Lagarde seeks top IMF job
Source: Agencies |
May 26, 2011, Thursday
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Print Edition
Print Edition
French Finance Minister Christine Lagarde joined the race to head the IMF yesterday despite anger in big emerging economies over Europe's "obsolete" lock on the job.
Lagarde announced her candidacy on the eve of a G8 summit after securing the unanimous backing of the 27-nation European Union.
At a news conference in Paris, she promised to serve a full five-year term if chosen, unlike her three predecessors, and to give top priority to completing reform of the International Monetary Fund to give greater weight to emerging economies.
"The emergence of a number of big players like China, India, Brazil and Russia forces us to ask ourselves about their representation at the heart of the institution," Lagarde said.
The 55-year-old former corporate lawyer, who speaks fluent English, has won plaudits for her deft chairing of the G20 finance ministers and communications skills.
But unlike Dominique Strauss-Kahn, who resigned last week after being charged with attempted rape, she is not an economist and may struggle to match his thought leadership over the management of the world economy.
European Commission chief Jose Manuel Barroso said Lagarde had the "indispensable qualities to ensure the IMF's mission and its vital contribution to international economic stability."
The only other declared candidate is Mexican central bank governor, Augustin Carstens, but he has not gathered the backing of the main emerging economies.
US Treasury Secretary Timothy Geithner said both Lagarde and Carstens were very talented, credible candidates.
Brazil, Russia, India, China and South Africa criticized EU officials for suggesting the next IMF chief must be a European, a convention that dates back to the founding of the global lender at the end of the World War II.
"The convention that the selection of the managing director is made, in practice, on the basis of nationality undermines the legitimacy of the fund," said IMF directors for China, Brazil, India, South Africa and Russia in a joint statement, rejecting that the successor to Strauss-Kahn should continue to be a European.
However, the countries known as the BRICS failed to unite behind a common alternative candidate, leaving the way clear for Lagarde unless she slips on a pending French legal case.
Lagarde said her conscience was clear and she would remain a candidate even if judges at a special court for ministers decided on June 10 to open a full investigation into allegations that she abused her authority in a 2008 arbitration case.
In a nod to the emerging nations' concerns, she said she was a candidate to serve all IMF members, not just Europe, but her experience and good relations with European officials would be an advantage given the IMF's role in the euro zone debt crisis.
"Being European shouldn't be a plus, but it shouldn't be a minus either," Lagarde said.
Hours before the BRICS statement was issued in Washington, France's government said China would back Lagarde.
The Chinese Foreign Ministry declined comment yesterday.
France, which presides over the G20 this year, has made an effort to work with China on key issues for developing nations, such as global monetary reform and commodity market speculation.
Last week, the head of China's central bank, Zhou Xiaochuan, said the IMF's leadership should reflect the growing stature of emerging economies. But he stopped short of saying its new boss should be from an emerging economy.
South Africa and Kazakhstan may put forward their own candidates.
Under a long-standing agreement between the United States and Europe, the top job at the IMF goes to a European while an American leads its sister organization, the World Bank.
The EU and the United States, which sources in Washington have said will back a European, have enough joint voting power to decide who leads the IMF.
Securing support from some emerging economies would defuse a potentially bitter row over the decision though.
The IMF's board will draw up a shortlist of three candidates and has a June 30 deadline for picking a successor.
Lagarde announced her candidacy on the eve of a G8 summit after securing the unanimous backing of the 27-nation European Union.
At a news conference in Paris, she promised to serve a full five-year term if chosen, unlike her three predecessors, and to give top priority to completing reform of the International Monetary Fund to give greater weight to emerging economies.
"The emergence of a number of big players like China, India, Brazil and Russia forces us to ask ourselves about their representation at the heart of the institution," Lagarde said.
The 55-year-old former corporate lawyer, who speaks fluent English, has won plaudits for her deft chairing of the G20 finance ministers and communications skills.
But unlike Dominique Strauss-Kahn, who resigned last week after being charged with attempted rape, she is not an economist and may struggle to match his thought leadership over the management of the world economy.
European Commission chief Jose Manuel Barroso said Lagarde had the "indispensable qualities to ensure the IMF's mission and its vital contribution to international economic stability."
The only other declared candidate is Mexican central bank governor, Augustin Carstens, but he has not gathered the backing of the main emerging economies.
US Treasury Secretary Timothy Geithner said both Lagarde and Carstens were very talented, credible candidates.
Brazil, Russia, India, China and South Africa criticized EU officials for suggesting the next IMF chief must be a European, a convention that dates back to the founding of the global lender at the end of the World War II.
"The convention that the selection of the managing director is made, in practice, on the basis of nationality undermines the legitimacy of the fund," said IMF directors for China, Brazil, India, South Africa and Russia in a joint statement, rejecting that the successor to Strauss-Kahn should continue to be a European.
However, the countries known as the BRICS failed to unite behind a common alternative candidate, leaving the way clear for Lagarde unless she slips on a pending French legal case.
Lagarde said her conscience was clear and she would remain a candidate even if judges at a special court for ministers decided on June 10 to open a full investigation into allegations that she abused her authority in a 2008 arbitration case.
In a nod to the emerging nations' concerns, she said she was a candidate to serve all IMF members, not just Europe, but her experience and good relations with European officials would be an advantage given the IMF's role in the euro zone debt crisis.
"Being European shouldn't be a plus, but it shouldn't be a minus either," Lagarde said.
Hours before the BRICS statement was issued in Washington, France's government said China would back Lagarde.
The Chinese Foreign Ministry declined comment yesterday.
France, which presides over the G20 this year, has made an effort to work with China on key issues for developing nations, such as global monetary reform and commodity market speculation.
Last week, the head of China's central bank, Zhou Xiaochuan, said the IMF's leadership should reflect the growing stature of emerging economies. But he stopped short of saying its new boss should be from an emerging economy.
South Africa and Kazakhstan may put forward their own candidates.
Under a long-standing agreement between the United States and Europe, the top job at the IMF goes to a European while an American leads its sister organization, the World Bank.
The EU and the United States, which sources in Washington have said will back a European, have enough joint voting power to decide who leads the IMF.
Securing support from some emerging economies would defuse a potentially bitter row over the decision though.
The IMF's board will draw up a shortlist of three candidates and has a June 30 deadline for picking a successor.
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