Global power shift

Throughout history a pattern has been established in which major shifts in economic power are followed by, or go hand-in-hand with, shifts in military power and/or dominance. Developments following in the wake of the sex-scandal that has engulfed the International Monetary Fund managing director underline that the world is presently again experiencing such a ground-shift.

European leaders have dropped strong hints that they would not tolerate a new head of the IMF from outside the continent as the scandal around Dominique Strauss-Kahn sparked speculation about his potential successor – speculation that include South Africa’s previous minister of finance, Trevor Manuel.

For many decades the tradition has been that a European runs the IMF and an American deputises to him and gets the top job at the World Bank. Among the 24 directors of the IMF count nine from Europe, while the American member’s vote counts four times and the vote of the Brazilian director, who represents nine countries, carries only a 2.4% weight.

This dispensation however, is part of an economic order that is no longer a reflection of the realities of the global economy. For one, not only does the United States battle with a missive debt burden, but the majority of that debt is held by China, who analysts expect to flex its muscles to get a candidate from one of the emerging economies appointed to the IMF position.

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