PHL Finance chief: IMF must consider non-Europeans for top post

The International Monetary Fund (IMF) must consider choosing as head not only Europeans but also Asians, Latin Americans, and candidates from other emerging markets, Philippine Finance Secretary Cesar Purisima said on Wednesday. “Gone are the days when the future of the world economy is left in the hands of only a few countries," Purisima said. “The selection process for the new managing director of the IMF should be global in substance, not just in form." “In fact with the problems in Europe, it might be wise to get someone who is totally objective from the situation," he added. Purisima in particular vouched for the qualifications of Singapore Finance Minister Tharman Shanmugaratnam, who also serves as chair of the International Monetary and Finance Committee. In a separate interview with Bloomberg TV, Purisima said, “I think Minister Tharman is certainly well-qualified. As you all know, in the late 90s, Asia underwent its own debt contagion and I think that experience will come in handy in helping our European friends deal with their own debt crisis." Following charges of sexual assault and attempted rape against him, Dominique Strauss-Kahn resigned as IMF managing director on May 18. At least seven other names have been floated as possible successors to Strauss-Kahn. Purisima: Tough act to elect non-European Purisima expressed optimism that a candidate from Asia would take the post of IMF managing director. The secretary, however, conceded to the difficulty of having an Asian elected to the IMF top post, explaining that the institution’s weighted voting system allots more votes to developed nations. Only seven countries from Asia belong to the top 30 economies that enjoy majority of the IMF voting rights, he said. These countries include Japan with 6.3 percent of voting rights, China with 3.8 percent, Saudi Arabia with 2.8 percent, India with 2.4 percent, Korea with 1.4 percent, Indonesia with 0.9 percent, and Malaysia with 0.7 percent. At 16.8 percent, the United States possesses most of the voting rights. The Philippines only holds 0.4 percent. “That is why countries should have an open discussion on this. Developed nations should also have open minds while emerging markets should get their act together to come up with a lone Asian candidate that will lead the international organization," Purisima said. — PE/KBK, GMA News