Pretoria – If appointed managing director of the International Monetary Fund (IMF), Governor of the Bank of Mexico Agustin Carstens will ensure fairness and helpfulness of the fund for its survival.
“I would be an MD dedicated to serving all the membership, and I would consider my main responsibility to serve as guardian of even-handedness and of the cooperative nature of the institution, for this is the foundation for its survival and effectiveness,” said Carstens on Tuesday.
The governor was speaking at an interview with the Fund’s 24 board members that could possibly see him land the post of managing director of the fund. He is one of the two candidates shortlisted for the top job vacated by Dominique Strauss-Kahn due to sexual assault charges in the US.
Carstens is seen as the answer for developing nations, including South Africa, who want the post to go to a leader from developing nations. Traditionally, the job has gone to a European.
“In my academic and policy making career, including my direct involvement in diverse crisis resolution episodes, I have acquired the credentials and the skills necessary to effectively lead this institution. I have the capacity to provide intellectual leadership for the institution,” he said during his interview.
Carstens said although the fund has played a leading role in the resolution of several crises, among others, more needs to be done to address several matters.
He said the Fund’s institutional development has lagged behind global developments.
“The next managing director will need to address four remaining fundamental weaknesses: governance; the ability to perform appropriate surveillance (both at the national and multilateral levels) and prevent crises; the capacity to effectively support crisis resolution; and, finally, the competence to induce policy coordination at the global level.
“Failure to address these issues risks diminishing the IMF’s relevance and alienating its membership,” said Carstens.
He said he believed that international financial institutions and national governments would be more receptive and willing to cooperate with the Fund if the legitimacy of the institution is enhanced. Without an effective IMF, the world economy risks localised crises spreading to broader areas.
“The Fund is a unique institution that can provide the capacity and credibility to avert crises and resolve them when they occur. To deliver on this, it needs a legitimate governing structure, substantially improved surveillance and crisis prevention and resolution capabilities, and enhanced policy coordination.”
French Finance Minister Christine Lagarde, the second candidate, will be interviewed by the board when she visits the IMF on Wednesday and Thursday.
The Board is scheduled to meet early next week to discuss the strengths of each candidate, with the aim of completing the selection process by June 30. – BuaNews
