A potential candidate for the job of eleventh head of the International Monetary Fund would need the backing of a major economic and political constituency, former Reserve Bank governor Tito Mboweni said on Thursday.
|||A potential candidate for the job of eleventh head of the International Monetary Fund (IMF) would need the backing of a major economic and political constituency, former Reserve Bank governor Tito Mboweni said yesterday.
National Planning Minister Trevor Manuel has been mooted as a possible successor to Dominique Strauss-Kahn, who resigned his position yesterday to concentrate on his coming trial in the US, where he faces charges of sexual assault. John Lipsky, the acting managing director, is due to retire in August.
Mboweni, who worked closely with Manuel when the latter was finance minister, said he was an “excellent candidate” with “the skills, the depth and the stamina for the job”. He said: “There is no doubt about his capability – but capability isn’t the only issue. It boils down to political power in the global sphere. It would be very unfair to put (Manuel’s) name up carelessly for the post.”
He suggested Manuel would have to emerge as a consensus candidate from within the Brics grouping of Brazil, Russia, India, China and South Africa and have the backing of the African constituency to stand a chance. In April, South Africa joined the Bric group of emerging economies that have established themselves as a bloc with growing global economic power over the past decade.
“It is a huge exercise and needs huge resources and serious diplomacy,” Mboweni said, referring to the process of putting someone forward for the job. “A potential candidate would have to go around the world to mobilise support, particularly in the US and the EU.”
The US, the largest member of the IMF, has 16.8 percent of the vote. Japan has 6.26 percent, while Germany, France and the UK have 14.43 percent between them. Among emerging economies, only China is anywhere near that league with 3.82 percent, while Russia has 2.4 percent. Other Brics members have their say through a larger grouping of countries.
According to former trade and industry minister Alec Erwin, who lobbied alongside Manuel for a greater role for emerging economies in the world bodies, for Manuel to succeed the government would have to back him.
“It’s often not up to the individuals but the country.”
Finance Minister Pravin Gordhan called for “a candidate from a developing country to be given the opportunity to be the head of the IMF”. The post has traditionally gone to Europe since the inception of the IMF after World War II.
Abdullah Verachia, a director at consultancy Frontier Advisory, and Peter Draper, a senior research fellow at the SA Institute of International Affairs, both noted that Manuel would be up against stiff competition for the job, including from the developing world.
Among the candidates are Singapore’s Finance Minister Tharman Shanmugaratnam and former Turkish Economy Minister Kemal Dervis, according to Bloomberg.
Draper said he thought the Brics’ vote was likely to split.
Verachia said Manuel’s long stint as finance minister and his track record in the job gave him an advantage and Gordhan’s backing was “influential”. He said Manuel had played an important role getting emerging markets firmly into the global arena and could probably count on support from African countries and some emerging markets outside of Brics.
Dumisa Jele, spokesman for Manuel, said the minister had opted not to comment as there had been nothing concrete or formal to comment on. “Events are unfolding far from us.”
He referred also to government’s “internal processes” and said Manuel would have to speak to President Jacob Zuma.
The IMF, announcing the resignation of Strauss-Kahn, said on its website the IMF’s executive board could select a managing director by a majority of votes, but in the past made appointments by consensus. “During the most recent selection round in 2007, the board established the additional criteria for that selection process,” the website stated.
These include a distinguished record in economic policymaking at senior levels; an outstanding professional background; and managerial and diplomatic skills. - Business Report
Source: http://www.iol.co.za/manuel-needs-brics-and-africa-1.1071403
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