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New IMF boss should look at needs of emerging economies

Malam Sanusi Lamido Sanusi, the CBN governor, has advocated that the new Managing Director of the IMF should consider the needs of emerging economies. Sanusi made this known while addressing newsmen on Wednesday in Abuja.

Former Managing Director of the IMF, Mr Dominique Strauss-Kahn, resigned his appointment last week after he was accused of “raping’’ a hotel maid. He is currently facing sex molestation charges.

“Mr Strauss-Kahn was very good for Africa, he is very good for the emerging markets and we do hope that whoever becomes the IMF Managing Director will be as responsive to those needs as Kahn has been.’’ On which country should produce Strauss-Kahn’’s successor, Sanusi said he did not know what criteria the Fund would adopt in its choice of a new IMF boss.

“I believe given the way the voting pattern is in the IMF today, its most likely that the next IMF Managing Director will be a European. Maybe the next one might change, but I think the Europeans will continue to be the frontrunners because in all likelihood, the United States and Europeans will vote for European candidates,’’ he said. Discussions have been on whether Asia, Latin America or Africa will emerge as the new IMF Managing Director.

Meanwhile IMF directors for five key emerging market economies have said it was time to scrap an “obsolete unwritten convention” that requires the head of the International Monetary Fund to be a European.

In a joint statement, IMF directors for China, Brazil, India, South Africa and Russia, or BRIC countries, criticized European officials for implying that the successor to former IMF head Dominique Strauss-Kahn should continue to be a European.

underscored the need to urgently reform international financial institutions to reflect the growing clout of developing countries in the world economy. “We believe that, if the Fund is to have credibility and legitimacy, its managing director should be selected after broad consultation with the membership,” the IMF directors said, adding that the new IMF boss should be chosen on the basis of competence, not nationality.


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