Chidambaram leads race to chair IMF panel

NEW DELHI: Finance minister P Chidambaram is in the running to chair the International Monetary & Financial Committee (IMFC), a critical governing body at the International Monetary Fund (IMF). For the first time, an emerging market finance minister is a front-runner to occupy the key position at the IMF. Historically, the IMFC has been chaired by finance ministers from among the cosy club of the developed economies. British PM Gordon Brown, had been the committee chairman for the past six years.

This time Mr Chidambaram is leading the race for this coveted job. Besides the growing support for India, his stature as a finance minister of considerable experience and calibre is expected to favour his candidature over others. The other two contestants include finance ministers’ of Italy and Canada. Hectic lobbying has already begun with each contender trying to garner support in his favour. Mr Chidambaram, who was in Germany and Brussels last week, is understood to have sought their support for his candidature.

The FM may also use his current visit to the United States as an opportunity to canvas support for his candidature. Finance secretary D Subbarao, who is leaving for London next week, may also hold talks on the issue with his British counterparts.

The position fell vacant after Gordon Brown resigned as Chancellor of the Exchequer of UK before taking over as the British premier. The IMFC is one of the key committees of the body, which monitors among other things, transfer of resources to developing nations. It was established in 1999, by a resolution of the IMF Board of Governors, to replace the Interim Committee of the Board of Governors on the International Monetary System.

The IMFC advises the Board of Governors on matters relating to Board’s functions and supervises the management of the international monetary and financial system. This also includes effecting the adjustment process and reviewing developments in global liquidity. It also considers proposals by the Executive Board to amend the Articles of Agreement.

The election of the chairman has to be completed before the body holds its annual meeting next month. Election would be held in two phases. The first phase would be an elimination round in which the contender getting least number of votes will be eliminated and then there would be voting for the second and final round. IMF’s International Monetary and Financial Committee has 24 members and each member represents a group of countries. India represents its neighbours Nepal, Bhutan and Bangladesh. The membership reflects the composition of the IMF executive board.