A group of Anglo-African nations led by Nigeria dashed India’s aspirations of stepping into the fold of the developing nations and head the International Monetary and Financial Committee board when they voted in favor of Italy on the pretext that only industrial countries should be represented in top global financial institutions. 

In view of the flexing economic muscles of the new group comprising India, Brazil, China and Russia to establish their fiscal power and stir up financial institutions like the IMF, the global monetary body plans to play a new role and hence the election, in which Canadian Finance Minister Jim Flaherty and Italian Finance Minister Tommaso Padoa-Schioppa are locked in a straight battle.

The Indian contention for the post was overwhelmed in the second round of voting. The post fell vacant following the resignation of Britain's former Chancellor of the Exchequer Gordon Brown who quit becoming the Prime Minister of his country.

While India’s candidature was backed by fast developing economies like China, Brazil and Russia, Italy had the support of the European nations as well as the African countries, which still heavily depend on aids from the West. On the other hand, Canada’s entry was supported by the USA, Saudi Arabia and French-dominated African nations. Notwithstanding, India’s failure, the IMF has decided in principle to grant more say to nations like China by changing the voting powers in the panel. This is likely to humble the dominance of the USA and European nations in the IMFC.

Meanwhile, the new IMF Managing Director Dominique Strauss-Kahn, who will take charge from November 1, has emphasized on the need to improve the significance and legality of the international financial institution. Addressing his maiden news conference in the new capacity, Kahn said that the policies he proposes to implement would not allow any new equilibrium in world power or lead to any new financial catastrophe that has already affected the global markets.

Describing him as a ‘reformer’, the former French finance minister and a Socialist said that he would endeavor to provide more representation to the developing nations in the international monetary body. "I define myself as a candidate for reform," said Mr. Strauss-Kahn, a former Socialist French finance minister, adding he will aim to give more representation to emerging countries, including India and China. "While the US will not find its share diminishing, other emerging nations will have a greater stake and say in the panel," he stressed.

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