Peter Hartcher, Phillip Coorey
The Sydney Morning Herald
May 26, 2011
Moving up ... Former Federal Treasurer and Prime Minister Paul Keating could become the new IMF chief. Photo: Penny Stephens
PAUL KEATING and Peter Costello are understood to be interested in a possible candidacy to succeed Dominique Strauss-Kahn as the head of the International Monetary Fund, while the Treasurer, Wayne Swan, said the appointment should be made on merit - but stopped short of advocating an Australian.
Mr Keating and Mr Costello, both former treasurers, emerged as possible replacements for Mr Strauss-Kahn yesterday as the biggest emerging economies in the IMF said it was time to abandon the ''obsolete unwritten convention'' that stipulates a European heads the organisation.
Mr Strauss-Kahn resigned after being charged in New York with the sexual assault and attempted rape of a hotel maid.
European countries have monopolised the top job at the global lender of last resort since 1946, but their grip is under serious challenge for the first time.
The opposition's foreign affairs spokeswoman, Julie Bishop, has been lobbying for Mr Costello to be put forward by Australia, saying his strong record in economic management and reform made him a standout choice.
''Australia should be taking a leading role in promoting a candidate from the Asia-Pacific as the new head of the IMF. I have suggested Peter Costello because he has the track record and the qualifications and I'm confident that, if asked by the Australian government, he would accept,'' she said.
Mr Costello did not nominate himself but said: ''Australia should be leading the push for the nations outside Europe to have a representative say in the IMF and to have the IMF reformed to represent the world in the 21st century as opposed to the world of 1946.''
He pointed out in his regular Herald column yesterday that he was a part-time governor of the IMF for almost 12 years.
A confidant of Mr Keating said the former Labor treasurer and prime minister would also be a contender if approached: ''It's the only job that would interest him. It's a job quintessentially crying out for political leadership and commonsense. It needs to be someone who can broker deals between the US and China.
''If Swan approached Paul seriously with some weight behind him - with the support of some of the major non-European countries - I think Paul would be interested. I don't think he would deal with Swan as a sole trader.''
Mr Swan said he had already made it clear the job should be based on merit alone.
''There are a range of good candidates, including [French Finance Minister] Christine Lagarde, but there are also good candidates from developing economies as well,'' he said.
Ms Lagarde declared her candidacy yesterday, saying she should be judged on the basis of experience rather than nationality.
A Labor operative said if Mr Costello was ''halfway serious he would have the guts to pitch up for the job - of course it's not the first time he's been in that situation''.
In a statement on Tuesday, the IMF directors from Russia, India, China, South Africa and Brazil called for an end to European domination of the body.
They pointed out the global financial crisis ''erupted in developed countries'' and it ''underscored the urgency of reforming'' the IMF.
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