Lagarde in India to drum up support for IMF bid

French Finance Minister Christine Lagarde has arrived in India on the latest leg of a world tour aimed a countering opposition by emerging countries to her appointment as head of the International Monetary Fund (IMF). 

Reuters/ B Mathur

India has so far refused to publically support any candidate in the race to fill the IMF position left vacant after the resignation of Dominique Strauss-Kahn over allegations of sexual assault last month.

New Delhi has said it would like to see a candidate from a fellow emerging market for the top job, but seems resigned to Europe’s continuing monopoly of the managing-director’s position following a tradition that goes back to the IMF's formation.

Lagarde is expected to meet Prime Minister Manmohan Singh, Finance Minister Pranab Mukherjee and the influential policy adviser Montek Singh Ahluwalia. She is expected to repeat her statements in Brazil where she pledged to reform the IMF and give emerging and developing countries more power.

Mexico’s central bank chief Agustin Carstens is seen as the only other serious contender for the job. He is to visit Canada on Tuesday and India on Friday on a tour that has already seen stopovers in Brazil and Argentina.

China could play a deciding role in the appointment of a new IMF chief. It could unite with the other so-called Brics countries, rather than going with Europe and the United States.

Some reports have suggested China has agreed to back Lagarde in return for support for its own candidate as her number two.

Lagarde is due in China on Wednesday before heading to Portugal on Friday where African finance ministers and central bankers will be meeting for the annual gathering of the African Development Bank.

Friday is the deadline for possible replacements for Strauss-Kahn to declare their candidacy.