The global economic meltdown has underscored the need for transformation of the global financial system and the reform of world financial institutions, argues South African President Jacob Zuma.

Addressing delegates at the World Economic Forum on Africa in Cape Town on Wednesday, Zuma stated that reform of the so-called Bretton Woods institutions was essential in order to "reflect changing economic realities and provide a voice for emerging and developing countries".

The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid-twentieth century. This system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent States.

Currently, developing nations, especially from Africa, did not have influential voting power in global institutions dominated by the Bretton Woods system, such as the International Monetary Fund (IMF) and the World Bank.

Concurring with Zuma's argument, former United Nations (UN) secretary-general Kofi Annan, stated that the time had now come for the major industrialised countries to accept long-stalled changes in the governing structures of the IMF and the World Bank.

Reform of the governance of these bodies was essentially agreed to in 2008, however, Annan warned that such promises faced formidable institutional resistance.

"The countries that sit on the boards and have the bigger voice in the decisions being taken will have to reflect on how much they are prepared to give up to make the participation of the emerging nations and the poorer countries meaningful," Annan said.

"Speaking as someone who tried desperately to reform the UN Security Council, I can tell you that reform is difficult, but essential."

Annan stated that, while the establishment of the Group of Twenty Finance Ministers and Central Bank governors, represented a step towards a more inclusive global governance system, it should only be seen as an interim step and that further institutional reforms were needed to ensure that interests of low-income countries were adequately represented.

World Bank MD Ngozi Okonjo-Iweala agreed with this appeal and added that global governance currently fell short of meeting the needs of the African continent.

It was essential that there was a significant push by African leaders to make their voices heard at the decision-making tables determining global socioeconomic policies.

"We need to make sure we have a global system in which our concerns as lower-income countries are also reflected," said Okonjo-Iweala.

"I hope we will not ignore the needs of the poor, because if we do, whatever system we create will not last long," agreed Annan.