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SA's ex-finance chief slams Europe's IMF hold

24th May 2011

By: Sapa

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A South African who could be in line to lead the International Monetary Fund is joining calls for the West to relinquish its hold on the financial body's leadership.

Trevor Manuel, who earned praise during his 1996-2009 tenure as South Africa's finance minister, told state TV Monday that developing countries were playing an increasingly important role in the global economy, and that it is "fundamentally wrong" that "birthright is more important than ability" in choosing the IMF chief. A European has headed the institution since the first managing director was named in 1946, a tradition developing countries are criticizing. An American has traditionally held the top job at the IMF's sister agency, the World Bank.

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"The old order has to pass," Manuel said.

Manuel's name has come up often as a possible successor to France's Dominique Strauss-Kahn, who stepped down as IMF head because he faces charges in New York he tried to rape a hotel maid. Strauss-Kahn denies charges.

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State TV reports Manuel would not say Monday whether he's seeking the IMF job.

Mexico has said it will nominate the head of its central bank to lead the IMF. Over the weekend, South Africa and Australia – co-chairs of an IMF reform committee of the Group of 20 leading rich and developing countries – said merit, not nationality, should be the main criteria in replacing Strauss-Kahn.

But Europe is unlikely to give up easily, especially at a time of debt crisis in the eurozone, where the fund is playing an important role in dealing with the problem. Several European governments back French Finance Minister Christine Lagarde in the race to replace Strauss-Kahn.

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