Economic Outlook and the IMF Managing Director Appointment. Yesterday, the IMF, which was originally mandated to prevent another global Great Depression, announced that the process to appoint its Managing Director for the 2. In the midst of a U. S. Congress having just authorized funds to double the U. S. But, as things stand, no Americans need apply. There are two reasons. First, under a long- standing . In return, the president of the World Bank is always an American. As a result, every IMF Managing Director in its 7. European. Second, this is no open competition. Like a closed country club, candidates have to be nominated first to be considered. Jack Lew, the Treasury Secretary, has the authority to nominate and vote on this matter on behalf of the US. But if he chooses to follow the precedent of the informal US- Europe arrangement, he will not nominate an American. World Economic Forum on Latin. According to IMF predictions, the global economy will grow modestly in 2016. Global economic outlook bright. Eighty percent of Korean executives feel that the outlook for the global economy is more positive than six months ago. Earlier in topic 2 we saw that our market economy typically experiences economic instability with booms. Sober economic outlook. Managing talent in a turbulent economy. Managing resources for a resilient economy Green Alliance policy insight. The Eurozone economy was supported by a. Illustrations by Stephanie Dalton Cowan Global Economic Outlook: 1st Quarter 2016 . Managing editor Aditi Rao Contributors Akrur Barua. Update on the International Economic Outlook. A gradual acceleration in the global economy. Economic Outlook More Like This. Nonresidential Construction Bounces Back With the Broader Economy. Shortly after completion, she began a freelance career and working as editor of the Managing Your Business eNewsletter. And if someone else nominates an American, Mr. Lew will not vote for that American. There are two reasons why this is a bad deal for America. First, the World Bank is declining towards irrelevance as developing countries increasingly rely on private finance. Indeed, this has gone so far that Professor Woods of Oxford University says the World Bank needs to be . But the process of country club- style nominations means that most global talent is excluded from any consideration. If a candidate lacks a political . The three European incumbents prior to Madame Lagarde have all been the subjects to legal proceedings and/or scandal. And the IMF, tasked to prevent Global Depression, has evidently failed to do so, as the Lehman's, Euro, and ongoing crashes illustrate. So this is not all a matter of murky machinations in some arcane international bureaucracy; IMF failures are directly reflected in both the US economic crisis from 2. The most ordinary of Americans have paid dearly, including in soaring unemployment and crashing home values after 2. IMF failures. And, as pointed out in these pages yesterday, the performance of the incumbent in the job continues these shortcomings. With the global economy under renewed threat now, the US and the World urgently needs the IMF to do its job better than this. This establishes a compelling American interest to terminate the . That was then, and is still now, an obvious recipe for conflict of interest. Such a situation would not be tolerated by the Federal Reserve or any other US financial regulator in any U. S. And the IMF itself condemns such arrangements anywhere in the world that it finds them. So within hours of the appointment process being announced, many of them- -France, Germany, the UK, the Netherlands, and others- -quickly announced that they would nominate a European politician to hold the post again. They have all renominated the incumbent, Madame Lagarde. And their plan is to sew this all up as quickly as possible. Nominations close as early as February 1. March. If they succeed, Madame Lagarde's reappointment will ensure that a European politician will retain control of the IMF reins on behalf of the European debtors for at least another half- decade. It is up to Mr. Lew, on our behalf, to address this challenge to US economic stability over the next five years now. Accordingly, in defense of common sense best financial practice, he should terminate the informal agreement with Europe with immediate effect. In particular, he can nominate and vote for one of many excellent American candidates. As the US is the largest single IMF shareholder, and we hold a blocking vote there, Mr. Lew's assent to any candidate, including the incumbent, is required. So, for example, he could nominate someone of the high calibre of Christina Romer, former Chair of the Council of Economic Advisors. But he can do even better. If there is a global citizen whose technical credentials outshine even the best American, Mr. Lew should nominate and vote for that person. Because what America needs for its economic security in the next five years is not an American in that job, but the best person in that job. But so long as Europe is the IMF's largest debtor, that job cannot be held by a European, least of all by a European politician, because of the evident conflict of interest. So once voting on the nominee for IMF Managing Director begins in February, Mr. Lew's bottom line on behalf of the United States should be as follows: no Europeans, and amongst the others, only the most highly professionally qualified, of whatever other nationality, including American. If Mr. Lew will not commit to do this now, the US Presidential candidates, on both sides, should demand to know why this is not to be part of America's economic plan over the next five years to avoid another economic crisis. References. Clinton: US welcomes women to lead the IMF.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
December 2016
Categories |