Parliament has adopted the report of its Finance Committee backing Ghana’s efforts to enhance her participation and voting powers with the World Bank Group.
When passed by Parliament, the resolution will allow Ghana to subscribe to 677 additional shares of the Capital stock of the International Bank for Reconstruction and Development (IBRD) of the World Bank Group (WBG), which will enhance the country’s voice in the multilateral lending institution.
When the resolution is passed, Ghana will be required to pay a total of US$81.669 million out of which US$78.31 million is callable (installments paid on demand). An initial US$3.358 million will be paid upfront.
The Chairman of the Finance Committee, Mr James Klutse Avedzi, who moved the motion for the adoption of the report, said the distribution of the new shares was expected to enhance the voice and participation of developing and countries in transition by increasing their combined voting powers from 42.6 per cent to 47.19 per cent, reducing that of the developed countries from 57.4 per cent to 52.81 per cent.
He explained that shares allocation to member countries was determined by economic rating and contributions of the member countries to the International Development Association (IDA).
“Ghana was, therefore, allocated a total of 677 shares comprising 213 capital shares increase and 464 general capital shares,” he stated.
The WBG is currently pursuing a policy to enhance the voice and participation of developing countries and countries in transition, when the governments of IBRD agreed at the 2010 Spring meeting to transfer voting powers from developed countries to the developing ones.
Consequently, in March 2011, the government approved an increase of the bank’s total capital by 484,102 shares at US$120,635 per share aimed at increasing the bank’s total capital by US$54.9 billion.
Mr Avedzi said the consideration for the shares had been fully incorporated into the 2016 budget.
Consensus
Member of Parliament for Sekondi, Papa Owusu-Ankomah, seconding the motion to adopt the report said the country could have declined to accept the offer but “when you have the opportunity to increase your subscription and thereby increase your voice in terms of voting, then I believe you have to take advantage of it”.
He said this was also a recognition and acknowledgement by the world body on Ghana’s active participation in its affairs.
The Member of Parliament, however, advised government that even in increasing its subscription, it should also endeavour to get Ghanaian citizens who are in the World Bank and position them so that they could take up higher positions and influence decisions.
“This is something that should be a policy of government when it comes to all international organisations,” he said. —GB