Mexican Candidate For IMF Post Cites Underrepresentation Of Emerging Market Countries

News Americas, WASHINGTON, D.C., Fri. June 24, 2011: Mexico’s choice for Managing Director of the International Monetary Fund, Agustín Carstens, insists the body has failed to address the underrepresentation of emerging market countries and developing countries.

Carstens, in an address to the IMF Executive Board on June 21, told members that emerging market countries have been reliable partners during the last decade but there is no adequate voice and representation on the Board.

He said increasing the number of Executive Board chairs held by emerging markets and ensuring their adequate and merit-based participation at all levels of staff and management would ensure that the vast policymaking experience benefits the global community.

Carstens, who is one of two candidates being considered to replace accused sex offender and former managing director, Dominique Strauss Kahan, added that quota redistribution must continue in favor of emerging and developing countries.

“The next Managing Director will need to address four remaining fundamental weaknesses: governance; the ability to perform appropriate surveillance (both at the national and multilateral levels) and prevent crises; the capacity to effectively support crisis resolution; and, finally, the competence to induce policy coordination at the global level,” said Catstens. “Failure to address these issues risks diminishing the IMF’s relevance and alienating its membership.”

And he urged: “It is vital that the Fund send the strongest signal that, by virtue of its leadership, it is not lagging behind, but one step ahead of global developments, so that it may continue to flourish in serving all of its members.”