. Faced with this source of potential stress, we underscore our strong commitment to continue working collaboratively to secure strong, sustainable, and balanced growth and to refrain from policy actions that would detract from this shared goal. Our priorities are to address remaining financial sector fragilities; ensure strong growth in private sector demand and job creation; secure sound public finances and debt sustainability; work toward a more balanced pattern of global growth, recognizing the responsibilities of surplus and deficit countries; and address the challenges of large and volatile capital movements, which can be disruptive. The rejection of protectionism in all its forms must remain a key element of our coordinated response to the crisis; renewed efforts are urgently needed to bring the Doha Round to a successful conclusion.

Financial sector reform. We welcome the recent Basel agreement on a substantial improvement in the quality and quantity of bank capital together with the introduction of a global liquidity standard and a leverage ratio. We look forward to full, timely, and consistent implementation across jurisdictions, which will improve financial sector resilience. Further action is needed to enhance regulation, supervision, cross-border resolution, and macro-prudential surveillance. Progress is also needed to strengthen balance sheets and market infrastructure, and to reduce risks from systemically important financial institutions and moral hazard, while ensuring a level playing field. We call on the Fund to contribute to this important agenda in collaboration with relevant bodies. We welcome the IMF-FSB progress report on data gaps and encourage further efforts to follow up on its recommendations.

Low-income countries (LICs). The resilience and rapid recovery of many LICs is a positive development. The significant reforms undertaken by these countries in recent years have cushioned their economies during the crisis. Rebuilding policy space is a priority, along with strengthening the capacity to invest efficiently and borrow sustainably in order to meet their growth and development needs. We welcome members' contributions for concessional lending and call for further such support, including from new contributors. The international community needs to redouble its efforts to achieve the MDGs by 2015, including by meeting aid commitments.

IMF reform. We welcome the extensive and ongoing work by the Fund on the review of its governance and mandate that we had called for. The Fund has responded well in adapting to the membership's needs during the crisis. Further action is urgently needed to reinforce the institution's role and effectiveness as a global body for macro-financial surveillance and policy collaboration.

  • Quota and governance reforms. We reemphasize that quota and governance reforms are critical to institutional legitimacy and effectiveness. The Fund is and should remain a quota-based institution. We urge members who have not consented to the 2008 quota and voice reform to do so promptly. We have made progress toward finding common ground on the core reform areas, and we are working actively to resolve outstanding issues. These issues relate to the size of the quota increase and the quota shift, in line with our October 2009 Istanbul communiqué; enhanced voice and representation of emerging markets and developing countries at the IMF's Executive Board; modalities for protecting the voting share of the poorest members; enhanced ministerial engagement and strategic oversight; and an open, transparent, and merit-based process for selecting the heads of the IMF and other IFIs. We call for progress in Board and management accountability, Board effectiveness, and staff diversity. Given the urgency of these issues, we call on the Managing Director to report to the IMFC on progress on quota and governance reforms by the end of October.
  • Surveillance mandate. Fund bilateral and multilateral surveillance must be further strengthened, drawing lessons from the crisis. Stronger and evenhanded surveillance to uncover vulnerabilities in large advanced economies is a priority. Surveillance should also be better focused on financial stability issues and their macroeconomic linkages, and more attentive to cross-border spillovers. Synergies between surveillance tools should also be strengthened. We welcome the decision to make FSAP financial stability assessments mandatory for members with systemic financial sectors as part of surveillance. We call for the 2011 triennial review to consider the effectiveness of the Fund's framework for surveillance, including its rigor, candor, evenhandedness, focus on systemic issues, and ways to improve its traction. We call on members to fulfill their obligations under Article IV of the Articles of Agreement. We look forward to reviewing progress at our next meetings.
  • Financing mandate. Having overhauled its lending facilities early in the crisis, we welcome recent decisions by the Executive Board to further strengthen the Fund's crisis prevention role by refining the Flexible Credit Line and establishing the Precautionary Credit Line. These are important initiatives that should now be assessed over time. Also, we call on the Fund to continue its work on ways to improve its capacity to help members cope with systemic shocks, and to cooperate with other relevant bodies, in particular regional financial arrangements. We look forward to progress reports.
  • Mandate for international monetary stability. While the international monetary system has proved resilient, tensions and vulnerabilities remain as a result of widening global imbalances, continued volatile capital flows, exchange rate movements, and issues related to the supply and accumulation of official reserves. Given that these issues are critically important for the effective operation of the global economy and the stability of the international monetary system, we call on the Fund to deepen its work in these areas, including in-depth studies to help increase the effectiveness of policies to manage capital flows. We look forward to reviewing further analysis and proposals over the next year.

Next IMFC meeting. Our next regular meeting will be held in Washington, D.C. on April 16, 2011. We call on our Deputies to prepare for our discussions in advance.

Annex 6

Communiqués of the Development Committee of the Boards of Governors of the World Bank and IMF, 2010

Washington, DC
April 25, 2010

Development Committee Communiqué

Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries

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 ( 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 (

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.

Washington, DC
October 9, 2010

Development Committee Communiqué

Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries

1. The Development Committee met today, October 9, 2010, in Washington DC.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. We stress the importance of the revival of world trade and investment in underpinning global economic recovery and growth. 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 Investment Funds. We encourage further collaboration with the United Nations Framework Convention on Climate Change.

8. 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.

9. 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 Management Company.

10. 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.

11. 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.

12. The Committee's next meeting is scheduled for April 17, 2011 in Washington, DC.

Annex 7

Operational Highlights and Key Financial Indicators of the IMF for Fiscal Year 2010

The flow of IMF disbursements (purchases) exceeded the flow of repayments (repurchases) in FY2010, continuing the trend of FY2009, when disbursements outstripped repayments for the first time since FY2004. FY2010 saw an increase in purchases and a large decrease in repurchases.

IMF Resource Flows as of April 30
  FY2009 FY2010
  (millions of SDRs)
Purchases 16,363 21,087
Extended Credit Facility (ECF)1 loans 719 1,402
Total disbursements 17,082 22,489
Repurchases 1,833 275
ECF repayments 468 489
Total repurchases and repayments 2,301 764
Note: Numbers may not add due to rounding.
1 Formerly PRGF.

The IMF's outstanding credit continued to grow in FY2010, increasing significantly from FY2009, primarily due to increases in purchases (use by members) of Stand-By Arrangements.

Outstanding Credit by Facility and Policy as of April 30
  FY2009 FY2010
  (millions of SDRs)
Stand-By Arrangements 19,925 40,752
Extended Fund Facility 468 453
Supplemental Reserve Facility
Compensatory and Contingency Financing Facility 33 33
Systemic Transformation Facility
Subtotal, General Resources Account 20,426 41,238
Structural Adjustment Facility Arrangements 9 9
Extended Credit Facility/Exogenous Shocks Facility (ESF) Arrangements1 4,124 5,037
Trust Fund 66 66
Total 24,625 46,350
Note: Numbers may not add due to rounding.
1 Formerly PRGF-ESF Arrangements.

Annex 8

Active IMF Lending Arrangements as of December 31, 2010

Please see the IMF 2010 Annual Report for detailed data regarding the policies and finances of the IMF. All data referenced in this annex can be found in the appendices of the IMF 2010 Annual Report.

IMF Lending Arrangements as of December 31, 2010
Member Date of
Expiration Total
Amount Agreed
      (thousands of SDRs)
Stand-By Arrangements
Angola November 23, 2009 February 22, 2012 858,900 286,300
Antigua and Barbuda June 7, 2010 June 6, 2013 81,000 60,750
Bosnia and Herzegovina July 8, 2009 June 30, 2012 1,014,600 676,400
Dominican Republic November 9, 2009 March 8, 2012 1,094,500 547,250
El Salvador March 17, 2010 March 16, 2013 513,900 513,900
Georgia September 15, 2008 June 14, 2011 747,100 170,000
Greece May 9, 2010 May 8, 2013 26,432,900 17,301,600
Honduras October 1, 2010 March 31, 2012 64,750 0
Iceland November 19, 2008 August 31, 2011 1,400,000 525,000
Iraq February 24, 2010 February 23, 2012 2,376,800 1,604,340
Jamaica February 4, 2010 May 3, 2012 820,500 310,600
Kosovo July 21, 2010 January 20, 2012 92,656 73,896
Latvia, Republic of December 23, 2008 December 22, 2011 1,521,626 539,386
Maldives December 4, 2009 December 3, 2012 49,200 41,000
Pakistan November 24, 2008 September 30, 2011 7,235,900 2,299,865
Romania May 4, 2009 May 3, 2011 11,443,000 1,643,000
Serbia, Republic of January 16, 2009 April 15, 2011 2,619,120 1,298,078
Sri Lanka July 24, 2009 July 23, 2012 1,653,600 826,800
Ukraine July 28, 2010 December 27, 2012 10,000,000 7,750,000
Total     70,020,052 36,468,165
Extended Fund Facility
Armenia, Republic of June 28, 2010 June 27, 2013 133,400 98,400
Ireland December 16, 2010 December 15, 2013 19,465,800 19,465,800
Moldova, Republic of January 29, 2010 January 28, 2013 184,800 144,800
Seychelles December 23, 2009 December 22, 2012 19,800 10,560
Total     19,803,800 19,719,560
Flexible Credit Line    
Colombia May 7, 2010 May 6, 2011 2,322,000 2,322,000
Mexico March 25, 2010 March 24, 2011 31,528,000 31,528,000
Poland, Republic of July 2, 2010 July 1, 2011 13,690,000 13,690,000
Total     47,540,000 47,540,000
Poverty Reduction and Growth Trust
Extended Credit Facility1
Armenia, Republic of June 28, 2010 June 27, 2013 133,400 96,000
Benin June 14, 2010 June 13, 2013 74,280 63,660
Burkina Faso June 14, 2010 June 13, 2013 46,154 32,250
Burundi July 7, 2008 July 6, 2011 46,200 13,200
Comoros September 21, 2009 September 20, 2012 13,573 7,788
Congo, Democratic Republic of December 11, 2009 December 10, 2012 346,450 247,464
Congo, Republic of December 8, 2008 December 7, 2011 8,460 3,626
Côte d'Ivoire March 27, 2009 March 26, 2012 373,980 143,088
Djibouti September 17, 2008 September 16, 2011 12,720 7,380
Gambia, The February 21, 2007 February 20, 2011 24,880 4,665
Ghana July 15, 2009 July 14, 2012 387,450 238,300
Grenada April 18, 2010 April 17, 2013 8,775 6,250
Guinea-Bissau May 7, 2010 May 6, 2013 22,365 12,070
Haiti July 21, 2010 July 20, 2013 40,950 32,760
Lesotho June 2, 2010 June 1, 2013 41,880 34,080
Liberia March 14, 2008 March 13, 2011 239,020 4,440
Malawi February 19, 2010 February 18, 2013 52,050 38,170
Mali May 28, 2008 May 27, 2011 27,990 4,000
Mauritania March 15, 2010 March 14, 2013 77,280 55,200
Moldova, Republic of January 29, 2010 January 28, 2013 184,800 104,800
Nicaragua October 5, 2007 December 4, 2011 78,000 11,100
Niger June 2, 2008 June 1, 2011 23,030 9,870
São Tomé and Principe March 2, 2009 March 1, 2012 2,590 1,850
Sierra Leone July 1, 2010 June 30, 2013 31,110 22,230
Tajikistan, Republic of April 21, 2009 April 20, 2012 104,400 39,135
Togo April 21, 2008 August 31, 2011 95,410 8,800
Yemen, Republic of July 30, 2010 July 29, 2013 243,500 208,710
Zambia June 4, 2008 June 3, 2011 220,095 18,395
Total     2,960,792 1,469,281
Exogenous Shocks Facility
Maldives December 4, 2009 December 3, 2011 8,200 6,150
Total     8,200 6,150
Standby Credit Facility
Honduras October 1, 2010 March 31, 2012 64,750 64,750
Soloman Islands June 2, 2010 December 1, 2011 12,480 6,240
Total     77,230 70,990
Grand total     140,410,074 105,274,146
Note: Numbers may not add due to rounding.
1 Formerly Poverty Reduction and Growth Facility.

Annex 9

Operational Highlights and Key Financial Indicators for the World Bank Group in Fiscal Year 2010

Operational highlights and key financial indicators for World Bank Group associations are summarized in the following tables. IBRD lending commitments to member countries were $44.2 billion in FY2010, up $11.3 billion from $32.9 billion in FY 2009. IDA lending increased to $14.5 billion for 190 projects in FY2010. The IFC committed $12.7 billion in FY2010, an increase of $1.1 billion from FY2009. MIGA issued guarantees worth $1.5 billion in FY2010.

International Bank for Reconstruction and Development
  FY2009 FY2010
  (millions of US dollars)
Administrative expenses 1,441 1,589
Operating income 572 800
Total assets 275,420 283,010
Fiscal-year commitments 32,911 44,197
Gross disbursements 18,564 28,854
Undisbursed loans 51,125 63,574
Principal repayments including prepayments 10,217 11,624
Net disbursements (losses) 8,347 17,230
Equity-to-loans ratio (per cent) 34 29
Sources: The World Bank Group Annual Report (2010) and IRBD financial statements (2010).
International Development Association
  FY2009 FY2010
  (millions of US dollars)
Net income 1,850 (1,077)
Cumulative commitments 207,000 221,900
Fiscal-year commitments 14,041 14,550
Gross disbursements 9,219 11,460
Principal repayments 2,209 2,349
Net disbursements 7,010 9,111
Source: The World Bank Group Annual Report (2010).
International Finance Corporation
  FY2009 FY2010
  (millions of US dollars)
Administrative expenses 582 664
Operating income (loss) (153) 2,285
Total assets 51,483 61,075
Committed portfolio 34,502 38,864
Fiscal-year commitments 10,547 12,664
Number of projects 447 528
Loan and equity investments, net 22,214 25,944
Sources: IFC Annual Report (2010) and IFC financial statements (2010).
Multilateral Investment Guarantee Agency
  FY2009 FY2010
  (millions of US dollars)
Administrative and other expenses 29.8 36.2
Operating income 50.6 33.9
Total assets 1,190 1,255
Statutory underwriting capacity 12,096 12,177
Fiscal-year guarantees issued 1,377 1,464
Number of new projects 20 16
Net exposure 3,966 4,296
Return on operating capital, before provisions (per cent) 3.2% 1.4%
Source: MIGA Annual Report (2010).

Annex 10

IBRD Loans and IDA Credits—Summary Statistics for Fiscal Year 2010
  (millions of US dollars)
By Region  
Africa 4,258.1 7,178.8 11,436.9
East Asia and Pacific 5,864.7 1,652.0 7,516.7
Europe and Central Asia 10,196.0 620.2 10,816.2
Latin America and the Caribbean 13,667.3 239.6 13,906.9
Middle East and North Africa 3,522.6 213.9 3,736.5
South Asia 6,688.7 4,645.2 11,333.9
Total 44,197.4 14,549.7 58,747.11
By Theme      
Economic Management     3,949.9
Environmental and Natural Resources Management     4,337.3
Financial and Private Sector Development     17,726.0
Human Development     8,421.3
Public Sector Governance     5,750.4
Rule of Law     207.1
Rural Development     5,003.8
Social Development, Gender and Inclusion     952.3
Social Protection and Risk Management     5,006.3
Trade and Integration     1,818.3
Urban Development     5,574.5
Total     58,747.1
By Sector  
Agriculture, Fishing, and Forestry     2,618.3
Education     4,944.5
Energy and Mining     9,925.2
Finance     9,136.5
Health and Other Social Services     6,792.0
Industry and Trade     1,251.3
Information and Communication     146.3
Law and Justice and Public Administration     10,828.2
Transportation     9,001.9
Water, Sanitation, and Flood Protection     4,102.8
Total     58,747.1
Of which IBRD     44,197.4
Of which IDA     14,549.7
Note: Numbers may not add to totals due to rounding.
1 Includes a HIPC grant of $45.5 million for Côte d'Ivoire.
Source: The World Bank Group Annual Report (2010).

Annex 11

Projects Approved for IBRD and IDA Assistance in Fiscal Year 2010
  IBRD IDA Total

Region/country No. Amount No. Amount No. Amount
  (millions of US dollars)
Africa (regional)     6 694.9 6 694.9
Angola     2 152.5 2 152.5
Benin     3 67.8 3 67.8
Botswana 1 379.1     1 379.1
Burkina Faso     2 130.0 2 130.0
Burundi     3 87.0 3 87.0
Cameroon     1 30.0 1 30.0
Cape Verde     2 19.5 2 19.5
Chad     1 20.0 1 20.0
Comoros     2 8.3 2 8.3
Congo, Democratic Republic of     4 460.0 4 460.0
Congo, Republic of     1 25.5 1 25.5
Côte d'Ivoire     3 155.0 3 155.0
Ethiopia     2 890.0 2 890.0
Gambia, The     2 10.8 2 10.8
Ghana     6 313.3 6 313.3
Guinea-Bissau     2 11.0 2 11.0
Kenya     4 590.0 4 590.0
Lesotho     2 30.0 2 30.0
Liberia     2 26.0 2 26.0
Malawi     4 158.0 4 158.0
Mali     2 140.5 2 140.5
Mauritania     1 25.5 1 25.5
Mauritius 3 120.0     3 120.0
Mozambique     4 260.4 4 260.4
Niger     1 10.0 1 10.0
Nigeria     3 890.0 3 890.0
Rwanda     5 233.8 5 233.8
São Tomé and Príncipe     1 4.1 1 4.1
Senegal     5 186.0 5 186.0
Seychelles 1 9.0     1 9.0
Sierra Leone     4 61.0 4 61.0
South Africa 1 3,750.0     1 3,750.0
Tanzania     7 928.0 7 928.0
Togo     2 25.0 2 25.0
Uganda     3 440.0 3 440.0
Zambia     2 95.0 2 95.0
Total 6   4,258.1 94 7,178.8 100 11,436.9
East Asia and Pacific            
Cambodia     1 5.0 1 5.0
China 14 1,414.0     14 1,414.0
Indonesia 10 2,986.4     10 2,986.4
Lao People's Democratic Republic     8 124.3 8 124.3
Mongolia     3 34.0 3 34.0
Papua New Guinea     1 25.0 1 25.0
Philippines 2 685.0     2 685.0
Samoa     1 23.0 1 23.0
Solomon Islands     2 6.5 2 6.5
Thailand 1 79.3     1 79.3
Timor-Leste     1 5.0 1 5.0
Vietnam 2 700.0 9 1,429.2 11 2,129.2
Total 29 5,864.7 26 1,652.0 55 7,516.7
South Asia            
Afghanistan     6 197.0 6 197.0
Bangladesh     7 828.0 7 828.0
Bhutan     1 12.0 1 12.0
India 13 6,688.7 10 2,557.6 23 9,266.3
Maldives     1 13.7 1 13.7
Nepal     3 351.9 3 351.9
Pakistan     2 300.0 2 300.0
Sri Lanka     7 365.0 7 365.0
Total 13 6,688.7 37 4,645.2 50 11,333.9
Europe and Central Asia            
Armenia 5 87.6 1 60.0 6 147.6
Azerbaijan 1 171.6   70.0 1 241.6
Belarus 2 242.5     2 242.5
Bosnia and Herzegovina 3 150.0 1 81.0 4 231.0
Bulgaria 1 118.7     1 118.7
Croatia 3 474.3     3 474.3
Georgia 3 205.0 1 85.0 4 290.0
Hungary 1 1,413.2     1 1,413.2
Kazakhstan 3 1,065.0     3 1,065.0
Kosovo     2 20.3 2 20.3
Kyrgyz Republic     2 37.0 2 37.0
Latvia 2 426.6     2 426.6
Macedonia, former Yugoslav Republic of 2 42.1     2 42.1
Moldova     1 69.0 1 69.0
Montenegro 1 7.2     1 7.2
Poland 1 1,331.3     1 1,331.3
Romania 1 423.0     1 423.0
Serbia 3 588.0     3 588.0
Tajikistan     2 52.4 2 52.4
Turkey 5 2,990.0     5 2,990.0
Ukraine 1 460.0     1 460.0
Uzbekistan     3 145.5 3 145.5
Total 38 10,196.0 13 620.2 51 10,816.2
Latin America and the Caribbean            
Argentina 4 634.0     4 634.0
Brazil 18 3,744.6     18 3,744.6
Chile 1 3.0     1 3.0
Colombia 7 1,172.8     7 1,172.8
Dominican Republic 5 360.5     5 360.5
El Salvador 4 250.0     4 250.0
Grenada 1 4.5 1 3.5 2 8.0
Guatemala 2 464.5     2 464.5
Haiti     6 121.5 6 121.5
Honduras     1 40.0 1 40.0
Jamaica 3 231.0     3 231.0
Mexico 9 6,386.5     9 6,386.5
Nicaragua     3 64.3 3 64.3
OECS countries     1 2.3 1 2.3
Panama 1 40.0     1 40.0
Peru 4 360.0     4 360.0
St. Lucia 1 4.0 1 8.0 2 12.0
Uruguay 1 29.9     1 29.9
Total 61 13,667.3 13 239.6 74 13,906.9
Middle East and North Africa            
Djibouti     2 8.9 2 8.9
Egypt 8 2,155.0     8 2,155.0
Iraq 1 250.0     1 250.0
Jordan 1 300.0     1 300.0
Morocco 6 729.5     6 729.5
Tunisia 2 88.1     2 88.1
Yemen     7 205.0 7 205.0
Total 18 3,522.6 9 213.9 27 3,736.5
Grand total 164 44,197.4 190 14,549.7 354 58,747.1
Note: Figures include guarantees. Supplemental and additional financing operations (except for projects scaled up through additional financing) are not counted as separate lending operations, although they are included in the amount. Joint IBRD-IDA operations are counted only once as IBRD operations. OECS = Organization of Eastern Caribbean States. A blank space equals zero.

Annex 12

World Bank Group Procurement From Canada

Disbursements by IBRD and IDA Borrowers:
Goods and Services From Canada
By World Bank Fiscal Year (July 1 – June 30) (millions of US dollars)
2006–07 51.9
2007–08 58.3
2008–09 46.2
2009–10 62.0
Source: World Bank, “Summary and Detail Borrower Procurement Reports” (2010).
Disbursements by IBRD and IDA Borrowers:
Suppliers of Goods and Services From Canada
Supplier Sector Category ID Amount
        (US dollars)
ROSE BALOU Agriculture Consultant Services P001194 29,246
RICHARD WEGER Agriculture Consultant Services P090887 47,080
ADA CONSULTANTS Agriculture Consultant Services P083609 195,754
MRS. VIVIAN VILICH Agriculture Consultant Services P101213 26,207
ÉDUCATION INTERNATIONALE Education Consultant Services P064557 309,588
DAVID COMERFORD Education Consultant Services P100534 154,000
THOMAS GOUGEON Education Consultant Services P102174 19,433
SARAH MARIE MURRAY Education Consultant Services P110571 38,500
ÉDUCATION INTERNATIONALE Education Consultant Services P064557 1,693,493
SNC-LAVALIN Energy & mining Civil Works P064844 4,259,738
RSW INTERNATIONAL Energy & mining Consultant Services P116745 1,896,089
BOUCIF BELHACHEMI Energy & mining Consultant Services P098531 50,710
AECOM TECSULT INC Energy & mining Consultant Services P104456 497,557
TECSULT/AECOM Energy & mining Consultant Services P094916 4,946,872
MCKINSEY AND COMPANY Energy & mining Consultant Services P108768 199,000
KCM ENGINEERING LTD Energy & mining Consultant Services P002797 24,180
KEN BECK LEE Energy & mining Consultant Services P106832 60,460
HATCH LIMITED Energy & mining Consultant Services P002797 571,961
SGGROUP Finance Consultant Services P094704 195,797
ANDY MACDONALD Finance Consultant Services P085124 43,000
INSURANCE TECHNOLOGY GROUP ITG Finance Consultant Services P108080 54,750
DR. JEAN PHILIPPE SAC-EPEE Health & social serv Consultant Services P103158 28,700
MAGDALENA JANUS Health & social serv Consultant Services P093096 34,084
CHARLES A. JEANNERET Health & social serv Consultant Services P077326 23,100
ACCESSTEC INC. Health & social serv Goods P076799 550,000
ROGER CHRISTEN Industry and trade Consultant Services P112975 282,774
JORGE EDUARDO FILMUS Industry and trade Consultant Services P106752 10,000
POUNA EMMANUEL Industry and trade Consultant Services P112975 20,858
GLOBESCAN Info & communication Consultant Services P110469 30,000
STATISTICS CANADA Public admin, Law Consultant Services P092429 27,848
ANNICK LACHANCE Public admin, Law Consultant Services P105393 18,000
SERGE A. BOUCHARD Public admin, Law Consultant Services P104041 259,770
MANMOHAN RUPRAI Public admin, Law Consultant Services P110760 88,400
IDEA INTERNATIONAL Public admin, Law Consultant Services P117382 289,900
IAN MCLELLAN Public admin, Law Consultant Services P111849 33,749
TERESA PETROCCO Public admin, Law Consultant Services P104743 80,100
WESTERNWORLDCONSULTANTS CONSULTING&TRA Public admin, Law Consultant Services P076234 226,991
LOUISE OUIMET Public admin, Law Consultant Services P104041 81,437
LOUISE OUIMET Public admin, Law Consultant Services P104041 248,055
LIVINGSTON ARMYTAGE Public admin, Law Consultant Services P099201 204,811
ROBERT VARDY Public admin, Law Consultant Services P092484 426,043
SAMSON PIERRE Public admin, Law Consultant Services P073507 49,382
G&M, GROUPE CONSEILS CANADIEN INC. Public admin, Law Consultant Services P107355 64,825
GERARD VERGER Public admin, Law Consultant Services P090265 66,426
ANDRÉ CÔTÉ Public admin, Law Consultant Services P090265 146,002
CRC SOGEMA Public admin, Law Consultant Services P078627 660,302
CRC SOGEMA Public admin, Law Consultant Services P107851 1,000,000
SNC/LAVALIN GROUP INC. Public admin, Law Consultant Services P090159 288,675
FREE BALANCE INC. Public admin, Law Goods P109775 1,494,356
FREE BALANCE INC AND TELECOMMUNICATION Public admin, Law Goods P071063 2,590,063
CRC SOGEMA Public admin, Law Goods P107248 2,122,670
SNC-LAVALIN INTERNATIONAL INC. Transportation Consultant Services P095523 547,375
ROMAIN BRIARD Transportation Consultant Services P103343 97,938
EXPERCO INTERNATIONAL Transportation Consultant Services P095523 750,450
SNC-LAVALIN INTERNATIONAL INC Transportation Consultant Services P099270 7,164,669
CPCS TRANSCOM INT. LIMITED Transportation Consultant Services P113845 476,798
ABD EL HALIM OMAR Transportation Consultant Services P094488 100,000
MMM GROUP LIMITED Transportation Consultant Services P117152 1,523,441
MMM GROUP LTD. Transportation Consultant Services P095977 9,706,853
LEA INTERNATIONAL LTD. JOINT VENTURE Transportation Consultant Services P091077 1,001,892
SENES CONSULTANTS LIMITED Water/sanit/fld prot Consultant Services P108078 260,103
M/S SNC-LAVALIN INTERNATIONAL INC. Water/sanit/fld prot Consultant Services P040712 6,838,797
SNC-LAVALIN INTERNATIONAL INC. Water/sanit/fld prot Consultant Services P116595 3,777,023
SNC-LAVALIN INTERNATIONAL INC. Water/sanit/fld prot Consultant Services P093826 512,547
SNC-LAVALIN INTERNATIONAL INC. Water/sanit/fld prot Consultant Services P093826 731,045
HYDROSULT INC. Water/sanit/fld prot Consultant Services P093132 861,342
TECSULT-AECOM/AFRICONSULT Water/sanit/fld prot Consultant Services P093826 320,176
NREM INTERNATIONAL INC. Water/sanit/fld prot Consultant Services P086508 371,174
RUSSELL BOALS Water/sanit/fld prot Consultant Services P104806 32,750
ROCHE Water/sanit/fld prot Consultant Services P110020 213,918

Annex 13

World Bank Group Borrowing in Canada

There was no World Bank Group borrowing in Canada in 2010.

On July 22, 2009, the Bank issued, via the Royal Bank of Canada, a C$121-million capped floating rate bond due October 31, 2012. This was the only issue in Canada since November 20, 2007, when the Bank issued a C$850-million 4.30-per-cent 5-year maturity global bond via TD Securities and HSBC.

Annex 14

Statement Submitted by the Canadian Executive Director on the World Bank's Reproductive Health Action Plan: 2010–2015 on May 11, 2010

We would like to commend Staff and Management on the preparation of this Reproductive Health Action Plan and on the efforts to ensure due attention is given to reproductive health issues in Bank investments, in analytical work and policy dialogue with partner countries, and in Bank engagement with donor partners and institutions. We are encouraged by the action plan's focus on meaningfully integrating reproductive health issues within a health systems based approach. It is clear that solutions to improving reproductive health outcomes readily exist and that such solutions are well recognized and accepted -- the science and practice in this field are well established. Outstanding results have been achieved where commitment has existed, where adequate resources have been brought to the effort and where implementation has been effective. There is little excuse for not meaningfully improving results and making significant progress toward achieving millennium development goals objectives in this area.

Along these lines, it will be important, not only that the Bank adopt the Reproductive Health Action Plan, but that the regional Vice-Presidencies effectively implement the Action Plan in their respective regions and member countries. The Human Development Network has commendably identified the issues, justified the imperative for action and provided a road map for achieving results. It is now up to the programming units of the Bank, the regions and country programs, to seriously commit to implementing this Action Plan, particularly in Africa. We are encouraged by the outline provided for a Strategic Plan for Population and Reproductive Health in Africa. We would like to encourage finalization of this plan and the preparation of similar plans in other regions. We would also like to encourage the inclusion in such regional plans of measurable and quantifiable results indicators so that progress can be tracked and Staff and Management held accountable for the implementation of regional reproductive health action plans and the achievement of results. It would be useful to be able to track and ensure commitment to the implementation of such action plans.

We appreciate that efforts to improve reproductive health outcomes will depend to a great extent on country authorities and their level of commitment, as is the case in any sector. Without wanting to push a supply-driven approach, we would nonetheless, like to encourage a pro-active approach on the part of the World Bank Group in advocating with country authorities and other donor partners the necessity of fully integrating and embedding reproductive health issues and efforts to improve gender equality in country health systems strengthening efforts. As such, we would encourage considerable attention to reproductive health in Analytic and Advisory Activities and Economic and Sector Work activities and would like to see targets for such work included in regional reproductive health action plans. We also recognize that reproductive health outcomes are not only women's issues, and that male behaviour, driven and influenced by a variety of social and cultural norms can significantly impact reproductive health outcomes. We would encourage the Bank in its analytical work, advocacy efforts and policy dialogue to not shy away from addressing such issues as important determinants of reproductive health outcomes.

The upcoming World Development Report on Gender will provide a singular opportunity for further highlighting reproductive health issues, and their intrinsic link to gender equality and the status of women, and in forging consensus and fostering coherence on ways forward. We would strongly encourage incorporation of reproductive health issues throughout the report where appropriate so that the important links between reproductive health issues and broader gender and socio-economic issues are made explicit. It might also be useful to have a stand-alone chapter/section on reproductive health in order to give it greater prominence. Also, as noted above, we would encourage an approach to reproductive health issues in the World Development Report on Gender that is not only rooted in women's health issues, but that also squarely and forcefully addresses male behavioural influences on reproductive health outcomes and the important role of promoting equality between men and women.

In sum, we see this as an important Action Plan, one that could meaningfully address shortcomings in achieving reproductive health related millennium development goals, but recognize that it will require effective implementation. In that regard, we expect the regions to follow through with effective implementation plans and to hold themselves accountable in meeting clearly articulated and measurable results.

Annex 15

Canadian International Development Agency Countries of Focus
Country of Focus Amount Disbursed
by IDA (US$)
IDA Status IDA Member
Ethiopia 890.0 Regular Yes
Ghana 313.3 Regular Yes
Mali 140.5 Regular Yes
Mozambique 260.4 Regular Yes
Senegal 186.0 Regular Yes
Tanzania 928.0 Regular Yes
Indonesia 0.0 Graduated No
Vietnam 1,429.2 Blend country Yes
Ukraine 0.0   No
Colombia 0.0 Graduated No
Haiti 121.5 Regular Yes
Honduras 40.0 Hardened borrowing terms Yes
Peru  No
Afghanistan 197.0 Regular Yes
Bangladesh 828.0 Regular Yes
Pakistan 300.0 Blend country Yes
Caribbean Regional Program    
Guyana 0.0 Hardened borrowing terms Yes
Dominica 0.0 Blend, small island economy exemption Yes
Granada 3.5 Blend, small island economy exemption Yes
Saint Lucia 8 Blend, small island economy exemption Yes
Saint Vincent 0.0 Blend, small island economy exemption Yes
Bolivia Hardened borrowing terms, blend country Yes
West Bank and Gaza 0.0  – No
Sudan 0.0  Inactive country Yes

1 According to Ireland's Budget 2011 published in December 2010, Ireland's budget deficit for 2010 was estimated to be 11.6 per cent. See

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