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Singapore - Asia's fast-rising economies set their sights on
securing key IMF appointments under newly named chief Christine Lagarde on
Wednesday, hopeful she would be the one to make good on oft-heard pledges to
swing more power to emerging markets.
Lagarde said all the right things on her recent
campaign-trail tour of Asia. She acknowledged that countries such as China and
India deserve increased IMF voting power commensurate with their growing
economic clout, and a fair shot at the emergency lending institution's top
decision-making posts.
"Lagarde is a friend of India," a senior Indian
government source said. "We can't get the IMF managing director's chair
for now but at least India can get some high-level appointments in the IMF
during her tenure and we will work towards that."
Lagarde begins her five-year term as managing director of the International Monetary Fund on July 5, and will find herself immediately immersed in efforts to head off a Greek debt default that could spark an international crisis.
High on her to-do list within the Fund will be appointing a
top leadership which fairly reflects global economic influence, and shepherding
through an already agreed process to reallocate IMF voting rights to give
emerging markets greater say.
Lagarde received support from many major Asian economies
even though she perpetuates a pattern they despise of Europeans holding the top
IMF job. No Asian candidate stepped forward to challenge Lagarde and Mexico's
Agustin Carstens.
"Lagarde has been more successful in consensus building
to bridge relationships between advanced countries and emerging markets,"
Indonesia's central bank deputy governor Hartadi A. Sarwono told Reuters.
She will need those skills for the difficult personnel
decisions. The United States is already considering putting forward a Treasury
Department official for the No. 2 role, which has traditionally been filled by
an American.
Breaking with that tradition might help convince Asian
countries that Lagarde is serious about reforming the IMF, although there was
no indication that she had made any promises to award the second-in-command
role to someone from Asia.
Singapore Finance Minister Tharman Shanmugaratnam, who also
chairs the IMF's steering committee, said he had spoken to Lagarde about the
importance of IMF reforms that "reflect the evolving balance in the global
economy and financial system."
Even countries that had backed Lagarde's challenger,
Carstens, pledged their support. Australian Treasurer Wayne Swan said he had
worked with Lagarde through the Group of 20 club of rich and emerging
countries, and welcomed her appointment.
"We're very happy to see the process concluded so this
important institution can continue its work," Swan said through a
spokesperson.
