News / Asia

India Consulting With Other Emerging Countries on IMF Top Job

India's FM Mukherjee (file photo)
India's FM Mukherjee (file photo)

Indian economic officials are consulting with their counterparts in other emerging countries to try to reach consensus about whom to nominate for the top job at the International Monetary Fund. India and other developing countries may challenge the seven-decade old custom of having a European at the helm of the powerful financial institution.  

Finance Minister Pranab Mukherjee says he is in touch with his counterparts in other developing countries to consolidate a position regarding the post of Managing Director at the International Monetary Fund.

The frontrunner for the post is French Finance Minister Christine Lagarde who has put in her bid for the job. The position has always gone to a European, but emerging nations have criticized that practice as obsolete.

Earlier this week, IMF officials from India, Brazil, China, Russia and South Africa issued a joint statement saying using nationality as a criteria for the job undermines the legitimacy of the fund.  

However so far they have failed to name a common candidate.

In a meeting with Lagarde in Paris Thursday, Indian Commerce Minister Anand Sharma said the selection process should be consultative and transparent.

Economist S.L. Rao, with the Institute for Social and Economic Change in Bangalore, says countries like India, China, Brazil and South Africa are determined to push for more decision-making power at the IMF and the World Bank.   

“The whole balance of economic power is beginning to change…I think these are countries that now carry a substantial amount of economic clout and they should really have a considerably larger say than they do today in the financial institutions of the world,” said Rao.

The statement earlier this week from the emerging economies said that the choice of the IMF chief should be based on competence, not nationality.

Economist Rao says this reflects their view that emerging economies coped better with the global financial crisis compared to other countries.      

“The finance minister from India has managed its economy extraordinarily well, so has China," Rao said. "And I think, Europe, United States, Britain, have not demonstrated the same kind of competence. If they could not manage their own countries well, why do they think they can manage the global financial institutions?”  

India’s representative to the IMF has said any bid by emerging countries to put up their own candidate for the top job is unlikely to succeed. Mexico has nominated its central bank governor Agustin Carstens for the job.

However, observers say these countries are determined to push for overhaul of the governance of these institutions.   

Some change did take place last year when emerging economies were given six per cent more voting share at the IMF. But officials in India felt that this did not go far enough. The United States and European nations hold about half of the votes in the IMF mainly because of the relative size of their economies.  

Responding to the ongoing debate on the IMF chief’s selection, Indian Prime Minister Manmohan Singh said this week during a visit to Africa that reform of global institutions is high on the agenda of many developing countries, but could take time.   

“But we have also to recognize that international relations beyond a point are power relations and that those who wield power do not wish to yield ground very easily," said Rao. "I do recognize that the struggle for the transformation of global institutions including the Breton Woods institutions is not a one-shot operation. It is a long process, in which all the developing countries will have to stand united.”

Besides the IMF, India has also been pushing for reforms at the United Nations, and asking for a permanent seat in the Security Council.

The post of IMF chief became open when Managing Director Dominique Strauss-Kahn resigned after his arrest in New York on charges of sexual assault.

You May Like

Video Snowstorm Sweeps Northeastern US

'This is nothing like we feared it would be,' New York City Mayor Bill de Blasio says; he had warned storm could be one of worst in city history More

Millions of Displaced Nigerians Struggle With Daily Existence

Government acknowledges over a million people displaced in 2014 due to fight against Boko Haram insurgency More

Facebook: Internal Error to Blame for Outages

Temporary outage appeared to spill over and temporarily slow or block traffic to other major Internet sites More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Obama Urges Closer Economic Ties During Historic India Visiti
X
Aru Pande
January 26, 2015 9:33 PM
U.S. President Barack Obama says the United States and India must do better to capitalize on untapped potential in their economic relationship - by removing some of the roadblocks to greater trade and investment. As VOA correspondent Aru Pande reports from New Delhi, Obama spoke after participating in India’s Republic Day celebration.
Video

Video Obama Urges Closer Economic Ties During Historic India Visit

U.S. President Barack Obama says the United States and India must do better to capitalize on untapped potential in their economic relationship - by removing some of the roadblocks to greater trade and investment. As VOA correspondent Aru Pande reports from New Delhi, Obama spoke after participating in India’s Republic Day celebration.
Video

Video US, EU Threaten New Russia Sanctions Over Ukraine

U.S. President Barack Obama has blamed Russia for an attack by Ukrainian separatists that left dozens dead in the port of Mariupol and cast further doubt on the viability of last year’s cease-fire with the Kyiv government. VOA’s Michael Bowman reports from Washington.
Video

Video White House Grapples With Yemen Counterterrorism Strategy

Reports say the U.S. has carried out a drone strike on suspected militants in Yemen, the first after President Barack Obama offered reassurances the U.S. is continuing its counterterrorism operations in the country. The future of those operations has been in question following the collapse last week of Yemen’s government. VOA White House correspondent Luis Ramirez reports.
Video

Video Kerry Warns Against Violence in Nigeria Election

US Secretary of State John Kerry visited Nigeria Sunday in a show of the level of concern within the U.S. and the international community over next month’s presidential election. Chris Stein reports.
Video

Video Zoo Animals Show Their Artistic Sides

The pursuit of happiness is so important, America's founding fathers put it in the Declaration of Independence. Any zookeeper will tell you animals need enrichment, just like humans do. So painting, and even music, are part of the Smithsonian National Zoo's program to keep the animals happy. VOA’s June Soh met some animal artists at the zoo in Washington. Faith Lapidus narrates.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video Saudi, Yemen Developments Are Sudden Complications for Obama

The death of Saudi Arabia's King Abdullah and the collapse of Yemen’s government have cast further uncertainty on U.S. efforts to fight militants in the Middle East and also contain Iran’s influence in the region. VOA White House correspondent Luis Ramirez reports on the new complications facing the Obama administration and its Middle East policy.
Video

Video Progress, Some Areas of Disagreement in Cuba Talks

U.S. and Cuban officials are reporting progress from initial talks in Havana on re-establishing diplomatic ties. U.S. Assistant Secretary of State (for Western Hemisphere Affairs) Roberta Jacobson said while there was agreement on a broad range of issues, there also are some “profound disagreements” between Washington and Havana. VOA State Department correspondent Pam Dockins has the story.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.
Video

Video S. Korean Businesses Want to End Trade Restrictions With North

Business leaders in South Korea are calling for President Park Geun-hye to ease trade restrictions with North Korea that were put in place in 2010 after the sinking of a South Korean warship.Pro-business groups argue that expanding trade and investment is not only good for business, it is also good for long-term regional peace and security. VOA’s Brian Padden reports.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid