IMF leadership battle begins as Strauss-Kahn hangs up his boots

Five days after Strauss-Kahn was arrested for allegedly sexually assaulting a maid in a posh New York hotel,the Fund,a crucial player in protecting global economic stability,has given no suggestion of what it will do

The resignation of International Monetary Fund head Dominique Strauss-Kahn promises to set off a succession battle to lead the global lender pitting the developing world against the West.

The leading contender appears to be French finance minister Christine Lagarde,but emerging economic powers could press for an end to the long-standing Western dominance of the institution,with Turkish former UN official Kemal Dervis also said to be near the top of the list.

Five days after Strauss-Kahn was arrested for allegedly sexually assaulting a maid in a posh New York hotel,the Fund,a crucial player in protecting global economic stability,has given no suggestion of what it will do.

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But several candidates have been mentioned and a fight looms over whether the next chief will come,as tradition has dictated,from Europe,or from one of the rapidly developing economies flexing their muscles on the world stage.

As pressure swelled for the IMF to chart its course through the crisis,Strauss-Kahn announced early Thursday that he would step down as he again denied all the charges against him.

He did not give any indication of who he wanted to succeed him,saying only that he wanted to protect this institution which I have served with honour and devotion.

The IMF itself has said little about the crisis and continued its work under acting director John Lipsky,signing off this week on a 78-billion-euro ($111 billion) Portugal bailout,releasing funds for Irelands bailout,and putting pressure on Pakistan to improve its fiscal management.

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The Fund will communicate in the near future on the Executive Boards process of selecting a new Managing Director. Meanwhile,John Lipsky remains Acting Managing Director, the IMF said in a short statement accompanying Strauss-Kahns resignation letter.

Officially,the 24-member executive board votes to fill the top post,with votes weighted based on member countries and regions subscription quotas.

India watching situation: Pranab

After a top finance ministry adviser pitched for Planning Commission deputy chief Montek Singh Ahluwalia as the IMF head,India today said it is watching the situation following the resignation of Dominique Strauss-Kahn. Strauss-Kahn has tendered his resignation… We are watching the situation, finance minister Pranab Mukherjee told reporters here. Chief Economic Adviser to the finance ministry Kaushik Basu said yesterday,In my view,Montek is the best name… not only from Indias point of view,but from the worlds point of view also.