Tharman Shanmugaratnam is qualified to lead the International Monetary Fund. But what are the Singaporean ex-finance minister’s chances of becoming the first non-European to run the Fund?
Being the first Asian to hold the position of chairmanship of the IMF’s key policy steering group, the International Monetary and Financial Committee between 2011 and 2015, Tharman Shanmugaratnam may be more than qualified to hold the top job at IMF.
However, his nationality may present barriers to landing the top role, as all of the 11 heads in the IMF’s 73-year history have stemmed from Europe, say political observers.
Not the Best Time
«I am a European, so I think that it is in the interests of Europe to keep the leadership at the IMF,» said France’s finance minister Bruno Le Maire who was responding to the «Financial Times» (behind paywall) on whether the top job at the IMF could go to a non-European candidate, stressing the decades-old convention for one of the most high-profile jobs in international finance.
«The European thinking is possibly that it is not the best time to break new ground as to the IMF head,» said Eugene Tan, a political observer, who was quoted in «South China Morning Post».
Signs of Change?
Others, however, point to the fact that Shanmugaratnam's shortlisting could be a sign that the world body may be open to change. Still, others suggested that 62-year-old's background could be a strength rather than a hindrance, especially in bridging ties between the IMF and Asian countries.
«Tharman can help bridge the interests of the Western side and emerging markets and ASEAN in particular, thus mitigating any misunderstanding about the institution,» said Siwage Dharma Negara, from the ISEAS-Yusof Ishak Institute in Singapore.
Prompted Questions
The IMF succession race was triggered last week when Christine Lagarde was nominated to succeed Mario Draghi as European Central Bank chief. This has prompted questions about who her replacement will be, should she start at the new job in October.
