Lagarde and the IMF

Disappointing but unsurprising that Christine Lagarde has got the top job at the IMF. I don't say this because I thought she was a weak candidate or won't do a good job, By all accounts she is very capable. The sad thing is that even under these extraordinary circumstances, it is business as usual when it comes to running such a critical institution. If this was not the moment to make a break with the old arrangements, and to declare that these positions are no longer filled according to a system of entitlement, one wonders what it will take--especially when such outstanding alternative candidates (Augustin Carstens, Stan Fischer) were in the running.

Arvind Subramanian at the Peterson Institute sums the case up very well.

Mohamed El-Erian gives Lagarde some advice on what to do next. I will be interested to see how one of his suggestions, in particular, fares.

Ms Lagarde should reinforce her commitment to a meritocracy by eliminating other nationality-based appointments. She should start with the replacement for John Lipsky, the fund's first deputy managing director, an American who announced his intention to step down a few days before Mr Strauss-Kahn was arrested. This choice must not be another nationality-based directive - this time from the US.

I'm sure the US expects a quid pro quo for its support of Lagarde. But we'll see. I'd be delighted to be proved wrong.

Presented by

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well. Bestselling author Mark Bittman teaches James Hamblin the recipe that everyone is Googling.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well.

Video

Before Tinder, a Tree

Looking for your soulmate? Write a letter to the "Bridegroom's Oak" in Germany.

Video

The Health Benefits of Going Outside

People spend too much time indoors. One solution: ecotherapy.

Video

Where High Tech Meets the 1950s

Why did Green Bank, West Virginia, ban wireless signals? For science.

Video

Yes, Quidditch Is Real

How J.K. Rowling's magical sport spread from Hogwarts to college campuses

Video

Would You Live in a Treehouse?

A treehouse can be an ideal office space, vacation rental, and way of reconnecting with your youth.

More in Business

Just In