French Finance Minister Christine Lagarde promised to push reforms to give Brazil and other emerging economies more influence at the IMF as she started a worldwide tour on Monday to win support for her candidacy to lead the global lender.
The backing of Brazil, Latin America’s largest economy and an influential diplomatic power, could help ease discontent among developing countries over the long-standing practice of choosing a European to head the Washington-based IMF.
Brazilian Finance Minister Guido Mantega said Brazil had yet to decide whether to support Lagarde or her only declared rival, Mexican central bank Governor Agustin Carstens. However, he underscored the need for more reforms to give emerging economies a greater voice in the IMF, something Lagarde was eager to stress she supported.
Lagarde’s comments came as Carstens began his own tour to campaign for the job, starting in Spain where he urged IMF members not to elect a European by default.
Brazilian officials said in private before Lagarde’s visit that Brazilian President Dilma Rousseff was inclined to back her candidacy as long as she pledges to continue reforming the IMF. They see Lagarde as having more clout to push reforms than Carstens, who arrives in Brazil today.
“If I was elected, I’d make sure that the diversity of members is represented at all levels,” Lagarde told reporters at a news conference in Brasilia.
She added that the fund “must continue the reform process it began under Dominique Strauss-Kahn,” who quit as IMF managing director after being charged with the attempted rape of a hotel maid in New York this month.
Lagarde, who is a strong favorite to win the post and who France says has the backing of the G8 group of leading economic powers, also said it was important for the IMF to increase international cooperation to avoid excessive currency swings.
Carstens said France was “spinning” its comments regarding votes from the G8 and criticized the view that Lagarde, as a European, would better understand the region’s debt crisis.
“The Europeans are wrong to think only a European can help them out of their crisis,” he told Mexican radio in an interview from Madrid.
Lagarde said she did not discuss with Brazilian officials the possibility of her serving a shortened term as IMF managing director until the end of next year, when Strauss-Kahn’s tenure would have ended. Lagarde has made clear she is seeking a full five-year term.
Mantega said the crucial qualities for the next IMF head were experience, competence and commitment to reform, and that Brazil would wait for all candidates to present their cases before declaring its support.
Lagarde is “certainly a “competent minister,” he said.
“Brazil wants the philosophy of reform to be maintained by the new managing director,” Mantega said after lunching with Lagarde, who also met Brazilian central bank Governor Alexandre Tombini.
Mexican President Felipe Calderon planned to call Rousseff yesterday to ask for Brazil’s backing of Carstens’ candidacy, a Brazilian government source said.
The 187-member IMF has approved reforms that will give emerging economies increased voting rights and board seats by the end of next year. More than 6 percent of voting power at the fund will shift to developing countries such as China, which will become the third-biggest member nation.
Lagarde’s visit to Brasilia is the first in a hastily arranged global tour that will also take her to India, China, Russia and Saudi Arabia. The IMF has a June 30 deadline to pick a successor. Carstens was to visit Portugal yesterday.
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