Strauss-Kahn still likely to win IMF role
Monday, 16 July 2007
Krishna Guha in Washington, Christopher Adams in London and Pan Yuk in Paris
THERE would be no swift coronation of Dominique Strauss-Kahn as the next managing director of the International Monetary Fund, experts said late last week, following the conclusion of a hard-fought IMF board meeting in Washington.
But the Frenchman still looked very likely to win the post, analysts agreed, with no guarantee he would even face a competitor for the job. People familiar with the board meeting last Thursday said it saw tough negotiations between supporters of Mr Strauss-Kahn -- who was endorsed by the overwhelming majority of European Union finance ministers as the EU candidate -- and others determined not to be bounced into accepting his candidacy. France, with European allies, faced down a proposal from developing countries led by Egypt to set up an executive search committee that would actively solicit candidates in addition to Mr Strauss-Kahn.
However, Britain and a group of developing countries overcame French resistance to a long nomination period (until August 31), a pledge that the IMF would choose the next managing director based on specific criteria and new language declaring the job open to all nationalities.
Some reports suggested that the Netherlands and Norway backed this process. The board resolved to consider all candidates nominated in September on the basis of the "candidate profile" set out "without geographical preferences".
Europe has always chosen one of its own citizens to be managing director of the IMF since its inception as part of an unwritten convention by which the US selects one of its citizens to be president of the World Bank. French officials declined to comment on the IMF decision last Friday. Nicolas Sarkozy, French president, had earlier said that Mr Strauss-Kahn would start lobbying for support outside Europe.
One option would be for him to try to cement the momentum behind his candidacy with a lengthy international tour similar to that undertaken by Robert Zoellick prior to his confirmation as World Bank president. The UK Treasury said it was "pleased that the IMF board has agreed to take forward a transparent and open process for the appointment including the publication of assessment criteria".
Guido Mantega, Brazil's finance minister, issued a statement saying his country wanted the next managing director to be chosen "without restrictions on nationality", backing earlier calls by South Africa, Canada and Australia. Mohammed El-Erian, the Egyptian head of Harvard Investment Management, who has ruled himself out as a possible candidate, said the statement was an "important step" towards truly merit-based selection.
But he said it was "ambiguous" whether the board had done enough to encourage a rival candidate to come forward this time.
.........................................
FT Syndication Service
THERE would be no swift coronation of Dominique Strauss-Kahn as the next managing director of the International Monetary Fund, experts said late last week, following the conclusion of a hard-fought IMF board meeting in Washington.
But the Frenchman still looked very likely to win the post, analysts agreed, with no guarantee he would even face a competitor for the job. People familiar with the board meeting last Thursday said it saw tough negotiations between supporters of Mr Strauss-Kahn -- who was endorsed by the overwhelming majority of European Union finance ministers as the EU candidate -- and others determined not to be bounced into accepting his candidacy. France, with European allies, faced down a proposal from developing countries led by Egypt to set up an executive search committee that would actively solicit candidates in addition to Mr Strauss-Kahn.
However, Britain and a group of developing countries overcame French resistance to a long nomination period (until August 31), a pledge that the IMF would choose the next managing director based on specific criteria and new language declaring the job open to all nationalities.
Some reports suggested that the Netherlands and Norway backed this process. The board resolved to consider all candidates nominated in September on the basis of the "candidate profile" set out "without geographical preferences".
Europe has always chosen one of its own citizens to be managing director of the IMF since its inception as part of an unwritten convention by which the US selects one of its citizens to be president of the World Bank. French officials declined to comment on the IMF decision last Friday. Nicolas Sarkozy, French president, had earlier said that Mr Strauss-Kahn would start lobbying for support outside Europe.
One option would be for him to try to cement the momentum behind his candidacy with a lengthy international tour similar to that undertaken by Robert Zoellick prior to his confirmation as World Bank president. The UK Treasury said it was "pleased that the IMF board has agreed to take forward a transparent and open process for the appointment including the publication of assessment criteria".
Guido Mantega, Brazil's finance minister, issued a statement saying his country wanted the next managing director to be chosen "without restrictions on nationality", backing earlier calls by South Africa, Canada and Australia. Mohammed El-Erian, the Egyptian head of Harvard Investment Management, who has ruled himself out as a possible candidate, said the statement was an "important step" towards truly merit-based selection.
But he said it was "ambiguous" whether the board had done enough to encourage a rival candidate to come forward this time.
.........................................
FT Syndication Service