Hon Deputy Speaker, hon members, hon M B Skosana, the call for the transformation of the Bretton Woods institutions refers directly to the World Bank Group and the International Monetary Fund, the IMF, which were established as specialised agencies of the United Nations in 1944.
The reforms that South Africa is calling for relate mainly to the following areas. Firstly, they relate to the review of the quota shares. This call is aimed at realigning the quota shares held by countries to reflect current global realities. The realignment will result in countries with higher GDPs having more shares, thus changing their relative weight in the institutions.
Secondly, the reforms relate to improving governance systems to enhance the voice of developing countries. The aim in this regard is to increase the representation of developing countries on the boards and to increase diversity at management and staff levels.
Thirdly, the transformation we are calling for is likely to improve the financial and economic conditions of developing countries. Already, some reforms were agreed to at the leaders' summit in Pittsburgh in September 2009 regarding the quota shifts of 5% at the IMF and 3% at the World Bank. A quota shift to developing countries gives us, as a group, more voting power and additional resources to draw from as each country's voting power and access to financing is determined by its quota share.
We have also secured an agreement on increased representation in decision- making bodies such as the IMF's International Monetary and Financial Committee and the World Bank's Development Committee. This gives developing countries an opportunity to exercise greater influence on global, economic, financial and development governance.
No member country of the World Bank or the IMF, including South Africa, is required to change its economic policies and systems as a result of transformation at these institutions. The planned reforms will impact on South Africa's quota shares, which are expected to be realigned accordingly as underrepresented countries get more shares. South Africa will, however, have an increased voice as reforms are implemented. I thank you. [Applause.]