Lula calls for World Bank, IMF reform

BRAZIL: Brazilian President Liaise Inacio Lula da Silva urged Wednesday the reform of major international financial institutions, calling for them to put aside their "obsolete dogmas" and focus on development in Africa, Asia and Latin America.

"We need the World Bank (WB) and International Monetary Fund (IMF) to abandon once and for all their obsolete dogmas," Lula said in a ceremony honouring Angolan President Jose Eduardo dos Santos who is on an official visit here.

Ahead of the G20 meeting in Toronto later this week, Lula said. "principal imbalance" in the world today was "the gap between rich and poor countries." The organization's greater focus on development of Africa, Asia and Latin America, he urged, "would directly enhance global growth and reduce this unacceptable and harmful imbalance," he said.

Brazil is one of the world's major emerging economies, and has built a key negotiating role at G20 meetings in the wake of the global financial crisis. It strongly advocates reform of institutions like the World Bank and IMF, as well as stricter control of the financial system.

Heads of state and government of developed and emerging countries meet in Toronto Saturday to discuss the pressing issues of debt, financial regulation and taxation under economic policies. Brasilia, Thursday, AFP