IMF should adapt to changing world MyZA

Pretoria – The International Monetary Fund (IMF) should adapt to the changing world while also being ready and able to face challenges, says French Finance Minister Christine Lagarde.

Lagarde is one of two candidates for the position of managing director of the Fund who this week underwent interviews for the top job vacated by Dominique Strauss-Kahn due to sexual assault charges in the US.

“Should you entrust me with the challenging task of MD, I would strive, over the next five years, to build a Fund that would be adapted to a changing world; responsive, ready and able to meet all challenges, both foreseeable and unforeseeable; cooperative, listening and coordinating effectively with all stakeholders, and continuously striving to build consensus; legitimate and even-handed, to reflect a changing world,” Legarde told the board of the fund.

Lagarde added that the legitimacy and effectiveness of the Fund cannot be taken for granted which must be continuously proved, and improved, whenever possible or necessary.

“The Fund needs however to continue its shift towards responsive, even-handed and balanced action in support of global economic and financial stability, the better to serve the whole membership,” she explained.

If appointed she committed herself to chair the board, manage staff and to represent the IMF.

“Beyond its primary mandate of ensuring the stability of exchange rates, the Fund needs to improve the integration of financial sector expertise into its surveillance, working in cooperation with the Financial Stability Board and other relevant bodies.”

On the matter that the top job traditionally has gone to a European, the French Minister said she represents the entire IMF membership and not the interest of any given region of the world.

“How would the Fund ensure that during the MD’s mandate, not one single country of the region from which the MD comes from would request financing? One thing is certain: it would eliminate both candidates in the current selection process, even though France has no arrangement with the IMF.”

“I stand here as a woman, hoping to add to the diversity and balance of this institution,” said Lagarde.

The other candidate for the job is Governor of the Bank of Mexico Agustin Carstens who was interviewed on Tuesday.

“These meetings have been an opportunity for both candidates to present to the Executive Board all relevant information concerning their respective candidacies,” dean of the board A. Shakour Shaalan said on Thursday.

The board plans on meeting next week to discuss the strengths of each candidate, with the aim of completing the selection process by June 30.

“Although the Board may select a Managing Director by a majority of the votes cast, the Board’s objective is to select the Managing Director by consensus in a formal meeting. The selection of the next Managing Director will be announced through a press release,” he said.

South Africa has for years been calling on the IMF to include leaders from developing nations. – BuaNews