26 May 2007
Minister Manuel today re-iterated South Africa's strong support for the G-20
position that the heads of the international financial institutions, including
the World Bank, should be appointed using an open transparent selection process
with candidates not restricted by nationality. Since the International Monetary
Fund (IMF) and World Bank were established 60 years ago, the convention has
been that a United States citizen, nominated by the President of the United
States, be appointed as World Bank President and that the IMF Managing Director
be a European nominated by the major countries of Western Europe.
At a time when the effectiveness and legitimacy of the bank need to be
restored, it would be unfortunate if a truly merit-based process allowing the
consideration of candidates from any World Bank member country were not
followed on this occasion and into the future. As a member of the Management
Troika in 2006 of the G-20 (the Group of Twenty emerging and advanced
economies), South Africa strongly supported a reference in the October 2006
G-20 Communiqué which reiterated the position expressed in the October 2005
G-20 Statement on Reforming the Bretton Woods Institutions that the selection
of senior management of the IMF and World Bank should be based on merit and
ensure broad representation of all member countries. South Africa continues to
hold this view.
The G-20 welcomed consideration of any steps to ensure a fully transparent
process for the selection of the IMF Managing Director and the World Bank
President. South Africa looks forward to the IMF and World Bank continuing
their modernisation processes by opening up their appointment processes in
response to the concerns of many of their members. South Africa shares this
view with Peter Costello, the Australian Treasurer and Guido Mantega, the
Brazilian Minister of Finance and 2008 Chairman of the G-20.
For enquiries, please contact:
Thoraya Pandy
Cell: 082 416 8415
Issued by: National Treasury
26 May 2007
