Thursday, May 26, 2011

國際貨幣基金組織 / International Monetary Fund IMF

Given that China is an emerging global economic power, what is PRC's view on the vacant Managing Director position of the International Monetary Fund (IMF)?

To answer that question, I am posting below an article from AFP and a statement from China's Foreign Ministry.


IMF succession: China urges 'democratic' process
AFP May 26, 2011

BEIJING (AFP) — China said Thursday it hoped the choice of a new International Monetary Fund chief would be made based on "democratic consultation", as the battle to succeed Dominique Strauss-Kahn heats up.

China's foreign ministry said in a written statement faxed to AFP that it had "noted" the nomination of candidates for the post of IMF managing director, after the resignation of Strauss-Kahn, who is facing sexual assault charges, which he denies.

The statement did not comment directly on the candidacy of French finance minister Christine Lagarde, who officially launched her bid on Wednesday. A French government spokesman said Tuesday that Beijing would support her.

The Chinese foreign ministry reiterated that the decision should be based on "openness, transparency and merit, and better represent emerging markets and better reflect changes in the world economic structure".

"China has noted that relevant countries have nominated some candidates for the position of IMF managing director," the ministry said.

"China hopes that all parties would come to a decision through democratic consultation based on the above-mentioned principle."

On Tuesday, France's chief government spokesman Francois Baroin said China was "favourable to the candidacy of Christine Lagarde".

China's backing would give a significant boost to Lagarde's bid, which has been opposed by some emerging nations in protest at the tradition of a European always heading the global emergency lender.

But the IMF directors from Brazil, Russia, India, China and South Africa -- the so-called BRICS emerging economies -- on Tuesday slammed Europe's push to lock up the IMF's top job, calling its stranglehold "obsolete".

The IMF has said it would like to make a choice by the end of June, based on consensus among the 24 executive board directors, or possibly by a vote.



China's Foreign Ministry Spokesperson Jiang Yu's Regular Press Conference on May 24, 2011

Q: The French Government said that China expressed support for French Finance Minister Lagarde as a candidate for IMF chief. Would you please confirm?

A: Head of the competent authority of China responded to the issue of candidacy for IMF chief last week. Please refer your specific follow-up questions to the competent authority.


Related links: An earlier article from The Times of India

Say no to backroom deals

May 26, 2011, 12.00am IST

Following Dominique Strauss-Kahn's exit, it's a race for IMF's top job. While Christine Lagarde's jumped into the ring, India and other developing nations are seeking to build consensus on an emerging market candidate. Disturbingly, Lagarde's appointment is being pitched as an eventual fait accompli. India's representative at IMF Arvind Virmani has been quoted as saying the post-filling process is being rushed even as emerging economies are exploring a possible coordinated stand. Surely, in a changed world order, economic powerhouses like India and China don't need to accept done deals on the leadership of global financial institutions.

Developed nations publicly say global decision-making must be democratised to reflect 21st century realities. Will they put their money where their mouth is? In 2009, G20 pledged "an open, transparent and merit-based selection process" to choose IMF and World Bank heads. With reason. For over 60 years, Europe's monopolised IMF's stewardship while the US sits entrenched atop the bank. This cosy arrangement was fine when the West's clout was unchallenged. That's no longer the case. More so, in the post-Lehman world where emerging economies have helped the West beat recession's blues by driving growth, providing markets and offering investment havens.

A stakeholder in the status quo, Germany argues IMF's top job must go to a European qualified to handle Eurozone's crisis. That is to assume non-Europeans - irrespective of expertise and competence - can't assess and tackle global challenges. By the same insular logic, developing nations can reject western prescriptions on domestic issues. Is nationality or race to power global economic management? BRICS has rightly criticised nationality-based leadership as eroding IMF's legitimacy. Emerging economies must now put up a meritorious candidate even if the battle is lost in the final bout. It'll serve as strong protest against bullying and opacity in global decision-making.



Wikipedia: 國際貨幣基金組織

"....國際貨幣基金組織(International Monetary Fund,IMF)於1945年12月27日成立,為世界兩大金融機構之一,職責是監察貨幣匯率和各國貿易情況、提供技術和資金協助,確保全球金融制度運作正常;其總部設在華盛頓。..."

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