News / Economy

Replacing Strauss-Kahn: Who is Next at IMF?

A combination photo of possible successors if Dominique Strauss-Kahn, the head of the International Monetary Fund, leaves the IMF. They are (top L-R) Mohamed El-Erian, Stanley Fischer of Israel, Gordon Brown of Britain, Kemal Dervis of Turkey, Peer Steinb
A combination photo of possible successors if Dominique Strauss-Kahn, the head of the International Monetary Fund, leaves the IMF. They are (top L-R) Mohamed El-Erian, Stanley Fischer of Israel, Gordon Brown of Britain, Kemal Dervis of Turkey, Peer Steinb
TEXT SIZE - +

Former International Monetary Fund (IMF) chief Dominique Strauss-Kahn of France has been released on bail from a New York jail cell, after being charged and then held for attempted rape.  But only one day after his resignation, the debate over who should replace him has already begun.  

Despite pleading innocence, the images of Dominique Strauss-Kahn in handcuffs was unbecoming of the leader of the global banking institution.

Guilty or not, many - including U.S. Treasury Secretary Tim Geithner say the damage has already been done. "Of course, I can't comment on the case, but he's obviously not in a position to run the IMF,” he said.

The race to find a successor is underway. But political analyst Daniel Gros says finding a leader that can satisfy all of the IMF's 187 member countries will not be easy.

"Everybody in the world will, of course, be competing now, but we have to realize that the emerging countries also have widely different interests.  Think about China versus India versus Brazil.  So it will be very difficult to find somebody who serves the political interests of any one group," said Gros.

Since its founding, the top job at the IMF has traditionally been filled by a European.  But there is growing opposition to that arrangement.  Beijing insists the IMF's future leader should reflect the growing clout of developing nations.

And the list of potential candidates is long:  They include Zhu Min, deputy governor of the People's Bank of China; Agustin Carstens, Mexico's central bank governor; and South Africa's former finance chief, Trevor Manuel.

But Owen Barder at the Center for Global Development sees difficulty for non-European candidates. "It will be easier for Europe to come up with a single candidate who they want to nominate than it will be for the emerging markets to get an agreement.  They don't necessarily have the mechanisms and the history of nominating a single candidate.  So the danger is, that Europeans, because they're used to doing it, will find someone very quickly and try to push them forward as a fait accompli," said Barder.

Early European favorites include Axel Weber, the former president of Germany's Bundesbank and French Finance Minister Christine Lagarde.  Right now, economist Jacob Kirkegaard says the frontrunner status belongs to Lagarde.

"Because one, she's a very skillful policymaker.  She's got a lot of experience, both in Europe obviously, but also at the G20 level.  And she has, for better or worse, the advantage - she would represent a new face to the IMF and international organizations because she would be the first woman to run such an organization," stated Kirkegaard.

Ultimately, all sides agree the choice must be based on merit.

"It could be a European, it could be someone from an emerging market or even an American -- the point again being that you should really focus on the fact that you need a credible, well respected, policy heavyweight," added Kirkegaard.

Together, the United States and European nations hold more than 50 percent of the voting power at the IMF.  The U.S. has yet to take a position on who can best fill the vacuum left behind by Strauss-Kahn's stunning departure.

You May Like

Video Pope Francis Hopes Dual Canonizations Will Reconcile Church

John the XXIII and John Paul II will be made saints in a ceremony at St. Peter’s Square on April 27 More

Thailand Reacts to Plots Targeting Israelis

Authorities hope arrest of two Lebanese suspects will disrupt plot to attack young Israeli tourists More

Video In Capturing Nature's Majesty, Film Makes Case for Its Survival

'Once Upon a Forest' takes viewers deep into heart of tropical rainforest More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Pope Francis Hopes Dual Canonizations Will Reconcile Churchi
|| 0:00:00
...
 
🔇
X
Jerome Socolovsky
April 22, 2014 4:14 PM
On April 27, two popes - John the XXIII and John Paul II - will be made saints in a ceremony at St. Peter’s Square. VOA religion correspondent Jerome Socolovsky says the dual canonization is part of the current pope’s program to reconcile liberals and conservatives in the Roman Catholic Church.
Video

Video Pope Francis Hopes Dual Canonizations Will Reconcile Church

On April 27, two popes - John the XXIII and John Paul II - will be made saints in a ceremony at St. Peter’s Square. VOA religion correspondent Jerome Socolovsky says the dual canonization is part of the current pope’s program to reconcile liberals and conservatives in the Roman Catholic Church.
Video

Video In Capturing Nature's Majesty, Film Makes Case for Its Survival

French filmmaker Luc Jacquet won worldwide acclaim for his 2005 Academy Award-winning documentary "March of the Penguins". Now Jacquet is back with a new film that takes movie-goers deep into the heart of a tropical rainforest - not only to celebrate its grandeur, but to make the case for its survival. VOA's Rosanne Skirble reports.
Video

Video Boston Marathon Bittersweet for Many Runners

Monday's running of the Boston Marathon was bittersweet for many of the 36,000 participants as they finished the run that was interrupted by a double bombing last year. Many gathered along the route paid respect to the four people killed as a result of two bombings near the finish line. VOA's Carolyn Presutti returned to Boston this year to follow two runners, forever changed because of the crimes.
Video

Video Pacific Rim Trade Deal Proves Elusive

With the U.S.-led war in Iraq ended and American military involvement in Afghanistan winding down, President Barack Obama has sought to pivot the country's foreign policy focus towards Asia. One aspect of that pivot is the negotiation of a free-trade agreement among 12 Pacific Rim nations. But as Obama leaves this week on a trip to four Asian countries he has found it very difficult to complete the trade pact. VOA's Ken Bredemeier has more from Washington.
Video

Video Robotic Mission Kicks Up Lunar Dust

A robotic mission to the moon was deliberately crashed onto the lunar surface late last week, but not before scientists had collected data gathered by the spacecraft which was designed to self-destruct. VOA's Rosanne Skirble reports on the preliminary findings of the craft, called LADEE - an acronym for Lunar Atmosphere and Dust Environment Explorer.
Video

Video Boko Haram Claims Responsibility for Bombing in Nigerian Capital

The Nigerian militant group known as Boko Haram has claimed responsibility for a bombing in the capital on April 14th that killed 75 people. In the video message, Abubakar Shekau, the man who says he ordered the bombing, says nothing about the mass abduction of more than 100 teenage girls, most of whom are still missing. Heather Murdock has more for VOA from Abuja.
Video

Video Ukraine Developments Hang Over Obama Trip to Asia

President Barack Obama's trip to Asia this week comes as concerns over Beijing's territorial ambitions are growing in the region. Those concerns have been compounded by Russia's recent actions in Ukraine and the possibility that Chinese strategists might be looking to Crimea as a model for its territorial disputes with its neighbors. VOA's Bill Ide has more from Beijing.
Video

Video Autistic Adults Face Housing, Job Challenges

Many parents of children with disabilities fear for the future of their adult child. It can be difficult to find services to help adults with disabilities - physical, mental or emotional - find work or live on their own. The mother of an autistic boy set up a foundation to advocate for the estimated 1.2 million American adults with autism, a developmental disorder that causes communication difficulties and often social difficulties. VOA's Faiza Elmasry reports.
AppleAndroid

World Currencies

EUR
USD
0.7217
JPY
USD
102.17
GBP
USD
0.5949
CAD
USD
1.1009
INR
USD
60.326

Rates may not be current.