Who needs Mr Strauss Khan’s resignation?
Mr Strauss-Kahn’s withdrawal from his position of Managing Director of the International Monetary Fund followed growing pressure from the US and other governments to step down after he was charged in New York City last weekend.
The IMF’s executive board, on which European countries hold just over 30 per cent of the votes, will very likely appoint the next managing director within a month or two, with candidates selected by IMF member countries. The US holds another 17 per cent. Governments’ officials from Europe, which has provided every managing director since the IMF started to operate in 1946, said that the problems in western European economies pressed for the tradition to be prolonged.
However, the US is likely to play a key role in determining the nomination. Tim Geithner, US Treasury secretary, last Thursday released a short declaration expressing confidence in John Lipsky, the IMF’s second-in-command who has automatically become acting managing director, and calling for “an open process that leads to a prompt succession” to designate a new head.
Emerging market governments, including China and Brazil said they wanted a fair and open process, and some said they would favor an entrant from a developing country, but most refrained of backing a particular candidate.
Finance officials say the most likely non-European nominee is Kemal Dervis, a former Turkish economy minister.
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