[stop-imf] Dissension at IMF - Comments from the IMF, WPost, BWP

[Robert Weissman]

Press Release No. 04/55
March 19, 2004
International Monetary Fund
700 19th Street, NW
Washington, D.C. 20431 USA

Statement by a Group of IMF Executive Directors on the Selection Process
for a New Managing Director

A group of IMF Executive Directors made the following statement today on
the selection process for a new Managing Director.

"The G-11 Executive Directors, representing emerging and developing
countries from Asia, Africa, Latin America, and the Middle East, joined
by a group of Executive Directors from Australia and Switzerland, who
each represent a range of countries, along with the Executive Director
from the Russian Federation-well over 100 countries-met today to discuss
the selection process for a new Managing Director of the IMF, arising
from the resignation of Mr. Horst K=F6hler.

1. The above group is of the strong view that the candidate nominated
for the position must be an eminent person, familiar with the goals of
the institution.

2. The process of identifying and selecting the candidate must be open
and transparent, with the goal of attracting the best person for the
job, regardless of nationality. A plurality of candidates representing
the diversity of members across regions would be in the best interest of
the Fund.

3. All members of the Executive Board should be consulted in the process
of considering candidates that lead to the selection of the Managing
Director and informed in a timely manner regarding candidates, including
their credentials and knowledge of the institution."


IMF EXTERNAL RELATIONS DEPARTMENT
Public Affairs: 202-623-7300 - Fax: 202-623-6278
Media Relations: 202-623-7100 - Fax: 202-623-6772

-------------------------

washingtonpost.com

At the IMF, Discord on How to Pick Next Chief

By Paul Blustein
Washington Post Staff Writer
Monday, March 22, 2004; Page A11

In an unusual show of dissension within the board of the International
Monetary Fund, directors representing more than 100 countries have
issued a public statement calling for the next IMF managing director to
be chosen "regardless of nationality."

The statement, in a press release issued by the IMF on Friday, was a
rebuke aimed at Europe and the United States for a longstanding
arrangement in which the top job at the IMF has always gone to a
European and the presidency of the World Bank has always gone to an America=
n.

Controversy over the method of choosing the IMF and World Bank
leadership has mounted since the surprise resignation of Horst Koehler
from the IMF's managing directorship on March 4 to run for president of Ger=
many.

European officials have made it clear that they expect Koehler's
successor to come from their ranks, and a number of them have signaled
their preference for Rodrigo Rato, the finance minister in Spain's
outgoing government. The newly elected Socialist government in Madrid
has said it would back Rato's candidacy. But the selection process
involves backroom dealings among European finance ministries, and some
European news organizations have reported that France may oppose Rato.

This process has drawn criticism for years from economists, editorial
writers and non-governmental organizations as an arbitrary system for
appointing the chief executives at two of the world's most powerful
institutions. Many insiders expect it to prevail again, because both
U.S. and European officials value the control that the selection process
affords them, and together they hold a majority of votes on the board.
Votes of board members at the IMF and World Bank are weighted based on
the size of the countries' financial contributions.

The statement issued Friday showed that the countries excluded from this
arrangement intend to register a strong protest. It came from a group of
directors calling itself the "G-11," representing just less than half
the 24 IMF board members. The directors represent "emerging and
developing countries from Asia, Africa, Latin America and the Middle
East," the statement said, plus directors from Australia and
Switzerland, which represent several countries each, plus the director
from Russia.

"The process of identifying and selecting the candidate must be open and
transparent, with the goal of attracting the best person for the job,
regardless of nationality," the statement said.

The statement was welcomed by IMF critics who complain the IMF tilts its
policies toward the interests of rich nations at the expense of the
developing world.

"This is an unprecedented challenge coming from within the IMF's own
Board of Directors," said Soren Ambrose of the 50 Years is Enough
Network, in an e-mail. "I am unaware of any previous instance where a
significant group of Board members has issued a public statement calling
on the board as a whole -- and the most powerful members of the board as
individual actors -- to change their behavior."

=A9 2004 The Washington Post Company


----------------

Emerging split demonstrates need to end IFI leadership carve-up

With two weeks to go before a 2 April meeting of the Economic and
Finance Mininsters' Council in Brussels to decide the European candidate
to replace outgoing Managing Director of the IMF Horst Koehler, the
backroom horse trading has begun in earnest.

http://brettonwoodsproject.org/article.shtml?cmd[126]=3Dx-126-40571

Jeff Powell
Communications & Research Officer

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