As the International Monetary Fund's leadership is in disarray, the choice as to who will take the helm is now upon the board directors, who by tradition had been given to leaders from Europe. The prospect of a succession crisis at the IMF has been imminent with its current managing director, Dominique Strauss-Kahn, confronting growing pressure to give up his position, is still locked up in jail.
Mr Strauss-Kahn was arrested in New York Saturday on a charge of sexual assault on a chambermaid at the upscale hotel where he was staying. A New York judge has ordered him jailed without bail. Will an Asian leader be considered at this crucial time to take a more proactive role in the funding institution
Names of prominent Asian bankers and finance ministers have emerged from meetings at the IMF headquarters in Washington D.C. Among them include Asian Development Bank president Haruhiko Kuroda, Singapore's Finance Minister Tharman Shanmugaratnam, who now heads the IMF's policy-making committee.
A respected economist from South Korea, SaKong Il, was also in the list of possible contenders from Asia, along with the deputy chairman of India's Planning Commission, Montek Singh Ahluwalia. Analysts see the Asians cited as possible nominees for the position as slim, however, for various reasons, including the age of the personalities mentioned (the IMF managing director is required to retire at age 70) and the role played by the economies they represent.
Still, as the Financial Times quotes Jacob Funk Kirkegaard of the Peterson Institute in Washington as saying, "between a European political heavyweight like Lagarde and a non-European heavyweight like Tharman with united emerging market backing, the latter may be a better choice."
Viewed as a move toward an increased role for Asians in the IMF, the election to a deputy managing director position was raised as a possibility on Tuesday for China's top official at the institution, Zhu Min, according to a Wall Street Journal report. Mr. Zhu, said the report, was considered not experienced enough for the position of managing director and was not expected to rise further than to a deputy managing director. In Beijing, a spokesperson at the Foreign Ministry told journalists that the IMF leadership selection should be "based on fairness, transparency, and merit."
The ADB's Mr Kuroda, at the May 4-7 annual governors' meeting of the Manila-based multilateral development institution, said that with "an economically strong, export-dependent Asia that is experiencing an inundation of inward investment," the region should now "play a more proactive role" in promoting global monetary and financial stability. In Europe, France Finance Minister Christine Lagarde is a top contender for the post if Mr Strauss-Kahn relinquishes his post.
Source: OfficialWire
