Financial Times FT.com

Refocus the Fund

By Mohamed El-Erian and Michael Spence

Published: August 6 2007 19:18 | Last updated: August 6 2007 19:18

The International Monetary Fund recently took a step towards establishing a more open, merit-based approach to selecting a replacement to Rodrigo de Rato as its managing director, a position hitherto reserved for a European. The impact of the change has been neg­ated, however, by some European countries’ eagerness to lobby aggressively for their candidate before the nomination period closes at the end of August.

As a result, notwithstanding Dominique Strauss-Kahn’s solid qualifications for the job, Europe’s replacement may face an issue of legitimacy even before he assumes the position.

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