The Executive Directors of the BRICS countries - Brazil, Russia, India, China and South Africa - at the International Monetary Funds published a statement of concern on the selection process of the next Managing Director of the fund. The next Director should be a person that is committed to continuing the process of change and reform of the institution so as to adapt it to the new realities of the world economy, the statement says.
Statement by the IMF Executive Directors Representing Brazil, Russia, India, China and South Africa on the Selection Process for Appointing an IMF Managing Director
24 May 2011
We, as Executive Directors representing Brazil, Russia, India, China and South Africa in the International Monetary Fund (IMF), have the following common understanding concerning the selection of the next Managing Director of the International Monetary Fund:
1) The convention that the selection of the Managing Director is made, in practice, on the basis of nationality undermines the legitimacy of the Fund.
2) The recent financial crisis which erupted in developed countries, underscored the urgency of reforming international financial institutions so as to reflect the growing role of developing countries in the world economy.
3) Accordingly, several international agreements have called for a truly transparent, merit-based and competitive process for the selection of the Managing Director of the IMF and other senior positions in the Bretton Woods institutions. This requires abandoning the obsolete unwritten convention that requires that the head of the IMF be necessarily from Europe. We are concerned with public statements made recently by high-level European officials to the effect that the position of Managing Director should continue to be occupied by a European.
4) These statements contradict public announcements made in 2007, at the time of the selection of Mr. Strauss-Kahn, when Mr. Jean-Claude Junker, president of the Euro group, declared that “the next managing director will certainly not be a European” and that “in the Euro group and among EU finance ministers, everyone is aware that Strauss-Kahn will probably be the last European to become director of the IMF in the foreseeable future”.
5) We believe that, if the Fund is to have credibility and legitimacy, its Managing Director should be selected after broad consultation with the membership. It should result in the most competent person being appointed as Managing Director, regardless of his or her nationality. We also believe that adequate representation of emerging market and developing members in the Fund’s management is critical to its legitimacy and effectiveness.
6) The next Managing Director of the Fund should not only be a strongly qualified person, with solid technical background and political acumen, but also a person that is committed to continuing the process of change and reform of the institution so as to adapt it to the new realities of the world economy.
Aleksei Mozhin, Executive Director (Russia) Arvind Virmani, Executive Director (India) Jianxiong He, Executive Director (China) Moeketsi Majoro, Executive Director representing South Africa Paulo Nogueira Batista Jr., Executive Director (Brazil)
Posted: 25 May 2011
Recommended citation: Statement (2011) 'BRICS Executive Directors at IMF concerned', World Economy & Development In Brief, 25 May 2011, Luxembourg (www.wdev.eu)
Weakening of workers' rights in most regions is being aggravated by severe crackdowns on freedom of speech and assembly, according to the 2016 Global Rights Index. Restrictions on freedom of speech and assembly, including severe crackdowns in some countries, increased by 22%, with 50 out of 141 countries surveyed recording restrictions.
The year 2015 was marked on the one hand by the inability of the European Union (EU) to emerge from the crisis, and on the other by a dramatic rise in the number of people taking flight from their homes and from their homelands, because of wars and terrorist attacks, in many cases caused by the destructive policies of the EU and of its member states.
The world economy stumbled in 2015 and only a modest improvement is projected for 2016/17 as a number of cyclical and structural headwinds persist, says the United Nations World Economic Situation and Prospects (WESP) 2016 report. Global growth is estimated at a mere 2.4% in 2015.
Within a few weeks leftwing governments in Latin America have experienced a breath-taking decline. The Latin American (centre-) left forces suffered several strategic defeats. They occurred in the biggest Latin American economies. First in Argentina, than in Venezuela, and also in Brazil the days of an uncontested majority of left forces are definitely over now.
14 years after their previous strategy on gender mainstreaming, the WBG has decided to develop a new Gender Equality (GE) Strategy. This briefing document presents WIDE+ critical reflections and key recommendations to enhance the new World Bank Group's (WBG) strategy on Gender Equality.