China said yesterday the new International Monetary Fund chief should be chosen through “democratic consultation”, as the developing world stepped up its campaign to end Europe’s hold on the job.
India and South Africa – which with Brazil, China and Russia are members of the so-called BRICS bloc of emerging economies – joined calls for reform of the process of choosing a managing director for the global emergency lender.
In a statement, China’s foreign ministry said it had “noted” the nomination of candidates for the post of IMF managing director after the resignation of Dominique Strauss-Kahn, who is facing sexual assault charges that he denies.
The statement faxed to AFP did not directly address the candidacy of French Finance Minister Christine Lagarde, who officially launched her bid Wednesday. A French government spokesman said Tuesday that Beijing would back 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”, without offering any evidence to back up his statement.
China’s backing would give a significant boost to Ms Lagarde’s bid, which has been opposed by some emerging nations in protest at the tradition of a European always heading the Washington-based IMF.
IMF directors from Brazil, Russia, India, China and South Africa on Tuesday slammed Europe’s push to lock up the IMF’s top job, calling its stranglehold “obsolete”.
Ms Lagarde told the Wall Street Journal in an interview yesterday that she was prepared to visit China, as early as Sunday, to drum up support for her bid.
“China, Brazil and India are an absolute necessity,” Ms Lagarde told the newspaper in an interview.
Sources close to Ms Lagarde said that she could travel to Brazil and China “in the coming days”, but that her travel plans had not yet been finalised.
Such a trip would allow Ms Lagarde “to make herself better known, to explain her candidacy and lobby”, the sources said.
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. By a convention dating back to its 1945 founding, the IMF has a European head while an American takes the top job at its sister body, the World Bank. But developing countries have said the arrangement is outdated.
The BRICS nations have yet to put forth a common candidate, and China has not suggested a candidate of its own.
South Africa yesterday insisted that the next IMF chief come from the developing world, but a government spokesman acknowledged that the country’s Cabinet had not discussed the name of potential candidates.
“There’s a lot of consultation that must happen with the various partners that South Africa is dealing with. Those consultations are happening,” the spokesman, Jimmy Manyi, told reporters.
India’s Finance Minister Pranab Mukherjee said he was coordinating with other emerging countries to back a common candidate.
“We are trying to consolidate our position,” Mr Mukherjee said.