U.S. to confront Europe on IMF chief

By Sridhar Krishnaswami

WASHINGTON, MARCH 4. The Clinton administration is gearing itself for a long-drawn-out battle with Europe, Germany in particular, over the choice of the next chief of the International Monetary Fund. Even though Europe's Mr. Caio Koch-Weser won the largest number of votes in the first round of ``balloting'' recently, it was still short of the majority required. According to the IMF, 36 per cent of the voting power abstained.

The acting Managing Director, Mr. Stanley Fischer, came in second followed by Japan's Mr. Eisuke Sakakibara. The U.S., the fund's largest single share-holder with 18 per cent of the vote, abstained. One thinking is that the issue would be sorted out in the next few days. In a short press statement, the fund said on the basis of the poll, ``Executive Directors will continue their consultations with each other and their national authorities on the next steps. No decision has been made on a further poll.''

Even as the administration here is making it known that it is prepared for the long haul, the President, Mr. Bill Clinton, tried to take some sting out of the debate by saying that while he entirely favoured the job going to a European and a German, he made it known that the U.S. would not settle for Mr. Koch-Weser. The White House has privately made it known that it is against the German candidate based on his qualifications and the fact that he has not shown any great leadership qualities.

``Nobody is playing any games here'', remarked Mr. Clinton, arguing that the world had gone through a terrible crisis in Asia and the U.S. has to contend with the problem in Mexico and other countries in Latin America. ``We want the strongest possible person in the world to head it (the IMF). It's a big, big important job. But I am completely committed to having a European head of the IMF. And it would suit me if the person were from Germany. I'd like to see Germany play a bigger role in all these international institutions'', the President said.

The manner in which this crisis has come about - and that too at the final stages - has left a lot to be desired.

There is the criticism that the Clinton administration bungled by giving the first impression that it would back the German candidate, but then later backtracked when the Treasury Department insisted that Mr. Koch-Weser did not have the necessary qualifications. Media reports have it that after initially not wanting to provoke a crisis with Europe and the Germans, the White House fell in line with the Treasury Department.

The manner in which the Clinton administration is going about has also created the suspicion that Washington is trying to throw its weight around an institution that traditionally picks a European as its head.

On the other hand, the top position at the World Bank has always gone to an American. In the present context, Mr. Fischer is a naturalised American citizen backed by developing countries including India. But Mr. Clinton made it clear as to where his administration is coming from. ``I will not support an American candidate even though I have enormous respect for Mr. Fischer'', the President said.

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