Tuesday, July 10, 2007

IMF: Managing Director Selection Update

As noted yesterday, EU Finance Ministers met today, and, as predicted, they agreed to back Dominique Strauss-Kahn for IMF Managing Director, succeeding Rodrigo de Rato. The EU's Portuguese Presidency is quoted, as follows: "Ecofin agrees to support Dominique Strauss-Kahn for IMF director." The EU acted quickly in order to preempt any internal squabbling that might open the door for a non-European candidate. The next move belongs to developing countries, such as Brazil and South Africa, which have opposed the non-transparent and restrictive appointments processes at the major international financial institutions.

UPDATE: The IMF Executive Board met yesterday and issued the following statement:

The IMF's Executive Directors met informally on July 9 to begin the process for the selection of the Managing Director to succeed Mr. Rodrigo de Rato when he steps down. Under the Articles of Agreement, the IMF's Executive Board is responsible for the selection of the Managing Director of the Fund. Any Executive Director may submit a nomination, regardless of nationality, for the position, consistent with past practice.

Directors will meet again to finalize the selection procedure expeditiously to ensure a timely decision in an open and transparent manner, consistent with the Fund's Medium-Term Strategy.