Thank you, Chair, Ajay, and everyone at the Bank.
I have set out the UK’s priorities for the Bank in my written statement – including conflict, climate change, raising private capital and creating jobs. Having a real impact on these is essential for our credibility.
But today I want to focus on another issue vital to this institution’s legitimacy: its governance. Twenty four low-income countries – with just 1.4% of shareholding. The 6 largest shareholders – with 40%.
If this Bank were a country, it would be the most unequal in the world. That is not right, and not sound. The world is changing – the population of sub-Saharan Africa set to double over the next 25 years.
Yet our governance still reflects the middle of the last century, threatening to keep us stuck in the past – while the rest of the world moves on.
So, the Shareholding Review matters. Yes – it is hard. But we need to accept that it is essential. This is when leadership really matters.
There are two things we must do now.
One – we know that when countries decide their own path. They have the best chance of success. So can we give more voting power to those countries that rely the most on us – especially low-income countries – so they have a greater stake in decisions that affect them?
Can we reconfigure this Committee to the same end? I want to see concrete proposals in this area by the Spring Meetings.
And two – we must think long-term. How do we transform the Bank’s governance to reflect the world of tomorrow? Can we find ways to approach the shareholding question differently that help us to see past immediate geopolitics and safeguard the Bank’s enduring legitimacy in the world?
Finding the right answers may well take us beyond this Review – but that is why this important work cannot wait.
I believe that is our responsibility as Governors. Ensuring we take the necessary steps to make this Bank the partner of choice – not a partner of necessity. One that is trusted – not tolerated.
And show the world how committed we are to building not just a better Bank but a fairer and more effective Bank as well.
Thank you.
