The whole state of affairs of the selection the next IMF chief has created a lot of brouhaha among the nations. The emerging nations are urging on a candidate representing the rising economies of the world, and are resenting European officials' suggestion that the next IMF head should automatically be a European.
India is talking with other emerging nations to build support for a common candidate for a developing economy to be the next head of the International Monetary Fund, with Mexico's Central bank chief being a possibility, said two government sources, reported Reuters.
Brazil, Russia, India, China and South Africa, known as the BRICS, sharply criticized European officials on Tuesday for suggesting the next IMF head should automatically be a European. But then China's evident support for the candidacy of French Finance Minister Christine Lagarde is coming across as a hurdle in order to achieve consensus among developing economies.
We are open to support a strong candidate from emerging economies. He or she could either be Mexican, Brazilian or South African, an Indian government source, who declined to be named, told Reuters. We expect a common candidate of BRICS/emerging economies may be announced in two to three days, the source added.
In the first joint statement issued by the director's at the IMF, BRICS said the choice should be based on competence and not nationality of a candidate. They called for abandoning the obsolete unwritten convention that requires that the head of the IMF be necessarily from Europe.
Lagarde, who diplomats said has full support from US and China, announced her candidacy on Wednesday. Earlier, France's government said China would back Lagarde, although the Chinese foreign ministry declined comment.
Indian negotiators say they would like to see a consensus candidate from the emerging markets. Even if it does not mean winning the contest, putting forth a joint candidate would at least send a strong message that there is a need for reforms at the IMF, the first source said.
The other source downplayed a lack of unity within the BRICS grouping.You have seen the BRICS statement on the matter. China is part of the BRICS. So they are with us, the second source said.
Montek Singh Aluwalia, India's most likely contender for the post had been ruled out because of his age. He is 67, whereas the as per IMF rules, the head of the global lender should not be over 65 years of age.
The source said India would have preferred Trevor Manuel, South Africa's former finance minister, as the joint emerging markets candidate. But Manuel is not finding favor from a few emerging countries, the source added.
The post of IMF chief fell vacant after former boss Dominique Strauss-Kahn resigned last week after he was charged with attempted rape of a hotel maid in New York. Kahn, however, denies the charges.