labels: international monetary fund, in the news
Dominique Strauss-Kahn takes over as IMF managing director news
02 November 2007
Mumbai: Dominique Strauss-Kahn, a former French finance minister, has taken over as managing director of the International Monetary Fund.

Strauss-Kahn, 58, who will take over from the Rodrigo Rato, is expected to pursue reforms of IMF whose makeup still reflects the global economic order following World War II, with the United States and Europe as the dominant powers.

The IMF is under pressure to give emerging economies like China a bigger say in the global financial institution.

The biggest challenge he faces is finding agreement among the 185-member countries by a 2008 deadline on how to boost the voting power of under-represented emerging powers. He will be hard put to persuade European countries to relinquish some voting power.

With China and India driving the world''s economic expansion and concern increasing about the growth prospects in the United States and Europe, developing countries are demanding a greater stake in the institution that overseas global financial stability.

While the United States is holding on to its veto power over decisions in the IMF, it has said it will not seek an increase in its voting power. But countries like France and Britain are nervous that an adjustment in the IMF`s votes could push them below China, whose rapidly growing economy is now the fourth largest in the world behind the United States, Japan and Germany.

 search domain-b
  go
 
Dominique Strauss-Kahn takes over as IMF managing director