Europe has headed the International Monetary Fund for the past 65 years. However, since the resignation of former French IMF Managing Director, Dominique Strauss-Kahn following is arrest in New York, there is increasing pressure from emerging economies for the top job, including South Africa, and Mexico. Today, Bank of Mexico governor Agustin Carstens was proposed as a candidate to replace Strauss-Kahn.
Mexican Finance Minister Ernesto Cordero who nominated Carstens said in a statement that “Mexico has maintained that the selection process of heads of international organizations such as the IMF should be open, transparent and based on merit”.
The nomination period for a new IMF successor began today and will end on June 10.
While the emerging economies have increasingly proposed the idea of an IMF leader from their region due to the growing importance of their markets, Europe believes the next IMF Chief should remain a European in these times of crisis in Europe.
French Finance Minister Christine Lagarde is the main front runner for the job and if selected, will be the first woman to ever hold the position. She has been praised for her leadership skills during Franc’s presidency of the G20. She is being backed by the UK, Germany and Italy so far.
The IMF plans to name the new IMF Managing Director by the end of June.