World Bank, IMF work for recovery, but cracks emerge

China, which has led the nascent rebound, warned that it has not yet seen its own recovery take root and will keep in place its massive economic stimulus for the time being.

“We are seeing more positive signs and an upward trend in the Chinese economy. However, we are also soberly aware that the economic rebound is yet to be stable, firm, and balanced,” Chinese Finance Minister Xie Xuren said.

The finance chiefs were also to tackle reform of the voting power in the two institutions to better reflect the growing weight of the emerging market and developing countries in the global economy.

Meanwhile, the United Nations called for a new global reserve currency to end dollar supremacy which has allowed the United States to build a huge trade deficit that has helped foster the global imbalances that stoked the crisis.

“Important progress in managing imbalances can be made by reducing the reserve currency country's 'privilege' to run external deficits in order to provide international liquidity,” said Sha Zukang, U.N. undersecretary-general for economic and social affairs.

The Chinese U.N. official called for “greater use of a truly global reserve currency, such as the IMF's special drawing rights (SDRs),” the fund's reserve asset, would benefit global development.

The delegates are to consider a shift of power of at least 5.0 percent from over-represented countries to under-represented countries in the IMF, and a similar transfer of at least 3.0 percent at the World Bank.

“This will enhance our legitimacy,” Strauss-Kahn said.

World Bank president Robert Zoellick urged members to go beyond the reform already supported to give developing countries at least 47 percent of the voting shares of the institution, and raise it to 50 percent.

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