Vittorio Hernandez – AHN News

New York, NY, United States (AHN) – The battle to fill the top International Monetary Fund post vacated by the resignation of Managing Director Dominique Strauss-Kahn has apparently been reduced to a war between Europe and developing nations.

Mexico’s Central Bank Governor, Agustin Carstens, took the struggle to a higher level on Tuesday by seeking the vote of developing countries to counter the solid support enjoyed by French Finance Minister Christine Lagarde from European nations.

Even the U.S. is apparently siding with Europe’s choice in a tit-for-tat political arrangement to ensure Washington keeps its grip on the top spot at the World Bank and the number two post in IMF.

Carstens criticized European leaders for imposing Lagarde on the rest of the world. The governor said that if the selection of Strauss-Kahn’s replacement would be treated as “business as usual,” changes would never take place.

Carstens pointed out that although there was no final list of candidates yet for the IMF managing director post, Europe has made up its mind in backing Lagarde. The IMF will close application for the position on Friday.

Lagarde, however, is also courting the vote of developing nations despite being frontrunner of the race. She met with Indian officials as part of her world tour to seek their support for her candidacy. The French minister even promised to represent the needs of emerging economies by partly “becoming an Indian.”

Lagarde will next try to convince Chinese officials to back her up, based on her merit. Carstens is holding his global tour and plans to court the votes of Indian, Chinese and Japanese officials.

Indian Finance Minister Pranab Mukherjee said he agreed with Lagarde that the next IMF managing director should be picked based on merit and not geography. But he declined to indicate if India would support Lagarde or Carstens.

The IMF is expected to name Strauss-Kahn’s successor by the end of June. Another rival of Carstens and Lagarde for the position is South African former Finance Minister Trevor Manuel.

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