Russia nominates own candidate to run IMF
Russia nominates own candidate to run IMF
in London
Published: August 23 2007 03:00 | Last updated: August 23 2007 03:00
Russia challenged western dominance of world international financial institutions yesterday by nominating a surprise candidate, Josef Tosovsky, the former Czech premier and ex-central bank chief, to run the International Monetary Fund.
The nomination pitted Mr Tosovsky against Dominique Strauss-Kahn, the former French finance minister, who has the backing of the European Union.
Russia's move ran into immediate trouble when the Czech Republic, which joined the EU in 2004, declared that it was standing by the EU's decision to support the French candidate.
However, Moscow's move shows Russia's increasing international assertiveness and willingness to clash with the west over issues ranging from energy supplies to US plans to site missile defence bases in Europe.
The Kremlin has also raised concerns over US-EU domination of international institutions - an issue that plays well with large developing countries, including China, India and Brazil.
The IMF chief is traditionally selected by European nations while the World Bank head is chosen by the US. But developing nations have long resented this informal arrangement, which dates back the the 1940s.
Alexei Kudrin, Russia's finance minister, said the move was aimed at boosting the prestige of the IMF, which had failed to handle recent financial crises, including the 1998 Russian financial crisis.
"Given the IMF's failures in resolving crises in a number of countries, the IMF needs to raise its prestige", he said. Mr Kudrin praised Mr Tosovsky as a proven crisis manager. He said developing states, including Brazil, India and China, had all expressed support for an open selection process in talks.
Mr Putin has slammed world financial institutions as "archaic, undemocratic and unwieldy" and called for their radical overhaul to reflect the surging growth of developing nations.
The US Treasury department said of Russia's move: "We look forward to working with our colleagues at the fund to select a new managing director. The secretary looks forward to speaking with any candidate."
The French finance ministry said: "We believe that it will not put into question the momentum behind Dominique Strauss-Kahn's candidacy." Mirek Topolanek, the Czech prime minister, said "Mr Tosovsky was not, and is not, the Czech Republic's candidate for this post."
Mirek Topolanek, the Czech prime minister, said: "Mr Tosovsky was not, and is not, the Czech Republic's candidate for this post."
Officials said Russia's move would have no impact on talks over hosting part of the planned US missile defence system.
Few countries yesterday backed Moscow's choice of Mr Tosovsky. Mr Strauss-Kahn, in Beijing yesterday, was reported as saying he felt he had China's backing.
A senior Indian finance ministry official told the FT that as far as he was aware there had been "no conversation" about the nomination and he declined to say whether New Delhi would back Mr Tosovsky.
A senior Brazilian presidential official said Brazil sought reform but was not backing any particular candidate.
in London
Published: August 23 2007 03:00 | Last updated: August 23 2007 03:00
Russia challenged western dominance of world international financial institutions yesterday by nominating a surprise candidate, Josef Tosovsky, the former Czech premier and ex-central bank chief, to run the International Monetary Fund.
The nomination pitted Mr Tosovsky against Dominique Strauss-Kahn, the former French finance minister, who has the backing of the European Union.
Russia's move ran into immediate trouble when the Czech Republic, which joined the EU in 2004, declared that it was standing by the EU's decision to support the French candidate.
However, Moscow's move shows Russia's increasing international assertiveness and willingness to clash with the west over issues ranging from energy supplies to US plans to site missile defence bases in Europe.
The Kremlin has also raised concerns over US-EU domination of international institutions - an issue that plays well with large developing countries, including China, India and Brazil.
The IMF chief is traditionally selected by European nations while the World Bank head is chosen by the US. But developing nations have long resented this informal arrangement, which dates back the the 1940s.
Alexei Kudrin, Russia's finance minister, said the move was aimed at boosting the prestige of the IMF, which had failed to handle recent financial crises, including the 1998 Russian financial crisis.
"Given the IMF's failures in resolving crises in a number of countries, the IMF needs to raise its prestige", he said. Mr Kudrin praised Mr Tosovsky as a proven crisis manager. He said developing states, including Brazil, India and China, had all expressed support for an open selection process in talks.
Mr Putin has slammed world financial institutions as "archaic, undemocratic and unwieldy" and called for their radical overhaul to reflect the surging growth of developing nations.
The US Treasury department said of Russia's move: "We look forward to working with our colleagues at the fund to select a new managing director. The secretary looks forward to speaking with any candidate."
The French finance ministry said: "We believe that it will not put into question the momentum behind Dominique Strauss-Kahn's candidacy." Mirek Topolanek, the Czech prime minister, said "Mr Tosovsky was not, and is not, the Czech Republic's candidate for this post."
Mirek Topolanek, the Czech prime minister, said: "Mr Tosovsky was not, and is not, the Czech Republic's candidate for this post."
Officials said Russia's move would have no impact on talks over hosting part of the planned US missile defence system.
Few countries yesterday backed Moscow's choice of Mr Tosovsky. Mr Strauss-Kahn, in Beijing yesterday, was reported as saying he felt he had China's backing.
A senior Indian finance ministry official told the FT that as far as he was aware there had been "no conversation" about the nomination and he declined to say whether New Delhi would back Mr Tosovsky.
A senior Brazilian presidential official said Brazil sought reform but was not backing any particular candidate.
posted by Alex at
8:20 PM
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