Let merit dictate IMF, World Bank heads, not race

As an integral part of the continent South Africa is promoting Africa as a new node of global economic growth and not as a permanent recipient of aid only, President Jacob Zuma told an Investec asset management conference.

He says Africa must not be viewed only as an exporter of raw materials, with no possibility to beneficiate such resources in a way that would enhance manufacturing capacity, create jobs and develop skills.

"We want to be seen as a development partner, as a partner to do business with and to work with to transform international power relations. We believe we are making progress in some way in our participation in the G20," Zuma says.

"We celebrate the fact that through our work and contribution, the World Bank recently adopted reforms that have shifted shareholding in the organization in favour of developing countries, which now contribute a much larger share to global economic growth and trade.

"It has also established an additional Chair for Africa on the Board of the Bank. We continue to push, as we did in the Toronto Summit, for the IMF to speedily implement similar reforms by the time of the Seoul Summit in November this year," Zuma says.

He says South Africa continues to advocate for a change in the manner in which the heads of both the IMF and the World Bank are appointed through a fair, transparent and open process that pays no regard to the nationality of candidates.

"The recent financial and wider economic crisis from which the global economy is just recovering came about, in large measure, due to lapses and excesses in the financial sector internationally. Consequently, South Africa is a strong advocate for the strengthening of global financial supervision and regulation," Zuma says.

He says South Africa is of the view that a one-size-fits-all approach would not be appropriate as some countries, including Canada, Australia as well South Africa had done well in regulating their financial sectors.

"We further hold the view that where Governments have had to bail out their banks and thus need to commit their financial institutions to share that burden by introducing a levy or financial transactions tax, this should not be imposed to all jurisdictions even where there may not be need to do so.We call for national discretion in this regard," says Zuma.

"Having emerged from the world economic crisis, we are now advocating the adoption of a global framework for strong, balanced and sustainable economic growth. Our view on the framework is that must not just take us back to the pre-crisis situation. It must create new possibilities for new centres of economic growth. It must also enable new entrants into the global economic mainstream," Zuma adds.