Let us not be blinkered by haste and the Euro-zone crisis
Thursday May 19, 2011
by Jo Marie Griesgraber, Executive Director, New Rules for Global Finance
The resignation of DSK is a sad, even tragic ending, to an IMF leader who did manage to begin to pry open the institution. New ideas were infiltrating the Fund on capital controls, macro-economy, finance and even accountability. Of course all was not well in terms of transparency, awareness of the impact of policies on the poor or the environment--whether before policies were required or after the fact. The distribution of power among countries remains highly skewed in favor of status quo powers, with little space for the myriad small and poor to speak or better to influence the institution. But, like the G20, the IMF Board has elevated the emerging major economic powers--all without the need for another world war.
But now our focus must be on the leadership process that is inclusive, transparent and merit based. The IMF and World Boards prepared a long-ignored joint document on how to execute such a process. The IMF Board alone on July 12, 2005 issued its own clear roadmap on how to conduct such a selection process, which was again ignored.
The drama and speed of the leadership change this time cannot be used as another excuse to revert to old ways. The Executive Board must exercise the power that is theirs and conduct a merit-based search. Europe does not need to be excluded, but it cannot act as the presumptive heirs to a throne. And the problems of the euro and of European debt are not a basis for any selection preference--No Latin American or African was chosen when their regions were in crisis; nor an Asian during the Asian crisis. There are many women and men who are well qualified for this position. Let the search begin.
- Comments on Governance and Impact Report - Paul BlusteinNovember 07, 2013
- Insight to CSO Views on Fiscal TransparencyOctober 16, 2013
- The Wall Street Alchemist - How does financial innovation impact the real economy?April 23, 2013
- Overexposed and Under-reported: Bank Disclosure of RiskJanuary 18, 2013
- Sovereign Debt: Solving InsolvenciesJanuary 09, 2013
- Why is a Human Rights Approach Needed in Financial Regulation?December 11, 2012
- IMF's Re-engagement with Egypt: A New Economic PlanAugust 22, 2012
- Note on Quota Formula Review: Initial ConsiderationsMay 03, 2012
- Contenders for the World Bank PresidencyMarch 29, 2012
- Thoughts on the Greek CrisisFebruary 14, 2012
- Thinking the Eurozone UnthinkableFebruary 07, 2012
- Under the Microscope: Some Findings from the 2011 Triennial Surveillance ReviewDecember 01, 2011
- Let us not be blinkered by haste and the Euro-zone crisisMay 20, 2011
- Stratospheric pay in financial services: a chronic example of regulatory failureMarch 25, 2011
- SDRs: a valuable tool for enhancing the legitimacy of the international monetary systemMarch 08, 2011