News
South Africa and Africa pushing for more World Bank, IMF reform
When it comes to questions of transparency and whether choices are based on merit, “I think we’re going to find that the process falls short,” he said.
“There’s a lot more reforms to come,” he said, calling the World Bank and the IMF institutions “that are supposed to be serving the world’s poor.”
He said among reforms he’ll be pushing for is more African representation on the International Monetary Fund (IMF) board. He hoped to persuade Europe to give up seats.
Gordhan heads to Washington this week for a meeting of G-20 finance ministers and central bank governors. Monday, he said the key question at that meeting is “whether we are any closer to having definitive answers, not temporary answers, on the euro zone crisis.”
He said there is concern whether the IMF has adequate resources to help Europe, and whether Europe itself is doing enough to keep the crisis from spreading.
“The traditional pool of growth is not operational now, nor will it be for a significant period,” he said.
South Africa’s own efforts to increase growth and create jobs are being hurt by the global downturn.
Gordhan said Monday unemployment in South Africa was likely to remain at a quarter of the work force for the next decade. Gordhan reiterated his pessimism that his government would meet its goal of creating 5 million jobs by 2020.
