Too Soft, Too Open, Too Democratic?

Voting in the World Bank and IMF is far from democratic – votes are determined by the amount each state contributes to the coffers, leaving poorer countries with next to no say in decisions. This undemocratic system is in line with the original intent of the Bank and IMF: they were to be the lenders, representing creditor nations. No 'bank' allows the borrower to determine policy. But now there is a slow shift away from this logic. Debtor nations are demanding greater representation and it seems they might get it, for "ownership" is the catch phrase of the day. Even the WTO, in the face of the failure of the Cancun talks, is looking to renegotiate its leadership to allow developing nations a greater share of power. Not everyone – from Argentina's president to private US creditors – is happy about a democratization movement in the world's finance and trade organizations. "Ownership" for developing nations is a hard sell to traditional economic thinkers as well as to the politicians whose domestic support is dependent on their antagonistic relationship with the IMF. – YaleGlobal