For the record…

Chronicling the ‘open, merit-based, and transparent process’ thus far

It struck me that in the event Kristalina Georgieva becomes the next IMF managing director (MD) and serves out her two terms, that, ten years from now, when there will once again be calls to end the gentleman’s agreement, we might find ourselves wondering how exactly another European got the job at the time. By what ‘open, merit-based and transparent process’ did the powers-that-be decide that, across their entire membership, the former World Bank CEO from Bulgaria was the most qualified and distinguished candidate (“without taking geographic preferences into account”, of course)?

As most decisions thus far have taken place behind closed doors with only occasional crumbs of information coming through, mostly from a few ardent reporters’ twitter feeds, this is an attempt at establishing a record of the step-by-step ‘open, merit-based, and transparent’ process leading up to Kristalina’s nomination by the European Union, based on public reporting and the, albeit sparse, official information made available (reflecting Brussels’s location in the centre of the known IMF universe, all times are CEST).

  • 2 July: Aaaaand we’re off! Lagarde announces her European Central Bank presidency nomination and relinquishes her responsibilities as IMF MD during the nomination period.
  • 8 July: Bloomberg reports European finance ministers say it is a “priority” for them to put another European in place, jointly presented by the EU and, in the words of French politician Bruno Le Maire, “without useless rivalries” (erm, should we just stop there?)
  • 12 July: The day the Dutch government demonstrates how aggrieved they really feel about being side-lined in the negotiations for top EU positions:
    • Dutch government nominates its former finance minister Jeroen Dijsselbloem and kicks off its lobbying campaign for his candidacy with key governments;
    • Dutch prime minister Rutte softens his stance on US requests to provide military support in the Strait of Hormuz and Syria ahead of his visit to the White House the following week.
  • 16 July: Lagarde submits resignation as IMF MD effective from 12 September, after being confirmed as new ECB president.
  • 19 July: José Antonio Ocampo, former nominee in 2012 for World Bank president, with “experience in all the areas that might be considered most relevant for the IMF Managing Director post”, publishes his vision for reforming the IMF toward a more effective and inclusive future – to deafening silence from officials…
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Call on civil society organisations and academics to sign the campaign Letter to end the ‘gentleman’s agreement’

The ‘gentleman’s agreement’, which has ensured that the IMF managing director has, for 75 years, been European and the World Bank president a US national, is undemocratic and illegitimate. 

Bretton Woods Project, alongside our global partners, has drafted a campaign letter to be sent to IMF executive directors, governors and deputy governors, calling on them to bring about a genuinely open, democratic, merit-based, transparent process, that goes beyond rhetorical commitment, and allows any government, regardless of nationality, to put forward candidates on an equal footing.

If you are a civil society organisation or an academic interested in supporting the campaign, send an email to mbrett@brettonwoodsproject.org, who will send you a copy of the letter to sign. The deadline for signatures is close of play on Thursday 15th August.

75 years is enough – It is time to end the ‘gentleman’s agreement’.

Experience matters

Experience and qualifications matter, though of course they aren’t the only factor in success. But understanding the issues could be argued to be even more important at the IMF, which deals with complex topics in macroeconomic management, than at other international institutions.

Christine Lagarde, despite her tenure as French finance minister, came in with limited understanding of macroeconomics from her experience in the legal world. Her departure presents the world an opportunity to look at candidates for the IMF top job based on their merits. So which of the candidates being mentioned in the media have the most relevant experience and qualifications?

The following table summarises experience and qualifications of six frequently mentioned candidates along six criteria.

Partial points are awarded to Ms. Georgieva on experience in low- and middle-income countries because while she worked on these types of countries at the World Bank, her only period working in a low- or middle-income country was as an academic in Bulgaria. Mr. Rajan also gets partial points for management within an intergovernmental setting, as he was Chief Economist at the IMF, which while intergovernmental in nature, his department was supposed to be insulated from intergovernmental negotiations.

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In the news

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