Finance Secretary Cesar Purisima called for greater voice and representation of developing countries (DCs) in the institutions established out of Bretton Woods, amid the financial challenges that the world is currently facing.
In a statement at the 2013 World Bank-International Monetary Fund Annual Meetings, Purisima said that the global economy is facing the most imminent threat today—the danger that the United States economy will go into default.
“The IMF [International Monetary Fund] itself has warned of the dangers of the United States failing to raise its debt ceiling to accommodate necessary borrowing—skyrocketing interest rates, carnage in US equities, and exploding volatility in the foreign exchange markets,” he said.
Purisima noted that “serious adverse repercussions” are currently being felt in the international financial markets because of the prolonged political impasse in the US Congress.
“Such are the ramifications that come with being the world’s most important economy—the actions of the US extend far beyond its own economy in our world of irreversibly increasing connectivity,” he said.
Purisima added that the crisis in Washington is a moment that should call to the mission of the World Bank Group as well as to the IMF, and to the other institutions established out of Bretton Woods.
“We now live in a world where greater consultative leadership is demanded to guide countries in making domestic decisions of global consequence,” he said.
“It is in this breath that I strongly call for the review of the institutional foundations of the Bretton Woods institutions to provide greater voice and representation for the majority of its members, the developing countries,” Purisima added.
The Cabinet official said that institutions must be strengthened to bring in the voices of the world’s emerging economies to ensure that the majority of the world’s population has a say in policies that shape their lives from miles away.
Mayvelin U. Caraballo