Christine Lagarde New Head of IMF

By iMFdirect

The IMF has a new managing director, Christine Lagarde, France’s (now) former finance minister, to head the global lender as the world’s economy slowly recovers.

Lagarde will hit the ground running on July 5, and faces a very full inbox.

“The IMF has a lot on its plate and faces an uneven world recovery, the reopening of global imbalances, potentially destabilizing capital flows, high level of unemployment, rising inflation, and difficult country cases,” said Lagarde in her interview for the job with the IMF’s 24-member Executive Board on June 22. 

Lagarde also addressed thorny issues surrounding her candidacy head on.

“I am not here to represent the interest of any given region of the world, but rather the entire membership,” said Lagarde. “As a Governor to the IMF, I am on record for having supported a selection process regardless of nationality. As a consequence, being French and being European should be neither an advantage nor a handicap.”

The then candidate to become managing director added a personal touch to her pitch to lead the global institution.

“I stand here as a woman, hoping to add to the diversity and balance of this institution.

I stand here as former head of an international law firm with a dedication to integrity, to the highest moral standards and a belief in participative management.

I stand here as a Finance minister who has been tested in times of crisis.

I would like to put these skills and experience at work to serve the International Monetary Fund,” she said.

In a television interview in Paris last night on France’s TF1, Lagarde, selected by consensus, said her first priority on arrival at the IMF will be to meet with staff.

“The first thing I’d like to do is bring together the staff to give them confidence, courage and energy so we can get to work.”

Here are a couple of outside comments on her appointment—from Paul Krugman and Mohamed El-Erian.

12 Responses

  1. Dear Ms Lagarde

    I would encourage you to familiarise yourself with Mr Pytel’s blog and look into his arguments seriously. His very first article, “The largest heist in history” was written at the end of 2008, and accepted as evidence by the UK’s Parliament Treasury Committee.

    If you review Pytel’s posts it is clear that for the last nearly 3 years his explanation of the crisis has been proved correct. You can read his post and practically be certain what the next step of the crisis will be.

    I would also invite you to review other key articles like the recent one “Credit ratings: wealth transfer mechanism from taxpayers to private corporations”.

    Sincerely yours,

  2. Dear Christine Lagarde,

    I am deeply concerned about the way America is handling the bank and commercial businesses regarding loans and mortgages.

    Like a lot of us we are wondering why the bankers and the Wall St. associates are not being prosecuted. Is this not a worldwide problem?

    Can international law prosecute these outright criminals? Have we not prosecuted internationally because of international civil rights cases violated?

    Please help us. I am embarrased to think we have been violated and very little has been done to stop the monetary disasters.

    Thank you for listening to my plea for help over these global concerns.

    Rosalind Todd

    An expatriate living in America.

    • Rosalind Todd:

      You are by no means alone in wondering why the bankers and their Wall Street associates are not being prosecuted. Of course, we know that part of the reason is that the Bush-Greenspan era was disgracefully delinquent in holding such people accountable, but that does not now explain why more rectification of their delinquency has not yet been accomplished. From my perspective, this issue, although it is a complex one that may take a decade or more to resolve, is one whose prevention of further disgraces dangerous to all of us, has not yet been assured as diligently as is justified.

      Basically, the issue is one of an appalling lack of honesty in circles starting with Wall Street, and as Charles Kindleberger writes, it is one that recurringly occurs with financial innovations. Since AIG was, and so far as I know, remains the world’s larger insurer of defaults in parties to derivative contracts and defaults in derivative contracts were the trigger for Lehman’s bankruptcy and the proximate trigger for TARP funds, I cannot comprehend why sufficient analysis has not yet been published (or occurred?) of the types of derivative contracts that could have been taxed so heavily at the time of their writing that they would never have appeared reasonable for AIG to put them on its books.

  3. MS LAGARDE has got potential. I believe she will manage this organisation as it ought to be.

  4. Ms Christine Lagarde’s IMF appoinement isn’t a French-European victory. It’s a victory for everyone. She was the best candidate for the post. Further, her unique experience rising to the top of Baker McKenzie, one of the world’s top international law firms, arms her with unmatched experience addressing complex global challenges.

    Another criticism that has been levelled against her is that she isn’t an academic economist. I would challenge the importance of being an academically trained economist both generally and specially an organisation resourced with high caliber highly qualified economists. She is presently meeting with them. It’s a safe bet that they will find working as part of her team inspirational.

    The global economy faces unprecedented economic hazards from Europe, Japan, The United States, and the MENA countries. We are at an economic tipping point from a so called state of ‘stable to disequilibrium’ to instable disequilibrium. Or, in a word, chaos. Christine Lagarde will meet the challenges with wisdom and immagination.

  5. Congratulations Ms Legarde !!!
    It’s the right time to congratulate her and extend best wishes for the successful handling of the IMF. In fact, the appointment has both challenges and opportunities.
    Well, she knows more about France, Europe and the G-20. She is well qualified and experienced. However, she needs to know about the real world, poor world, deprived and helpless people living in least developed and developing countries. She needs to realize about 2/3 of the world population. “People without a job, without food to eat, without the medicine or treatment and even without a hope” !
    It’s easy to understand that you are rich or poor. However, it is really difficult to understand the root causes and devise the remedial measures. Because it is not ready-made.
    We hope she will be able to understand the real problems behind underdevelopment, corruption, politics and power. She should devise new measures to frame IMF in changing context. IMF has a long way to go and so has Legarde !

    Best wishes again to Legarde !

    Bishnu Prasad Gautam, PhD
    Kathmandu, Nepal
    gautam.biji@gmail.com

  6. Congratulations to Christine Lagarde on her appointment as chief of the IMF. She is eminently qualified for the position.

    Blessings to all the good people at the IMF who are working to make the world a better place.

  7. My heartiest congratulations to Ms Lagarde on her well-deserved appointment as MD of IMF. As former Interregional Adviser in Resource Mobilization at UN, New York (1997-03), I consider it imperative for IMF to examine fiscal policy formulation and implementation in member countries by initiating corrective reforms towards fiscal consolidation through optimizing tax collections by elimination or drastic reduction of tax evasion and scope for tax avoidance, collecting outstanding taxes promptly and efficiently conduct public expenditure management. These measures will reduce public debt within manageable levels and with appropriate monetary policy and financial sector repair and reform can make way for macroeconomic stability in short and medium-terms.

  8. Congratulations to Ms. Christine Lagrade for winning a top prestigious position of a global financial institution. She is now well positioned to make the IMF a more effective and pragmatic institution. Because of the latest financial crisis, most countries are afflicted with high deficits, unsustainable debts, inflation, growing unemployment, money laundering, spill-over effects etc.So there are so many challenges awaiting Ms. Lagarde. We are confident that since Ms. Lagarde has the necessary education, experience and the ability she will be able to convert these challenges into good opportunities for the benefit of the ailing economies.

    We here in Pakistan sincerely wish her good luck in her future endeavors.

    Javed Mir

  9. Her candid statement during interview and her subsequent remarks to a French TV channel show beyond any shadow of doubt that the new MD has tasks cut out for herself. With her compatriot’s track record when he was MD of the Fund at the crucial juncture having earned him universal plaudits, the new MD would be circumspect enough to carve out a distinct image of her in this multilateral financial institution not merely as a woman and an European, but as a human being who is conscious of the many challenges the global economy is faced with in general and the financial system in particular.

  10. How wonderful that a woman has made it to the top of the executive ladder of global finance! May your integrity and insight and courage inspire us all to clean up the messes that now belabour us!

    • It’s quite interesting that only Europeans and Americans are selected up till now. Our candid opinion in Africa is that of total mistrust of anything from the hegemony of the selection process.

      That the developing countries will fold their hands and allow themselves to be totally cheated, dominated and dehumanized by the West is unfathomable from my point of view. While we see this as a victory for the West once more, we are looking forward to a time of unequivocal transparency in IMF.

      That being the case, we see this as a French/European victory (in the words of the French president). The developing world under its long suffering agenda will not benefit from a French woman. History is about repeating itself. After years of plundering Africa and the rest of the world colonialism, we are experiencing injustice and it will continue for long.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 827 other followers

%d bloggers like this: