Could a Dutch economist succeed Dominique Strauss-Kahn as managing director of the International Monetary Fund? Now that the disgraced Frenchman has tendered his resignation, in a letter sent from his cell in New York’s notorious Rikers Island Prison, jockeying for his position has begun in earnest.

Politics and geography count at least as much as merit when choosing a new managing director. Traditionally a European heads up the IMF and an American the World Bank. But other countries are now sensing their chance to break this stranglehold on the world’s top financial jobs.

India, Brazil, Turkey, South Africa and Mexico have already put forward candidates for the IMF post, and China has said it will back a non-European candidate.

European leaders, however, argue that now is not the time for a change. The IMF is currently playing an essential role in shoring up the euro through loans to Greece, Ireland, and Portugal. German Chancellor Angela Merkel, among others, has said a European needs to be at the helm during this sensitive period for the shared currency.

Nout Wellink, head of the Nederlandsche Bank, the Dutch central bank, agrees:

Nout Wellink

Foto: Wendy Braanker

"The issues facing the IMF at the moment are so dominated by Europe that I think it will help to have a European once again as head of the fund."

First woman
Mr. Wellink is the only serious Dutch candidate for the job. He is unlikely to get the post, however, in part due to mixed reviews of his handling of the financial crisis here in the Netherlands.
Mr Wellink is lobbying for another Frenchman to take over from Mr Strauss-Kahn.

"I know of a fantastic candidate, and that is [Jean] Trichet from the DSB, if he leaves there and goes to Washington."

Another French candidate is receiving even more support than Mr Trichet. Finance Minister Christine Lagarde is widely praised for her knowledge and ability. And she would be the first woman to fill the post. But it is unlikely another French person will be named, since the position usually rotates geographically within Europe.

Unlikely
Former British Prime Minster and Chancellor of the Exchequer Gordon Brown has put himself forward, but is an outsider simply because his candidacy is not supported by his own government.
If the executive board of the IMF does decide to go outside Europe, long-time South African Finance Minister Trevor Manuel is a strong candidate. As is Tarman Shanmugaratnam of Singapore who has the backing of China. Mexican Agustin Carstens and Indian Montek Singh Ahluwalia are the other strong candidates from outside Europe.

The Netherlands has only once supplied a director of the IMF - Johannes Witteveen, who led the organisation from 1973 to 1978. Even if the new director is a European, it is unlikely that Mr Witteveen will see a compatriot named to the post he once held.

(/rk)