Finance Minister Pranab Mukherjee today said India and other developing countries were trying to build a consensus on the issue of the next chief of the International Monetary Fund . His remarks came a day after France’s Finance Minister Christine Lagarde announced her candidacy for the post.
“I am in touch with finance ministers of developing countries and emerging economies... We are trying to consolidate our position where we can take a view… I had a discussion with the finance minister of South Africa over the phone yesterday,” Mukherjee told reporters.
While most European countries are backing Lagarde, BRICS, an economic bloc comprising Brazil, Russia, India, China and South Africa, yesterday opposed the unwritten convention that the IMF managing director had to be a European.
In Ethiopia, Prime Minister Manmohan Singh also expressed disappointment over the developed world’s attempt to control IMF. Economic Affairs Secretary R Gopalan said, “The Prime Minister has clearly indicated that it (appointment of IMF Managing Director) is a power play ... What we are focusing on is whether we have credible, open, transparent process.”
“If all BRICS countries field one common candidate then there is some chance of a candidate from India or an emerging-market economy becoming IMF head. We want to make our voice heard,” a finance ministry official told Business Standard.
India was exploring the possibility of fielding Planning Commission Deputy Chairman Montek Singh Ahluwalia for the post, but his candidature is now ruled out since he has crossed the permissible limit of 65 years.
The post of IMF managing director fell vacant following the exit of Dominique Strauss-Kahn, who is being tried for charges of sexual assault in the US.
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The Executive Board of IMF had by consensus named Strauss-Kahn as managing director of IMF on September 28, 2007. Strauss-Kahn, the tenth head of IMF, was selected after the European Union and the United States both supported him. He succeeded Rodrigo de Rato of Spain when the latter stepped down on October 31.
For over 60 years, EU had controlled selection of the IMF MD under an unwritten agreement with the US. But the year Strauss-Kahn was appointed, the Executive Board said it would consider candidates from any of the 185 member countries and the candidates would be considered on professional record and qualifications and without geographical preferences. But only one additional candidate, Josef Tošovský, who briefly served as prime minister of Czech Republic, was nominated by Russia.