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New Delhi - The Brics group of fast-growing economies has
yet to build consensus behind an emerging markets candidate to head the
International Monetary Fund (IMF), two Indian sources said, a sign that efforts
to nominate a joint candidate may be losing steam.
In a statement on May 24, the Brics countries had sharply
criticised European officials for suggesting the next IMF head should
automatically be a European, and that efforts were being made for a common
Brics or emerging markets candidate.
“There is no signal so far” of support around a common
candidate, a senior Indian government official said on Friday, adding that
discussions were still ongoing.
The Brics grouping is made up of Brazil, Russia, India,
China and South Africa.
Emerging markets powerhouses, including China and India, have
long clamoured for more clout within the IMF, in line
with their growing economic strength.
French Finance Minister Christine Lagarde visited Brazil
this week as part of a tour to build support for her candidacy that will also
take her to India, China, Russia and Saudi Arabia. The Indian source said she
will visit on June 7.
Lagarde will meet with African counterparts on June 10 in
Portugal at a meeting of the African Development Bank, her official agenda
showed on Friday.
The Indian source said Mexico’s candidate for the IMF top
job, central bank governor Agustin Carstens, will also visit India but no date
has been set. He was in Brazil this week.
“If there is no consensus among the Brics, India will take its stand to support a candidate on a merit basis, who is open to our concerns regarding quota reforms,” said another government source, who is advising the government on the issue.
The IMF has a June 30 deadline to pick a successor.
India has been talking with other emerging countries to
build support behind a common candidate from the developing world, with
Carstens a possibility, two Indian government sources said last week.
However, the Group of Eight bloc of leading economies - which
includes Brics member Russia - endorsed Lagarde’s
candidacy at a recent meeting, while senior French officials have reiterated China’s support for the French minister - developments which seem to have undermined the Brics' show of unity.
Brazil has welcomed Carstens' candidacy but has stopped
short of offering an endorsement, saying that it needed more time to decide on
which candidate to back.
“India would listen to both the candidates when they visit
India, and will take its stand at the appropriate time,” said the second
source.
Lagarde and Carstens have confirmed they are candidates to
head the IMF, the main institution overseeing global financial stability.
The top IMF job fell vacant after Dominique Strauss-Kahn was
arrested and charged last month with attempted rape of a maid in a New York
hotel. He has denied the charges.
His resignation has led to calls from developing countries to end Europe’s traditional hold on the job.
