World Bank gives more clout to a rising China

The World Bank recognized China’s growing economic influence and agreed Sunday to elevate Beijing’s voting power, placing it behind only the United States and Japan in the 186-nation lending organization.

Lifting China above Western powers, including Germany, France and Britain, also gives other nations with emerging economies more voice in how the bank operates and lends.

Bank members also decided to increase the institution’s capital by $3.5 billion; it was the first increase in more than 20 years.

China’s voting stake rose from 2.78 percent to 4.42 percent. The U.S. stake remains the largest at 15.85 percent, effectively giving it veto power. Japan follows at 6.84 percent.

Countries such as China, Brazil, India and Russia long have complained about U.S. and European dominance in the bank’s decisions. Under an informal agreement dating to the end of World War II, an American is president of the bank and a European leads its sister institution, the International Monetary Fund.

Robert B. Zoellick, the bank’s president, said at a news conference that the shift in voting power “recognizes that we need to consign outdated concepts like ‘Third World’ to history. Today, the world is moving toward a new, fast-evolving, multipolar economy.” Speaking after a meeting of the bank’s policy-setting Development Committee, Zoellick said emerging economies are critical sources of demand in the global recovery.

Oxfam, a development advocacy group, said the World Bank broke a promise made at its meeting last year in Turkey to protect the voice of the poorest countries.

“Of 47 countries in sub-Saharan Africa,” said Caroline Hooper-Box, an Oxfam spokeswoman, “more than a third have lost share, stayed the same and one [Sudan] has gained.” World Bank spokesman David Theis said that was a misleading statement because it did not give the bank credit for voting reforms implemented in 2008, which increased African shares.

Zoellick said the capital increase “means that we will no longer face the possibility that we would have to cut back our lending later this year.” He said the bank has provided $105 billion in financial support to its members since July 2008.

Treasury Secretary Timothy F. Geithner said that the bank “made a strong and compelling case” for the increase and that he would ask Congress to approve the U.S. share — about $117 million each year over five years.