NO SILVER LINING TO THE IMF CLOUD
European powers appear set on perpetuating their arbitrary "entitlement" to the position of Managing Director of the International Monetary Fund in the wake of the controversy that precipitated the resignation of Managing Director, Dominique Strauss-Kahn. Despite claims from the IMF that the selection this time around would "take place in an open, merit-based, and transparent manner" as well as a longstanding commitment to open the position to nationals of all member states, most developed country representatives had expressed clear preferences for European candidates even before nominations opened on May 23, writes Ingrid Srinath, Secretary General, CIVICUS:World Alliance for Citizen Participation.
Their stances will do nothing to allay fears among developing countries and civil society that pledges to address unrepresentative governance at the Bretton Woods institutions are mere window dressing. They are in direct contravention of the explicit recommendation that resulted from extensive civil society consultations last year that the election would be conducted "without pre-selection by any sub-group of powerful countries". Particularly since the arguments being proffered in favour of European candidates fly in the face of reason and logic.
Developing countries and emerging economies that account for most of the world’s population, over half the world’s output and who are being pressed to increase their capital contributions, will have negligible say in the decision unless they are willing to take a firm, collective stance behind a consensus candidate. Statements from South Africa and Australia on behalf of the G-20 committee on IMF reform have been encouraging in this regard.
(*) By Ingrid Srinath, Secretary General, CIVICUS:World Alliance for Citizen Participation.
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© Inter Press Service (2011) — All Rights Reserved. Original source: Inter Press Service