Argument: The role of managing director

For its entire existence, the managing director of the IMF has always been European. This has created considerable discontent within the developing world, with developing countries feeling disenfranchised and, therefore, less likely to trust and cooperate with the Fund [1] .

[1] Musoko, Chipo. “Why IMF boss will not come from the Continent”. All Africa. May 23, 2011. http://allafrica.com/stories/201105240835.html

Candidate 1: "Member countries can not unilaterally increase their quotas8. So even if a country, like the BRICs became rich enough to afford buying a bigger share, it would be in the interest of Western nations to block such a move to retain the power under the status quo.

Western countries are still, rightfully, dominant players. But they hold disproportionate sway over the Fund. Important decisions within the IMF require an 85% supermajority of the total voting quota. The US alone holds 17%, while EU members hold 32% [1] . Effectively, the US is the only country in the world with veto rights at the IMF. Even if all the other countries were in agreement over a certain proposal, the US could unilaterally block it. That is a clear example of just how dominated the IMF is by the West.

[1] Wikipedia. “IMF Article. Memers’ quotas and voting powers”. http://en.wikipedia.org/wiki/International_Monetary_Fund#Members.27_quotas_and_voting_power.2C_and_board_of_governorshttp://en.wikipedia.org/wiki/International_Monetary_Fund#Members.27_quotas_and_voting_power.2C_and_board_of_governors"
Candidate 2: "IMF-led policies' Impact on access to food and healthcare

Since Western countries do not suffer from food shortages, they do not understand how vital food and access to healthcare is for survival in the developing world. The IMF treats food and healthcare in its policies just like any other commodity on the market, sometimes with disastrous humanitarian consequences [1] .

[1] Oxfam. “Death on the Doorstep of the Summit”. Oxfam Briefing Paper. 2002 https://www.oxfam.org.uk/resources/policy/debt_aid/downloads/bp29_death.pdf"
Candidate 3: "As vocal as developing countries have been about the need for a change in leadership at the IMF, they have often failed to come up with viable alternatives to European candidates and recently, when given the opportunity, they failed to rally around Christine Lagarde’s (the new MD) only serious competitor: Mexico’s Agustín Carstens3."
Candidate 4: "Unbridled capitalism is not a viable response. A balance has to be struck between economic interests and political imperatives. The IMF is also a political institution, not a private bank. Its money comes from countries, and therefore the IMF should be accountable to its member states that pay for its very existence. That means a more representative balance of power within the governance of the institution."
Candidate 5: "Under representation of emerging economies

Claims that power within the IMF is distributed according to the reality of the members’ weight in the global financial system are inaccurate. The IMF reflects the financial system as it was 50 years ago and has done little to acknowledge the growth of countries like Brazil, Russia, India, and China (BRICs), which have far fewer votes than their economic heft merits, while Western countries like Belgium are actually overrepresented [1] . Significant reforms to the voting quotas need to be implemented in order to create an IMF that is true to the reality of the world financial system.

[1] -- “Wanted: a French Revolution”. The Economist. June 30, 2011. http://www.economist.com/node/18897575"
Candidate 6: "Neoliberal foreign policy

Western dominance leads to economic policies and loan conditions rooted in neoliberal economic principles, like austerity measures, which overemphasize cutting public spending. These often actually end up badly hurting developing economies, increasing inequalities and poverty (Malawi is a prominent example) [1] . Argentina’s economic collapse attests to that [2] .

[1] Hari, Johann. “It’s not just Dominique Strauss-Kahn. The IMF itself should be on trial”. The Independent. June 3, 2011. http://www.independent.co.uk/opinion/commentators/johann-hari/johann-hari-its-not-just-dominique-strausskahn-the-imf-itself-should-be-on-trial-2292270.html

[2] -- “Economic debacle in Argentina: The IMF strikes again”. http://www.twnside.org.sg/title/twr137b.htm"
Candidate 7: "Unbalanced decision making

The decisions taken by the IMF have a deep impact on the entire global financial system and on developing countries in particular, whose economies are especially sensitive to global changes. Yet, the Western, developed countries have the greatest sway in the decision-making process, with developing countries having little influence over the process. It creates an unjust financial world order, where rich and powerful countries call the shots and smaller, poorer ones bear the consequences [1] .

[1] Foot, Rosemary; Mcfarlane Neil; Mastadundo Michael. US Hegemony in International Organizations. Oxford Publishing Online, November 2003. http://www.oxfordscholarship.com/oso/public/content/politicalscience/9780199261437/toc.html"
Candidate 8: "Precisely because Europe is now the IMF’s biggest client, its MD should not come from Europe. Questions about the independence a European in such a position are already being raised, with some pointing to the fact that the fund has been much more generous with the European PIGS than with any of its previous clients. A non-European MD would maintain the Fund’s credibility and integrity [1] .

[1] -- “Time For a Change: While a euro-zone finance minister, even a talented one, should not lead the IMF”. The Economist. May 26, 2011. http://www.economist.com/node/18744017"

As vocal as developing countries have been about the need for a change in leadership at the IMF, they have often failed to come up with viable alternatives to European candidates and recently, when given the opportunity, they failed to rally around Christine Lagarde’s (the new MD) only serious competitor: Mexico’s Agustín Carstens3.
