France's Finance and Economy Minister Christine Lagarde is seen during the ringing of the opening bell at the Paris Euronext opening day Tuesday, May 24, 2011.Jacques Brinon/AP
The representatives at the International Monetary Fund from the leading emerging-market countries are pushing back against Europe's bid to crown France's finance minister as the next managing director of the institution.
In a unique show of force and unity, the IMF executive directors from Brazil, China, India, Russia and South Africa issued a joint statement in which they called for an end to the "obsolete unwritten convention" that head of the fund must hail from Europe.
"We are concerned with the public statements made recently by high-level European officials to the effect that the position of managing director should continue to be occupied by a European," the executive directors said in a statement released by the IMF in Washington. "The convention that the selection of the managing director is made, in practice, on the basis of nationality undermines the legitimacy of the fund."
The statement represents the most significant display of strength by emerging market countries since debate about choosing a new leader for the IMF heated up last week following the resignation of Dominique Strauss-Kahn. The former French finance minister quit to fight the New York prosecutor's claim that he attempted to rape a hotel maid on May 14. The IMF's 24-member executive board is taking nominations for a new managing director until June 10, and hopes to choose Mr. Strauss-Kahn's replacement by June 30.
In Europe, there is speculation that French Finance Minister Christine Lagarde is poised to announce her candidacy for a job that a European has held since the IMF's inception in 1946.
Ms. Lagarde has scheduled a news conference for Wednesday morning in Paris, the Reuters news agency said. While the finance ministry refused to explain its reason for summoning the press, Ms. Lagarde will use the occasion to say that she will seek the IMF job, Reuters said, citing unnamed European diplomats.
For the better part of a week, Europe's leaders have been rallying support for the internationally popular Ms. Lagarde, arguing that the European debt crisis makes it imperative that someone who understands the region's intricate politics remains in charge at the IMF. Ms. Lagarde already has been endorsed by countries such as Britain, Italy and the Netherlands, and German Chancellor Angela Merkel spoke highly of her on several occasions last week.
But Europe's eagerness to put forward a candidate has been interpreted by some as unfair and taking advantage of its institutional ties in the European Union to quickly coalesce around a candidate, and intimidating others from joining the race.
In their letter, the IMF directors from countries commonly referred to as the BRICS nations pointed out that at the time of Mr. Strauss-Kahn's selection to lead the fund in 2007, at least some European politicians promised to thereafter relinquish their hold on the job.
At the time, Jean-Claude Junker, the head of the euro group, said that "the next managing director will certainly not be a European" and that "in the euro group and among EU finance ministers, everyone is aware that Strauss-Kahn will probably be the last European to become director of the IMF in the foreseeable future," the BRICS executive directors say in the statement, without giving a source for the reference.
"We believe that if the fund is to have credibility and legitimacy, its managing director should be selected after broad consultation with the membership," the statement said. "It should result in the most competent person being appointed as Managing Director, regardless of his or her nationality. We also believe that adequate representation of emerging market and developing members in the Fund's management is critical to its legitimacy and effectiveness."
So far, the only declared candidate for the IMF job is Agustin Carstens, the governor of Mexico's central bank.
"What we are calling for is to have an open, transparent, merit-based process," Mr. Carstens said Tuesday in an interview on Bloomberg Television. "What different countries should do is compare résumés, compare experiences, hear the candidates and make up their minds. If the process is done that way, I have a chance."
Mr. Carstens has a PhD in economics from the University of Chicago, has served in senior positions at the IMF and is a former finance minister.
Still, he is considered an underdog because European countries control about a third of the votes at the fund and the European Union has made clear that it will vote as a bloc.