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POLITICAL ECONOMY
China media calls for democracy at World Bank
by Staff Writers
Beijing (AFP) Feb 22, 2012


China's state-run Xinhua news agency called Wednesday for democratic and transparent elections for the next World Bank president, saying the US strangle-hold over the job was outdated.

The World Bank announced last week it would select a new president to succeed Robert Zoellick by April 20, the start of the World Bank and the International Monetary Fund's spring meetings in Washington.

Zoellick said he would step down at the end of his five-year term on June 30, setting up a race for the top post at the development bank.

"If the new president of the World Bank is indeed selected through a fair and democratic election, it will free the agency from a seven-decade-old tradition that saw the World Bank's president as a US citizen," Xinhua said in an unsigned commentary.

"Only a real 'transparent, open and fair' selection for the World Bank president will result in the installation of a visionary leader with merit, a leader who can push forward reforms and reduce poverty without ideological bias.

"The mentality that the World Bank's president must be of US origin has lost its legitimacy because of changes in global political and economic order, as well as the changing roles of the organization itself."

It was unclear if the commentary fully reflected the wishes of China's communist government, which does not allow open democratic elections for its government officials.

Last week, the government said it hoped the next head of the World Bank would be selected on "merit."

"China hopes that the World Bank will select the next president based on the principles of openness, competition and merit," foreign ministry spokesman Liu Weimin told reporters.

Liu would not be drawn on whether China would prefer a non-American to lead the global lender, unlike Brazil, which has already urged the World Bank to give proper consideration to developing country candidates.

According to the bank, nominations will be accepted until March 23 and candidates must be members of the Bank's 187 member countries.

Thanks to an unwritten pact between European powers and the United States dating to 1945, all 11 Bank presidents have been Americans and all IMF managing directors have come from Europe.

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China manufacturing activity weakens in Feb: HSBC
Beijing (AFP) Feb 22, 2012 - China's manufacturing activity continued to contract in February as export orders weakened, HSBC said Wednesday, in a further sign that the eurozone crisis and US weakness are hurting demand.

HSBC's preliminary purchasing managers index rose to 49.7, the highest level in four months, from a final reading of 48.8 in January, the British banking giant said in a statement.

But while the figure marked an improvement it still remained below 50, indicating the sector is contracting. HSBC will release a final reading early next month.

"With a meaningful rebound of domestic demand not in sight, external weakness is starting to bite, adding more downside risks to growth," HSBC Chief Economist Qu Hongbin said.

Qu urged the government to step up efforts to ease credit restrictions, which would boost lending and spur activity in the export-driven economy.

On Saturday, China's central bank cut the reserve requirement ratio for banks, effectively increasing the amount of money they can lend, for the second time in three months as officials moved cautiously to open the credit valves.

The world's second largest economy expanded by an annual 9.2 percent last year, narrowing from 10.4 percent in 2010, and is widely expected to slow further this year, but most analysts do not expect to see a sharp reduction.

Beijing has pledged to "pre-emptively adjust and fine-tune" economic policy to prevent a hard landing that could trigger widespread job losses in the key manufacturing sector and trigger social unrest.

But policymakers will likely move slowly for fear of reigniting inflation, which reached a more than three-year high of 6.5 percent in July, and property prices, which have risen out of the reach of many ordinary Chinese.



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