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NewsDay

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EU-developing world clash over IMF post

World Business
The European Union and developing world are on a collision course over the appointment of the next International Monetary Fund (IMF) managing director to replace disgraced Frenchman Dominique Strauss-Kahn. Strauss-Kahn resigned after being charged with attempted rape of a housekeeper in a New York hotel. In a joint statement on Tuesday, IMF executive directors representing […]

The European Union and developing world are on a collision course over the appointment of the next International Monetary Fund (IMF) managing director to replace disgraced Frenchman Dominique Strauss-Kahn.

Strauss-Kahn resigned after being charged with attempted rape of a housekeeper in a New York hotel.

In a joint statement on Tuesday, IMF executive directors representing Brazil, Russia, India, China and South Africa (Brics) said the appointment of managing director based on nationality undermined the legitimacy of the fund.

“The recent financial crisis which erupted in developed countries underscored the urgency of reforming international financial institutions so as to reflect the growing role of developing countries in the world economy,” reads part of the statement.

“This requires abandoning the obsolete unwritten convention that requires that the head of the IMF be necessarily from Europe. We are concerned with public statements made recently by high-level European officials to the effect that the position of managing director should continue to be occupied by a European.”

President Robert Mugabe has on numerous occasions lashed out at the IMF for serving the interests of Western countries and imposing policies on developing countries.

France’s Finance minister Christine Lagarde has already emerged as frontrunner to take over the post.

“We believe that, if the fund is to have credibility and legitimacy, its managing director should be selected after broad consultation with the membership. It should result in the most competent person being appointed as managing director, regardless of his or her nationality,” Brics said.