The annual conference of the World Bank and International Monetary Fund where India was represented by Finance Minister P Chidambaram, ended in Washington with no consensus among developing countries on three vital issues, including representation in the world body and enhanced aid.
IMF managing director Rodrigo de Rato and World Bank president James Wolfensohn told a press conference that, "there is no consensus yet on three issues of vital importance to developing countries".
The issues include increasing the number of representatives from the developing countries in the management of the IMF and World Bank, with the present power structure dating back to the end of World War II before developing countries became important actors on the international scene, substantial increase in aid and trade issues.
"All these issues," Wolfensohn said, "require political decisions, meaning that unless the developed countries agree, there can be no consensus leading to action."
He hoped that the consensus will develop or begin to develop by the time the April session of the International Monetary and Finance Committee and Development Committee starts.
The number of seats for different groups and their quota or shareholding are decided in the IMF, and the formula is followed by the World Bank, he said.
On another issue of aid to developing countries, namely the British Chancellor of exchequer Gordon Brown's proposal for an International Financing Facility to supplement the aid the developing countries would otherwise get, Wolfensohn said in a few weeks there will be an IFF issue in relation to it.
"That, he said, will prove the concept and then it will be a question of how many people would like to join us."
Speaking at the meeting on Sunday, Chidambaram had urged the international financial institutions to step up lending to infrastructure "in a big way" and stressed the need to increase aid to developing nations for achieving the Millennium Development Goals.
Indian government officials stated India needs $150 billion during the next ten years for building an adequate infrastructure.
On issues like increase in aid, Rato said there have to be very fruitful discussions both formally and informally. He hoped that the discussions will bring about a consensus.
The issue of greater representation and more shareholding for developing countries, he said, is a very important issue that affects the legitimacy of the institution. It has to be addressed by the shareholders. There is need for a political consensus.
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