Next IMF boss likely to come from outside Europe

Published July 25, 2015
The next managing director of the IMF is likely to come from outside Europe when current leader Christine Lagarde eventually leaves. -AFP/file
The next managing director of the IMF is likely to come from outside Europe when current leader Christine Lagarde eventually leaves. -AFP/file

LONDON: The next managing director of the International Monetary Fund (IMF) is likely to come from outside Europe when current leader Christine Lagarde eventually leaves, the deputy head of the Washington-based fund said in an interview broadcast on Saturday.

IMF First Deputy Managing Director David Lipton told the BBC World Service the tradition by which a European heads the fund while an American leads the World Bank was coming under pressure and the next appointment would be "strictly merit-based".

Described on the same radio programme as an "incredible anachronism" by former IMF Chief Economist Kenneth Rogoff, the convention that has ensured that Europeans lead the fund has been increasingly challenged during the euro zone crisis.

Lipton said that when Lagarde steps down, her successor would probably come from a non-European country.

"With candidates coming forward from around the world, I think it's much more likely the next time around than it has ever been," he said.

"There are more and more eminently qualified people from outside Europe and the United States and I think the fact that there's been so much focus on crisis in the United States right at the early stages of the global financial crisis and with Europe, is going to lead to a sense that there has to be a broader pool for the leadership role," Lipton said.

Lagarde, a former French finance minister, took over as head of the IMF in 2011 after her predecessor, Dominique Strauss-Kahn was forced to resign over a sex scandal.

Read More: Dominique Strauss-Kahn resigns as IMF chief

Her five-year term comes to an end next year but she was quoted last month as saying she would consider a second term if she had the support of the IMF's members.

Although there is no formal requirement that the leader of the IMF come from Europe, it has been the practice ever since the institution was set up after World War Two, while the World Bank has always been led by an American.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Punishing evaders
02 May, 2024

Punishing evaders

THE FBR’s decision to block mobile phone connections of more than half a million individuals who did not file...
Engaging Riyadh
Updated 02 May, 2024

Engaging Riyadh

It must be stressed that to pull in maximum foreign investment, a climate of domestic political stability is crucial.
Freedom to question
02 May, 2024

Freedom to question

WITH frequently suspended freedoms, increasing violence and few to speak out for the oppressed, it is unlikely that...
Wheat protests
Updated 01 May, 2024

Wheat protests

The government should withdraw from the wheat trade gradually, replacing the existing market support mechanism with an effective new one over the next several years.
Polio drive
01 May, 2024

Polio drive

THE year’s fourth polio drive has kicked off across Pakistan, with the aim to immunise more than 24m children ...
Workers’ struggle
Updated 01 May, 2024

Workers’ struggle

Yet the struggle to secure a living wage — and decent working conditions — for the toiling masses must continue.