WASHINGTON (AFP) - Developing countries chastized the IMF and the World Bank for what they said had been a failure to give them greater decision-making power in the two institutions and urged that the next World Bank president be chosen regardless of nationality.
The Group of 24 developing country ministers also said the US current account deficit drained vital funds away from poorer nations, describing the shortfall as "a misallocation of resources."
Their statement came ahead of the annual meeting opening here Saturday of International Monetary Fund and World Bank policymakers.
The ministers voiced their "strong disappointment and concern that, after two and a half years, no progress has been made on the issues of increasing basic votes and revising the quotas of developing countries in the IMF."
They warned that "the current under-representation of developing countries in the decision-making process undermines the credibility and legitimacy (of the fund and the bank) and puts their relevance into question."
A country`s voting power, as well as its financial commitment, in the IMF is determined by its economic position relative to other members.
While quota calculations have recently been updated, according to the G24 statement, they "continue to understate the role of developing countries in the world economy."
Demands by the developing world for greater clout within the IMF and the World Bank are likely to intensify next June when the current term of World Bank President James Wolfensohn comes to an end.
The G24 ministers said that if Wolfensohn does not seek another five-year term, there should be "a transparent selection process (to choose a successor), with a view to attracting the best candidates regardless of nationality."
By tradition, the head of the World Bank is reserved for an American while the job of IMF managing director goes to a European.
Elsewhere in their statement the ministers described the US current account deficit, a broad measure of foreign trade, as "a serious short- and medium-term challenge for the international economy."
The shortfall is largely financed by foreign capital inflows into the United States, which according to G24 amounts to a diversion of "a substantial portion" of world savings away from the developing world.
The ministers in addition expressed concern over continuing violence in the Israeli-occupied Palestinian territories and the construction by Israel of a wall in the West Bank, which they said harmed the social and economic interests of the Palestinians.
They appealed to the IMF and the bank therefore to increase their assistance to the Palestinian people.