China pushes emerging nations after IMF head resigns

19th May 2011, Comments 0 comments

China Thursday pushed for emerging countries to be included in the top leadership of the International Monetary Fund, after the resignation of embattled chief Dominique Strauss-Kahn.

"We have noted the relevant situation and are closely following developments," foreign ministry spokeswoman Jiang Yu said when asked about who should succeed Strauss-Kahn, now facing sexual assault charges in New York.

"In principle, we believe that newly emerging markets and developing countries should be represented in the top leadership," she said.

"We always believe that the IMF should... select successors on the principles of impartiality, transparency and merit."

Strauss-Kahn, a leading French politician, is in jail awaiting a grand jury decision on whether to indict him on charges linked to the alleged sexual assault and attempted rape of a chambermaid at a Manhattan hotel.

The 62-year-old resigned earlier Thursday. He has denied all seven counts of alleged sexual assault and attempted rape, as well as unlawful imprisonment.

The IMF, formed after World War II to remake the world financial system and prevent a 1930s-style Depression, has long been dominated by Western powers but has faced growing calls to adapt to a changing global reality.

G20 leaders agreed last November to reform the Fund's 24-member board of governors, in a move designed to give emerging economies such as China a bigger say.

Europe agreed to give up two seats, and Brazil, Russia, India and China were to be among the top 10 IMF shareholders, with China moving up to become the third-largest shareholder from sixth place.

But those changes have not yet been implemented.

The scandal involving Strauss-Kahn comes at a critical time for the IMF, amid delicate negotiations to help overcome the eurozone debt crisis.

"The Fund will communicate in the near future on the executive board's process of selecting a new managing director. Meanwhile, Mr John Lipsky remains acting managing director," the IMF said.

© 2011 AFP

0 Comments To This Article