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Mexico's Carstens Advances Efforts to Land IMF Lead Role

13 September, 2012

According to several reports
released this month by both Bloomberg and Reuters,Mexico's Central Bank
Governor Agustin Carstens is continuing to advance a strong bid to lead the
International Monetary Fund (IMF). He has reached out to Spain and Brazil in an
effort to rally support,hoping to break the long-standing tradition of the top
job at the lender being reserved for a European by defeating his main rival,
French Finance Minister Christine Lagarde.

Bloomberg reported Tuesday that
Carstens may prove to be a shoe-in for Spain's vote,due to the seat the two
countries share at the IMF and Mexico's role as the current executive director
of that seat. “We have to separate our presence in a chair,in which the vote
is indivisible,” said Spain's Finance Minister,Elena Salgado.

In a meeting with Brazilian
Finance Minister Guido Mantega on Wednesday,Reuters reported that Carstens
worked to capitalize on Latin American discontent surrounding the
representation that emerging markets have received from the IMF over the years,
and to gain additional support for his bid to obtain the top position at the lender.
His experience as a former IMF deputy managing director have made him a serious
contender for the position and many emerging markets are eagerly watching in
the hopes that his involvement will help them to gain a larger say in how the
world economy is handled.

“Carstens is making a principled
stand,” Guillermo Le Fort,a former IMF economist from Chile told Bloomberg
Wednesday. “If he's successful in advancing the cause of emerging markets,the
Europeans might feel red in the face and decide to hold more honest,open
elections based on merit in the future.”

The IMF has announced that it
will choose a new leader to succeed Dominique Strauss-Kahn by June 30,2011,
and has promised to select the most qualified individual out of those running
for the position via a consensus rather than a majority vote. All 187 IMF
member nations have until June 10th to nominate a candidate for the
position of managing director.