Pretoria – Finance Minister Pravin Gordhan has congratulated Christine Lagarde on her appointment to the top job at the International Monetary Fund (IMF).
“I would like to express my congratulations to Ms Lagarde on her appointment as Managing Director of the IMF. As the global economy continues to be plagued with persistent economic challenges, the role of the IMF has and will continue to become crucial to global co-ordination and crisis management,” said Gordhan on Wednesday.
The minister expressed his confidence in her, saying she will be able to actively enhance the MD role.
Lagarde, 55, who has been serving as the French Finance Minister was announced as the new MD of the fund on Tuesday following a two-horse race between her and Governor of the Bank of Mexico, Agustin Carstens.
The minister said the Fund should continue with its focus on the transfer of quota shares in favour of emerging and developing countries in order to increase their relative weights in the Fund’s decision making process.
“Therefore, the reforms of the Fund’s quotas and governance in 2010 should be implemented at short notice, and a comprehensive review of the current quota formula should be approved,” explained the minister.
Additionally, the IMF should also focus on a commitment that the next IMF Managing Director would not necessarily be a European citizen. Traditionally, the post has gone to a European. Emerging markets have been calling for the post to go to a leader from the developing world.
Gordhan said small countries should have the appropriate voice, given that the financial challenges small countries face require greater attention from the Fund.
The strengthening of the International Monetary and Financial Committee and improving the surveillance of systemically important advanced economies also should be looked at.
Modernising the lines of thought, adapting them to the reality of global and domestic economies, and overcoming the prevalence of the dominance of perspectives of economic policy of advanced economies also should be a focus area.
“I trust that she will maintain the commitment to future governance reforms, including increasing the number of Executive Board chairs. This would enhance the representation of emerging markets and developing countries and improve the legitimacy of this important global financial institution,” said Gordhan. – BuaNews
