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Lagarde makes a case for herself

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BS Reporter New Delhi
Last Updated : Jan 20 2013 | 10:13 PM IST

Sensing that BRICS nations are opposed to any mandatory requirement for IMF head to be a European, French Finance Minister Christine Lagarde on Tuesday sought support from India for her candidature to the post on merit as well as leadership and not nationality.

Lagarde on Tuesday met Prime Minister Manmohan Singh, Finance Minister Pranab Mukherjee and Planning Commission Deputy Chairman Montek Singh Ahluwalia to explain them the merit of her candidature.

“We agreed on the fact that nationality, region, origin should not either prejudice or privilege a particular candidate. They (Indian dignitaries) have all also indicated to me that the selection in their view should be based on the credentials and leadership of the candidate for the job,” she said.

From New Delhi, Lagarde will leave for Beijing on Tuesday. After that she will go to Lisbon, Jedah and Cairo before returning to Paris.

“As I am campaigning for the position of managing director of IMF, I decided to focus my visit on emerging market economies in particular. India obviously comes to mind as top destination on my list of countries,” she said. To a query whether she will withdraw her candidature due to a legal row, Lagarde said,”No way, I will not withdraw my candidature at all.”

The French finance minister is embroiled in a legal dispute over her alleged decision to settle a dispute between the state and businessman Bernard Tapie. Earlier BRICS executive directors at IMF had come out with a joint statement demanding cancellation of unwritten agreement between Europe and US that IMF head has to be a European.

She said, “Emerging market economies also known as BRICS have occasionally expressed concerns about the selection process of the MD of IMF. I thought it was important that I could explain to them why I was a candidate and I would hear from them what concerns they have on the selection process.”

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She said all agree that the selection process should be open, transparent and merit-based.

To a query, Lagarde said, “I will not draw any conclusions from the meetings. They will obviously give preference to the candidate who has merit”.

When asked whether Indian leaders gave them any assurance, she said she was not here to seek assurance but to offer her candidacy and listen to their concerns. “I will want to make available to the fund my expertise, my background and my knowledge. The IMF does not belong to anybody, but to all member countries. The reforms that have been undertaken, particularly for developing countries have to be implemented,” she added.

To a query whether she feels frustrated coming to India, Lagarde said, “I never have a sense of frustration when I come to India, I feel close to India. There is a little part of me that is turning Indian. I never have regret leaving India. Rather I will like to stay more.”

She said some of the critical reforms in IMF took place in the past three years and countries like India and China had been underrepresented.

Advanced countries currently have 60.5 per cent share in voting power, which will be reduced to 56.3 per cent after reforms. Developing countries have 39.5 per cent share, which will be raised to 44.7 per cent. India’s share is 1.9 per cent which would increase to 2.6 per cent. Lagarde said she would look into increasing India’s share by 40 per cent.

The IMF MD post fell vacant after Dominique Strauss-Kahn stepped down over charges of sexual assault. If elected, Lagard would be the first woman IMF head.

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First Published: Jun 08 2011 | 12:40 AM IST

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