Finance minister Enoch Godongwana cautions on wider World Bank mandate

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Widening the World Bank’s mandate risks shifting the multilateral lender’s focus away from helping poor nations reduce poverty and accelerate development, finance minister Enoch Godongwana said.

The global development lender issued an “evolution road map” in December that sets out proposals to broaden its objectives, review its operating model and enhance its financial capacity. The planned reforms, backed by US Treasury secretary Janet Yellen, are aimed at focusing more on combating climate change.

“The key question which is emerging, which I’ve raised with the secretary, is: careful about shifting the mandate of the World Bank so that whatever additional mandate is being taken does not avert its focus on poverty reduction” and the UN's Sustainable Development Goals, he said in an interview with Bloomberg Television’s Haslinda Amin in Bengaluru, India, on Saturday. “All of those things must remain in place.

Godongwana is in Bengaluru for a meeting of finance ministers and central bank governors from the Group of 20 rich countries. The bank and the International Monetary Fund also held a sovereign debt round-table to discuss bottlenecks that have prevented the quick restructuring of fragile nations’ debt.

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It would be nice if the leaders of developing countries would focus on genuine poverty reduction instead if selfenrichment.

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