India Sunday called for the
implementation of a three-point action plan, including a
substantial rise in lending by the World Bank, as outlined by
leaders of G-20 nations at its London Summit early this month
to fight the global recession.
"We need to consider and act on the decisions of the
G-20 leaders," said Ashok Chawla, Secretary, Department of
Economic Affairs, addressing the Spring Meeting of the World
Bank.
The G-20 meeting had emphasised on a three-point
action plan. Prominent among them include substantial increase
in lending, review of the Bank's lending capacity and enabling
large developing countries to access the required levels of
finance through increase lending limits.
"All the three issues are important and we need to
direct the Bank to start work on all fronts," he said.

Raising the capital base - either through a General
Capital Increase or a Special Capital Increase - of the Bank
is an important measure which should be examined seriously,
Chawla said, adding it has an immediate impact in relaxing
constraints.
"The right time for expanding the capital base of the
Bank and the IFC is now when the entire world is focused on
the crisis and its impact on the poor and the vulnerable. We
should not miss this opportunity," he said.
Referring to agreement reached at last year's meeting
of the World Bank on "Voice and Representation" reforms, the
DEA Secretary said progress with regard to shareholding review
is much slower.
"A timetable was agreed in the Annual Meeting
according to which the task of reviewing the specific
development mandate of the Bank vis-a-vis the Fund and the
possible implications for realignment of IBRD shareholding,
and setting out the principles for shareholding at IBRD,
should have been completed by now," he argued.
Referring to the London Communique of the G-20 summit
in this regard, Chawla said: "We strongly believe that the
World Bank should heed the call of these leaders and work on
an accelerated timetable for completing the shareholding
review."
It is necessary that the Bank begins work urgently on
the process of working out options for realignment immediately
if the member countries are to meet the accelerated deadline
of Spring 2010, he argued.