Agustin Carstens, Governor of the Bank of MexicoDave Chan/The Globe and Mail
Mexican central bank chief Agustin Carstens didn't get Canada's backing as he continues a world tour to drum up support for his unlikely bid to be the first non-European to run the International Monetary Fund.
But he's not giving up without a noisy fight.
The self-declared candidate of emerging market countries has slammed what he calls the "European Church" for dictating what happens at the global lender since its creation in 1946 and making a mockery of the bank's "fair and open" selection process.
In an interview Tuesday in Ottawa after meeting federal Finance Minister Jim Flaherty, Mr. Carstens insisted his chances are "good" to lead the IMF in spite of considerable odds stacked against him.
"I recognize that it's an uphill battle," he said. "To break a tradition of 65 years is difficult."
Mr. Carstens, 52, is garnering a lot of headlines as he tours the U.S., Europe, Asia, Latin America, and now Canada, but so far just two committed votes - from Uruguay and Colombia.
He said he neither asked for, nor secured, Canada's support in meetings with Mr. Flaherty and Bank of Canada Governor Mark Carney.
Mr. Carstens, a former Mexican finance minister and top IMF official, is one of two declared candidates to replace Dominique Strauss-Kahn, who abruptly quit last month after being charged with sexually assaulting a hotel maid in New York City. European countries are pushing hard for French Finance Minister Christine Lagarde, arguing that the IMF's role in negotiating bailout packages for several euro zone countries means the job must go to a European.
Mr. Carstens said he understands the European argument, but suggested there may never be a "right time" to recognize the growing economic clout of emerging economies at the IMF, which is always running from one financial crisis to another. The IMF has been headed by a European since its founding in the aftermath of World War Two.
Winning the job would reflect the changes in the global economy, where developing and emerging markets make up more than half of GDP. Europe accounts for about 20 per cent of the global economy, but dominates the IMF with 35 per cent of the votes.
"I would like to win, but if not, I want to send a strong signal that there are emerging market public officials that have the merits to run an institution like this, and that we expect to be taken seriously, that we should strive for a better, more open process," he said.
He took off the table the suggestion that he might accept another job, such as the No. 2 position at the IMF, which is traditionally held by an American. He said he's not interested in "consolation prizes."
Speaking to reporters in Montreal, Mr. Flaherty confirmed the government has not decided who to back in the selection of a new IMF head, and that new candidates may yet come forward before the nomination period closes this Friday.
"So far there are only two, but there's still talk there may be more than two," said Mr. Flaherty, who insisted he wants an "open" process.
In an earlier news conference, Mr. Carstens told reporters that Canada's support is particularly important because it "usually represents the high moral ground" on international issues. "It's because of what Canada represents," he told reporters.
Under the IMF's, the formal nominations aren't due until June 10, with a final decision expected by month's end.
Mr. Carstens is arguably much more qualified for the job than Ms. Lagarde, a lawyer and politician. He's a U.S.- and Mexican-trained economist. And he's far more experienced in international banking and finance, including a four-year stint as IMF executive director and deputy managing director that ended in 2006. He was Mexico's finance minister from 2006 to 2009.
And he's seen financial crises up close, having helped guide Mexico through hyper inflation, a switch to a floating currency, excessive government debt and IMF bailouts But Mr. Carstens hasn't yet managed to get the unanimous support of key emerging market countries, such as Brazil, Russia, India and China - the so-called BRICs. Even Angel Gurria, the Mexican-born head of the Organization for Economic Co-operation and Development, has endorsed Ms. Lagarde as a great candidate.
And some critics have suggested Mr. Carstens may be too much of an inflation hawk, a relic of his three years of graduate work at the notoriously free market University of Chicago - a charge he dismissed Tuesday. You can't have a strong economy, without strong policymaking, he said.
The IMF has 187 member countries. But Europe and the U.S., with its 17 per cent of IMF voting shares, can dictate who will run the institution.
The United States hasn't confirmed who it will back. But Treasury Secretary Tim Geithner has called Ms. Lagarde a "very credible" candidate.
The U.S. has a strong incentive to maintain the status quo. Under a long-standing convention, Washington picks the World Bank president and gets the No. 2 job at the IMF.
With files from Les Perreaux in Montreal