Ruto criticises IMF, World Bank governance, calls for reforms

President William Ruto delivering a public lecture at Peking university in China.[PCS]

President William Ruto has criticised the governance of the International Monetary Fund (IMF) and the World Bank, saying that the current structure only favours wealthy countries.

Speaking at Peking University in Beijing, China, on Wednesday, April 23, Ruto called for reforms to make these institutions independent and apolitical.

"There are many reforms required in these institutions, but I believe that the most consequential is governance changes that will transform them into independent, apolitical global institutions, insulated from the national interest of their shareholders," he said.

According to the Kenyan Head of State, while the two institutions have played a key role in financing states, they have evolved into development finance institutions.

However, ownership and power still remain with the wealthy countries.

Citing the IMF SDR issuance, Ruto noted that 64 per cent of the allocation ended up with wealthy countries that did not need liquidity support. The poorest countries, which needed it most, received only 2.4 per cent.

He added that while there are many reforms required in these institutions, the most important is governance changes that would transform them into independent, apolitical global entities, free from the interests of their shareholders.

Such reforms, according to him, require the adoption of modern corporate governance best practices, where shareholders elect directors who, in turn, appoint and supervise competent, professional management.

UN Security Council

Ruto also called for equal representation of African countries at the UN Security Council, arguing that the current structure fails to uphold equality.

"We must imagine a new peace and security architecture, one rooted in democracy, equity, transparency, and equal regional representation," he said.

"It is my view that the security architecture of the world as it is today should be representative of the five continental blocks: The Americas, Europe, Asia-Pacific, and Africa/Middle East, with equal representation for each of the regions."

He added that it seems reasonable to set the membership for each region at three, totaling 12 permanent members.

Ruto was speaking during his four-day State visit to China.