The New Nation - Internet Edition

NEW IMF chief Dominique Strauss-Kahn slammed the system for deciding the top jobs both at his organisation, International Monetary Fund and the World Bank, according to an AFP news agency report from Paris. The 58-year-old former socialist French finance minister and a presidential candidate won the executive board's 'consensus' nod and is due to take office as IMF-managing director on November 1 next. He will succeed Rodrigo Rato of Spain, the shortest-serving managing director in IMF history and announced suddenly in June last that he would step down for 'personal reasons'. Under a longstanding agreement, the United States names the head of the World Bank and Europe places as candidate at the top of the IMF - a carve-up that has irked other members of the multilateral institutions.

'The tacit agreement between the Americans, who reserve themselves the management of the World Bank, and the Europeans who place one of their own at the head of the IMF, has no reason to exist any more', Strauss-Kahn was quoted to have said in an interview with French newspaper Le Monde. According to him, a candidate from any one of the 185 member states must be able to direct the fund if he has the competency. He has already worked to outline his plans to reform the IMF as reported by media. The IMF created in 1944 is seeking to redefine its role in a globalising world reshaped by the rising economic clout of developing countries like China, India and Brazil. Strauss-Kahn has pledged to implement immediate reforms of the institution, which bails out countries in crisis but faces its own crisis of relevancy and legitimacy in a world flush with cash and access to capital.

The new IMF chief is in favour of overhauling voting practices in the institution to increase the influence of emerging countries. He has proposed that a handful of crucial decisions be taken with double majority voting to ensure they command unquestionable support from all members. Under the present system, decisions are approved with a simple majority of votes, but this favours rich countries because of a quota system that awards votes based on the amount of money contributed to the IMF. As next head of the IMF, Strauss-Kahn faces the daunting task of redefining a 185-nation institution increasingly seen as 'irrelevant' and he would have to move to play a role at this critical juncture for its survival. 'I am determined to pursue without delay the reforms needed for the IMF to make financial stability, serve the international community, while fostering growth and employment', media quoted him as saying. The new IMF chief has promised to fulfil 'at least' a five-year mandate to carry through reforms to redefine the institution and resolve a financial crisis due to a steep decline in the demand for loans, whose interest payments help pay for operations.