BRICS seek top IMF job
6 Jun, 2011 20:50
The race for the IMF head spot is heating up as Europe vies to maintain control, but should they be? Many argue that the leader of the IMF should emerge from an emerging economy – namely from one of the BRICS countries.
Following the sex-scandal, criminal changes and resignation of former IMF director Dominique Strauss-Kahn a void has been left at the helm of the International Monetary Fund.Europe has a candidate lined up, ready to take the job but many are concerned that EU dominance of the IMF may no longer be appropriate given the dire financial and economic troubles plaguing some members of the European Union .Leaders from the world’s largest emerging economies, Brazil, Russia, India, China and South Africa (BRICS), feel it is time for change at the long-time European dominated IMF. Many feel Europe has dominated the IMF for a long time; analysts from The Economist, the Washington Post and others have all called for a shift.Raj Doshi, the president of Mani Capital, Inc. explained that as the Euro zone has experienced crisis the nations in the BRICS group have recognized they boast greater long-term growth potential likely exceeding that of the EU– preferably, the BRICS could consider leaving the IMF. “You have the same Dons of the ‘International Mafia Fund’ getting to do all the third-world looting, and the BRICS have absolutely zero say, stake, or share in any of this,” he said. “That’s exactly what the IMF is – one big looting station.”“Eventually it’s in their best interest to completely break the chains,” Doshi added. “Perhaps start their own IMF type fund which better serves their interests. But, I think in the short run they just can’t do it.”There is a double standard at the IMF. Many Europeans want a European to lead and to dictate to the rest of the world, but do not want anyone else to dictate back. Doshi explained given the inability of the BRICS to incite the necessary change, the same IMF will likely prevail, with a European at the helm and an American in the second seat.