FAQs - Canada, the World Bank and the International Monetary Fund
Frequently Asked Questions (Revised June 2008) | pdf
Answers
Who represents Canada at the World Bank and IMF?
Per the Bretton Woods and Related Agreements Act of 1945, the Minister of Finance represents Canada at the Board of Governors for both the World Bank and the International Monetary Fund (IMF). The Minister nominates Executive Directors to each institution, and technically the rest of the Constituency (see “Who does Canada represent…” below) has to approve this nomination before it is official. The Executive Directors are responsible for the general operations of the institutions and exercise all the powers delegated to them by the Board of Governors under the Bank’s and IMF’s Articles of Agreement . These Articles of Agreement also outline the conditions of membership and the general principles of organization, management, and operations of the two institutions.
While the Department of Finance- through its International Finance and Development Division and International Policy and Analysis Division (see System Chart) - is primarily responsible for Canada’s participation at the Bank and IMF, the Canadian International Development Agency (CIDA) provides policy support to the Governor and his or her agents. The Minister of International Cooperation, who is responsible for CIDA, is the alternate Governor.
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Who does Canada represent at the World Bank and IMF?
The World Bank and IMF have 182 and 185 member countries respectively divided into 24 constituencies. Canada is in a constituency with 12 other members at the World Bank, and 11 other members at the IMF. These groups are usually regionally or geographically grouped.
At the World Bank, the constituency includes: Antigua and Barbuda, The Bahamas, Barbados, Belize, Canada, Dominica, Grenada, Guyana, Ireland, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines.
At the IMF, the constituency is the same, but does not include Guyana.
Accordingly, Canada is the only G7 country that represents both lenders (Canada and Ireland) and borrowers (the Caribbean) at the World Bank and the IMF. It also represents one European country – Ireland.
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Who are Canada’s current Executive Directors?
Samy Watson became the Canadian Executive Director to the World Bank in November 2006 and Jonathan Fried became the Canadian Executive Director to the International Monetary Fund in April 2006. More information about the Canadian offices at the World Bank and IMF can be found on-line.
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Who are some of Canada’s past Executive Directors to the Bank and Fund?
| *The World Bank* | *The IMF* |
| Leonard Good –1994 – 1998 | Ian Clark – 1993 - 1996 |
| Terrie O’Leary –1998 – 2002 | Thomas A. Bernes - 1996 - 2001 |
| Marcel Massé –2002 – 2006 | Ian E. Bennett – 2001 - 2004 |
| Kevin G. Lynch – 2004 – 2006 | |
| Jonathan Fried – 2006 – 2008 |
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How can you contact the offices of the Executive Directors?
The World Bank Phone/Fax: 202-458-0082/202-477-4155 | The IMF Phone/Fax: 202-623-7778/202-623-4712 |
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What other positions are available to Canadians at the World Bank and IMF?
The Executive Directors of both institutions are supported by a team of advisors who tend to have experience in development, finance and central banking. All other positions are available to Canadians on a competitive basis, from the general staff pool, based on experience and qualifications.
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How much does Canada contribute to the World Bank and IMF?
Canada contributes to the Bank and Fund in a number of ways. In addition to the payment of its subscription of shares and quotas, which are units of ownership in both institutions, Canada also contributes to the World Bank Group’s International Development Association (IDA), the Multilateral Debt Relief Initiative, the IMF’s Poverty Reduction Growth Facility (PRGF) and various Multi-Donor Trust Funds (MDTFs), . In fiscal year 2007/2008, Canada contributed CDN$318.27 million to IDA. It has pledged a total of CDN$2.5 billion to the MDRI and by end of 2007 had committed $46.3 million of this. Canada’s last payment to the PRGF was in 2006/2007 of CDN$7.82 million.In 2007/2008, it contributed $198 million to the Bank’s MDTFs. Canada’s official development assistance in 2007 amounted to approximately CDN$3.92 billion, representing 0.28% of Canadian Gross National Income.
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Canada’s total contribution
As of June 2007, Canada has subscribed or contributed more than US$11.761 billion to the World Bank. The breakdown by World Bank agency is as follows:
IBRD – US$ 5.404 billion
IFC – US$ 81.342 million
MIGA - US$ 56.535 million
IDA – US$ 7.8348 billion
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Does Canada borrow from the Bank and Fund?
Canada and other developed countries do not meet the criteria for borrowing from the Bank or Fund because of the size of their economies.
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How much say does Canada have at the Bank and Fund?
According to the Bank’s and IMF’s Articles of Agreement, each member country is required to have a minimum subscription of shares/quotas in the total capital stock of both institutions. The amount of the minimum subscription is roughly proportional to the absolute size of the country’s economy in the world.
Member countries are then allocated a certain number of votes according to the size of this subscription.
Canada is tied with Italy as the 6th largest contributor to the World Bank of total capital subscriptions. Canada contributes US$4.479 billion and has 45,045 votes, which represents 2.78% of the total.
At the IMF, Canada is ranked 7th. It contributes $6.369 billion SDR and has 63,942 votes or 2.89% of the total.
| The World Bank | The IMF | |||||
| Shares | No. of Votes | Percentage | Quota | No. of Votes | Percentage | |
| US | 264,969 | 265,219 | 16.41 | 37,149 | 371,743 | 16.77 |
| Japan | 127,000 | 127,250 | 7.87 | 13,313 | 133,378 | 6.02 |
| Germany | 72,399 | 72,649 | 4.49 | 13,008 | 130,332 | 5.88 |
| France | 69,397 | 69,647 | 4.31 | 10,739 | 107,635 | 4.86 |
| UK | 69,397 | 69,647 | 4.31 | 10,739 | 107,635 | 4.86 |
| Canada | 44,795 | 45,045 | 2.78 | 6,369 | 63,942 | 2.89 |
| Italy | 44,795 | 45,045 | 2.78 | 7,056 | 70,805 | 3.19 |
| All others | 880,597 | 934,097 | 57.05 | 118,999.7 | 1,230,723 | 55.53 |
| Total | 1,573,349 | 1,619,599 | 100 | 217,372.7 | 2,216,193 | 100 |
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Is Canada a big player at the World Bank and IMF?
Canada’s subscriptions and voting power are marginal. However, as a member of the group of the world’s seven most industrialized countries (G7), Canada is a significant player both within and outside the Bank and IMF. Canada’s influence is further strengthened by the fact that it is one of very few countries represented on the Boards of Directors of all the regional development banks: the European Bank for Reconstruction and Development, the Asian Development Bank, the Inter-American Development Bank, the Caribbean Development Bank and the African Development Bank. In addition, Canada bridges the gap between lender and borrower countries. As mentioned above, Canada is the only G7 country that is grouped with an EU country (Ireland), a HIPC country (Guyana) and borrowing or category II countries (Caribbean).
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How do we know what Canada does at the World Bank and IMF?
The Minister of Finance tables an annual report to Parliament on activities related to the Bank and International Monetary Fund . In response to pressure from civil society, the annual Report on Operations Under the Bretton Woods and Related Agreements Act has improved dramatically in recent years. They now disclose the Canadian position on a range of issues, and a medium term strategic framework for engaging with the Bank and IMF . That said, these reports have never been debated before Parliament, and were only referred to the Standing Committee on Foreign Affairs and International Development for the first time in April 2007.
The Department of Finance also outlines some of its priorities and objectives in the department’s Sustainable Development Strategy , a requirement of all federal government departments, and in its annual Reports on Plans and Priorities.
Canada’s contributions and support for special initiatives at the World Bank and the IMF are also outlined in some detail in the annual budget to Parliament made by the Finance Minister.
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To what extent are Canadian officials at the World Bank and IMF accountable to government and the public?
The House of Commons Standing Committee on Foreign Affairs and International Development and the Senate Committee on Foreign Affairs have the mandate to review Canada’s participation in all international institutions, including the Bank and IMF. However, these matters are not regularly discussed. The last review of the Bretton Woods Institutions was completed in 1995, and no Canadian Executive Director has appeared before any Commons Committee since then. In 1994, the Special Joint Committee Reviewing Canadian Foreign Policy recommended that the ministers who are responsible for the IFIs and Canada's Executive Directors appear annually before Parliament's foreign affairs and finance committees. This has yet to happen.
For nine years, Finance Canada and CIDA held bi-annual meetings with civil society prior to the Bank and IMF Spring and Fall meetings. These meetings were an important venue for exchanging opinions on a variety of issues. However, such an exchange has become less of a priority for the government since 2006.
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