John Lipsky says the IMF will deal with the leadership issue “expeditiously”
Germany’s finance minister says Europe will decide soon on a common candidate as its choice to lead the IMF.
“We need a common European candidate and we are looking for the one who is best qualified and has the best chance,” said Wolfgang Schaeuble.
A division has opened between the developed and developing world over who should replace Dominique Strauss-Kahn, who has resigned.
Emerging powers are keen to break Europe’s traditional hold on the post.
Mr Strauss-Kahn, who stepped down after being charged with sexual assault, was the fourth Frenchman to have held the IMF’s top job.
Another French national, finance minister Christine Lagarde, is seen as the favourite to be the next IMF managing director, and has been praised for her credentials by the interim head of the IMF, John Lipsky, the Italian government and the Swedish finance minister.
“If Europe can get the Americans on their side, then another European will replace Strauss-Kahn”
Read Stephanie’s blog in full NY court grants Strauss-Kahn bail
Germany has not put forward any suggested candidate and Mr Schaeuble said it had “not given up on presenting a candidate of its own”, but he said it was in favour of European countries taking a joint decision on whom to present.
South Africa, Thailand and Russia have all said the new head should come from the developing world.
Singapore’s finance minister, Tharman Shanmugaratnam, has attracted support from both the Philippine finance minister and his Thai counterpart.
Other potential candidates from developing countries include South Africa’s Finance Minister, Trevor Manuel, and Turkey’s former minister of economic affairs, Kemal Dervis.
There is a range of possible contenders for the top job at the International Monetary Fund. Find out about some of them
Christine Lagarde
French finance minister
France
If the post goes to a European, French Finance Minister Christine Lagarde, 55, looks like the leading candidate. A flawless English speaker, she was voted best finance minister in Europe by the Financial Times in 2009. Counting against her is her nationality since so many previous IMF chiefs have been French.
Peer Steinbrueck
Former German finance minister
Germany
Mr Steinbrueck, 62, is a long-shot to become IMF chief, in part because he alienated allies of Germany with his fiery rhetoric while serving as finance minister in conservative Chancellor Angela Merkel’s “grand coalition” from 2005 to 2009. He also alienated the United States by openly blaming it for the global financial crisis.
Axel Weber
Former head of Bundesbank
Germany
Mr Weber, 54, stunned Europe by announcing in February that he would be stepping down early from his post as head of the German central bank, the Bundesbank. Like Mr Steinbrueck, Mr Weber has a reputation as something of a loose cannon, who speaks his mind without regard to political or diplomatic constraints.
Kemal Dervis
Former economy minister
Turkey
Mr Dervis is credited with bringing Turkey back from the brink after a disastrous 2001 financial crisis, by pushing through tough reforms and helping secure a multi-billion dollar IMF bail-out. He had previously risen to vice-president at the World Bank. Seen as a leading candidate if the IMF post goes to someone outside central Europe.
Trevor Manuel
Ex Finance minister
South Africa
Mr Manuel, 55, is well-respected in global financial circles, having served as finance minister of South Africa from 1996 to 2009. Born in Cape Town under apartheid, he was imprisoned repeatedly by the South African government for political activities in the late 1980s.
Agustin Carstens
Governor Bank of Mexico
Mexico
Mr Carstens, 52, has spent most of his professional career as an economic policymaker in his home country, becoming governor of the Bank of Mexico in January of last year after previously serving as the bank’s chief economist. He had a successful stint at the IMF from 2003 to 2006.
Gordon Brown
Former UK Prime Minister
British
The 60-year old former UK prime minister and finance minister has long been seen as a candidate for the IMF job or another big international financial post. But his successor David Cameron – whose support he would need – has dismissed him as a “deficit denier”, adding that it was time to look beyond Europe.
Stanley Fischer
Israel’s central bank governor
Israel/United States
Mr Fischer, 67, knows the IMF well having served as the first deputy managing director at the fund from 1994 to 2001. A world-renowned economist, he has written more than a dozen books and headed the prestigious economics department at the Massachusetts Institute of Technology.
Montek Singh Ahluwlia
Economic adviser to India’s PM
India
Mr Ahluwalia, 67, is an influential economic adviser to Indian Prime Minister Manmohan Singh and has been a key figure in the country’s economic reforms from the mid-1980s onwards. He supports open markets and has pushed the government to end fuel price controls and remove barriers to foreign business. His age may count against him.
No individual has yet said they are interested in the job.
Ms Lagarde herself has not expressed an interest, but has backed the single candidate idea, saying that “any candidacy, whichever it is, must come from Europeans jointly, all together”.
In order to become managing director of the IMF individuals must be proposed by one of its 187 member countries.
All 10 of the IMF’s managing directors since its inception in 1944 have come from Europe, and Europe together with the US have almost 50% of the votes.
But the rules are being altered to reflect the rising power of emerging markets, and the US has not yet taken a position on who to back – nor from where.
The IMF is a crucial part of the world financial system, along with the World Bank.
It represents the interests of its 187 member countries and has played a central role in the eurozone crisis, lending billions of dollars to help bail-out Greece, Ireland and Portugal.
For this reason many senior politicians in Europe have said they believe the next head of the IMF should hold a European passport.
Interviewed by the BBC’s economics editor, Stephanie Flanders, Mr Lipsky, who was Mr Strauss-Kahn’s deputy until stepping up as interim head, would not be drawn on the battle that is emerging between central European and emerging economies over who should get the top job.
“This is an institution that works best in a collaborative, co-operative way. Most decisions are taken by consensus at the level of the executive board.
“So I’d expect, in the end, there will be general agreement around a talented, effective new managing director.”
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