India presses Lagarde on more voice in IMF for emerging economies

By Arun Kumar, IANS,

Washington: Finance Minister Pranab Mukherjee has expressed the hope that under the leadership of Chritine Lagaarde, the International Monetary Fund (IMF) will deal effectively and fairly with the serious challenges which confront the global economy.


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“A robust and sustained global economic recovery is a priority for all of us, as is the task of carrying forward the process of reform to ensure that emerging economies have a greater voice in the decision making processes of the IMF,” he said in a letter of felicitation and good wishes to her.

Her selection by consensus “reflects the high regard in which she is being held by the different countries of the world at large,” he told Lagarde, currently the French Finance Minister, who has been chosen the head of IMF with the support of US, India and some other emerging economies.

“There is expectation that, under her leadership, the IMF will deal effectively and fairly with the serious challenges which confront the global economy,” Mukherjee wrote.

Asked at an interaction with Indian media Wednesday if he was happy with the selection of Lagarde over Mexican central bank governor Agustin Carstens, he said: “Of course. We had made clear we will be part of the consensus that was forming around her.”

“She is eminently suited for the job. The other candidate was also eminently suited. But when you have two candidates, you have to pick one,” Mukerjee said.

Asked why India and other emerging nations had not chosen to put up a common candidate, he said India, Brazil, Russia and China had taken a decision to go by consensus.

The process of reform to give more voice to emerging economies at IMF had started, he said. But “You can’t cross the bridge before you reach it,” Mukherjee said pointing out that IMF was a financial institution that operated on the basis of quotas and shares.

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