User:Ventenpane/Enter your new article name here

International Monetary Fund Managing Director election 2011 The selection process for the new Managing Director of the IMF in 2011 presents characteristics that have never been seen. The balance of power that held the unwritten rule that assigned the leading position of the IMF to a European seems to be changing as the developing nations acquire more weight. In particular the BRIC nations, together with South Africa and Mexico, have expressed their strong opposition to assign the Managing Director position based on geographical characteristics as opposed to a merit based approach.

Candidates

The first two openly announced formal candidates were Agustin Carstens, Mexico´s Central Bank Governor, and Christine Lagarde, France´s Minister of Finance. The statements and resumes of the candidates present their personal backgrounds and their perspectives on the role of the IMF.

	Lagarde, Christine	Carstens, Agustin
Nationality	French	Mexican
profession	Lawyer	Economist
Education		Bachelor of Arts ITAM PhD - University of Chicago
Specialization	Labor, Anti-trust and Mergers Acquisitions (Law)	International economics and finance, and economic development
Career	25 years in private practice Baker McKenzie: Associate in 1981. Member of the Executive Committee in 1995. Chairman of the Global Executive Committee in 1999. Chairman of the Global Strategic Committee in 2004. 6 Years French Public Sector: 2 years Foreign Trade Ministry and Minister for Agriculture 2005-2007 Minister. From mid 2005 to mid 2007. 4 years Ministry for Economy, Finance and Employment. Minister. From mid 2007 to date. Under this position, I have been in charge of France's economic policy and have held the position of Governor for France for the IMF, the World Bank, the regional development banks and the Global Environment Facility. Before co-chairing the G20 and G7 Finance Meetings in 2011, I was chair of the EU's Economic and Financial Affairs Council in the second half of 2008.	Over 30 years of public service: 19 years Mexico’s Central Bank 1980-1999 Foreign exchange trader Treasurer, Chief of staff to the Governor Head of the Economic Research Department (Chief economist). 2 years International Monetary Fund 1999-2000 Executive Director at the Fund, representing Mexico, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Venezuela, and Spain. From mid-1999 to late 2000. 3 years Mexico’s Ministry of Finance 2000-2003 Undersecretary. From late 2000 to 2003. Responsible for macroeconomic planning, financial sector regulation and supervision, coordination and oversight of our development banks, Mexico´s relationship with international financial institutions, and debt management. 3 years International Monetary Fund 2003-2006 Deputy Managing Director (DMD). This provided me with the opportunity to work closely with two distinguished European Managing Directors: Horst Köhler and Rodrigo de Rato. In my purview as DMD, among other issues, I had the responsibility of managing the Fund´s relationship with over 70 countries. These included countries from Europe (among them, Italy, Spain, Greece, Portugal, and Belgium); North Africa and the Middle East (including Tunisia, Morocco, and Lebanon); Africa (Mali, Senegal, Tanzania, Burundi, and others); Asia (including Philippines, Malaysia, Cambodia, and Pakistan); Latin America (from Uruguay and the Dominican Republic to most of the Caribbean nations); and several other countries as varied as Armenia and Australia. 3 years Mexico’s Ministry of Finance 2006-2009 Minister of Finance. I was responsible for tax policy, tax administration, customs, expenditure and debt management, and financial sector regulation and supervision. 1 year Governor of Banco de México, the country’s autonomous Central Bank. From 2010-to date.
Economic Policy Record	As chair of the EU's Economic and Financial Affairs Council in the second half of 2008 I significantly contributed to urgent crisis resolution mechanisms. During the economic and financial crisis, I took a twofold course of action at national level. In terms of crisis management, I led efforts by the French authorities to shield the French economy from the impact of the banking crisis. Early on, France decided to provide support for its banks in order to avoid a credit crunch and its recessionary impact. In addition, I worked to pave the way for sustainable growth in the aftermath of the crisis. My two priorities were fiscal consolidation and competitiveness. Fiscal consolidation, including a comprehensive pension overhaul, was important because the crisis had weighed heavily on the country's public finances. My second priority was to prepare France's future growth drivers. We decided to invest heavily not only in research and development -- by means of a powerful tax incentive to develop facilities in France -- but also in the industries of the future. Concurrently, I worked to improve regulation of the intemational financial system, in order to eliminate the excesses of a system that unregulated market forces had brought to the brink of collapse. The G20 can take credit for the first-ever initiative to improve regulation of OTC markets, and a historic increase in bank capital under the Basel standards. On the domestic front, in an effort to learn from the crisis, I decided on an ambitious reform of the French supervisory system for banks and insurance companies.	When I started as an economist in 1980 Mexico was experiencing severe economic problems: very high inflation, disorderly public finances, monetary policy dominated by fiscal considerations, an unsustainable fixed exchange rate, a weak balance of payments, excessive public debt, and a poorly supervised and regulated financial system. Even though Mexico continues to confront challenges in terms of economic and human development, poverty alleviation and income distribution, today the country is enjoying rapid economic growth, low and controlled inflation, no balance of payments problems, record levels of international reserves, near balanced public finances, a debt to GDP ratio of approximately 35 percent, and a solid banking system which to a large extent is already Basel III compliant. This structural transformation required a major overhaul in the economic policymaking in my country. Since early on in my career I have had the opportunity to participate in the policymaking relevant to this transformation, with more of a direct and substantial contribution as my responsibilities have increased. Among the most significant policy transformations in Mexico that I have participated in, I would like to highlight the following: 1. The establishment of the autonomy of Banco de México; 2. The external debt renegotiation in 1989, under the Brady Plan; 3. The shift from fixed to a managed, and finally to a freely floating exchange rate regime; 4. The reform of Mexico´s pension fund system, in several stages; 5. The strengthening the regulation and supervision of Mexico´s financial system, from a situation where we had sequential banking crises (up to 1995) to today´s situation where we have a strong, well-capitalized banking system; 6. Several fiscal reforms, including two under my watch as Minister of Finance; 7. Also as Minister of Finance the approval of four Federal Budgets presented by a minority government, which required extensive political negotiations; 8. The inclusion of collective action clauses in Mexico´s external debt in 2002; 9. The recent creation of a Financial Stability Council; 10. Strengthening of the inflation targeting regime followed by Banco de México since 2001; 11. The design and implementation of the hedging program for Mexico´s public finances´ oil price exposure through derivative markets; and 12. The use of the IMF´s Flexible Credit Line (FCL) as a commitment vehicle to assure solid macroeconomic management. Let me stress that all these reforms have been the result of successful teamwork, which is essential, particularly in situations of crisis management, where I have ample experience.
Perspectives for the Fund	Over the past few years, the Fund has definitely changed for the better, successfully repositioning itself at the centre of the global economic and financial system. It learnt a great deal from the recent financial crisis, including openness to new ideas, while remaining loyal to its core values and principles. In recognition of this, the international community has entrusted the Fund with a pivotal role with respect to global economic and financial cooperation. Under Dominique Strauss--Kahn's leadership, the lMF's resources, tools and govemance have all been strengthened and the stigma often attached to Fund financing has been reduced. Increased resources improved the Fund's capacity to respond effectively to the biggest economic and financial crisis since the Second World War. Reformed instruments with more appropriate conditionality are now available to help prevent and resolve crises. Last, but by no means least, its governance was significantly reshaped to better reflect the economic weight of emerging market economies, whilst still providing protection for low income countries. The legitimacy and effectiveness of the IMF cannot be taken for granted; they must be continuously proved, and improved, whenever possible or necessary. I firmly believe that the IMF needs to continue its shift towards responsive, even-handed and balanced action in support of global economic and financial stability, the better to serve all IMF members. Under the next Managing Director's mandate, the IMF must maintain and develop what continues to be its primary asset -- its universality and its ability to reinvent itself to provide assistance, in all forms, to all members, under changing economic and financial circumstances. The IMF's actions in view of the exceptional situation in Europe have been outstanding. We should ensure that it can achieve similar results -- and continue to display similar responsiveness -- for other regions in the world that may be in difficulty. The Fund's most pressing challenge today is not just playing its role to the fullest extent in Europe, but also responding to requests for assistance from countries in the Middle East and North Africa region. Its contribution to fostering growth there will demonstrate the Fund's capacity to respond to members based on circumstances and need. More broadly, the IMF has a key role to play in assisting low-income countries, especially in Africa. We should make full use of policies, instruments and technical assistance to address the needs and specificities of developing countries. To succeed, coordination with other partners, including the World Bank, will be decisive. For better crisis prevention and tailor-made policy advice, the IMF needs to carry out tougher, more effective and more consistent surveillance. Beyond its primary mandate of ensuring the stability of exchange rates, it needs to improve the integration of financial sector expertise into its surveillance, working in cooperation with the Financial Stability Board and other relevant bodies. lt must also strengthen multilateral surveillance by addressing global interdependencies. I believe that spill-over reports should become a permanent surveillance tool. IMF surveillance should also look beyond these core elements, factoring in structural and public finance issues, as well as social and employment policies. To adapt to changing economic realities, the Fund will need both sufficient resources and adequate tools. This will require sustained attention. In my view, this effort requires also to enhance cooperation between the Fund and regional financial arrangements. At the same time, we need to provide the Fund with the capacity to address systemic shocks. More generally, the IMF must continue to take the lead in the long-term endeavor to reform the international monetary system. Increased legitimacy is the cornerstone of these reforms. One obvious prerequisite would be to implement the historic governance reform that was agreed last year. Further consideration could also be given to strengthening the accountability of the Fund, and would welcome the launch of a review by the IMFC Chair. More broadly, I firmly believe that the representation of the Fund should continue to adapt to changing economic realities, as should quotas. The IMF staff are its most precious asset. Their dedication and expertise have to be nurtured and protected, whilst ensuring equal opportunities and diversity in all its facets. This is an area where progress should be achieved. Should you entrust me with this task, I would strive, over the next live years, to build an IMF that would be: Responsive -- ready and able to meet all challenges, both foreseen and unforeseen Cooperative -- listening and coordinating effectively with all stakeholders, and continuously striving to build consensus Legitimate and even--handed -- to reflect of a changing world.	The global financial crisis has vividly demonstrated how interconnected our world has become in the 21st century. While globalization has lead to unprecedented growth for many countries, be they advanced, emerging, or low income, the crisis reminded us that in an interconnected world maintaining stability and avoiding and resolving crisis is a collective responsibility. The IMF plays a unique role as the platform for global economic collaboration. With 187 member countries, it has a truly global representation, and with a staff that is both high caliber and diverse, it has the intellectual firepower and credibility to deliver objective, quality analysis and practical solutions, in short, to serve as the trusted advisor to member governments. In the last few years, the international community has taken some important steps to strengthen the IMF: 1. The representation in particular of dynamic emerging market economies was increased to better reflect their economic weight in the world, while poorer countries were protected. These adjustments required substantial political effort on the part of many countries, and the success of the reform is testament to the international community´s recognition of the importance of the Fund´s legitimacy. 2. The global financial safety net was revamped and new instruments were developed to avoid and resolve crises. My country, Mexico, benefitted from liquidity insurance that the IMF provided which helped us contain the spillovers of the global crisis. 3. And the IMF’s financial resources were increased to make its crisis fighting capacity commensurate with the size of the challenges in a globalized world. While much has been achieved by this joint effort of the international community, the reform agenda remains unfinished. Unfortunately, with countries emerging from the global crisis with diverging problems, incentives and enthusiasm for joint action is fading. Advanced countries are focusing on fiscal reforms to ensure medium-term fiscal sustainability; many emerging market countries in Asia and Latin America are struggling with managing large capital inflows and a few are starting to face overheating; and middle and low income countries in particular have been hit hard by commodity price increases. At the same time, Europe is focused on the crisis in some Eurozone members, and many countries in the Middle East and North Africa are at the beginning of a long political and economic transformation. There is no doubt that the Fund has to serve all its membership. Needless to say there always will be urgent country-member issues (such as the recent crises in the Eurozone and in the Middle East and North Africa) that will need to take precedent, and will absorb the attention of the Managing Director, irrespective of his/her nationality. Precisely one of the challenges that any MD faces is to identify the issues that require the most prompt and appropriate response by the institution. This would allow the deployment of resources (human, technical and, in given cases, financial) to support the member countries in greatest need, but this should be done without disregarding the rest of the membership. Always there will be countries with other issues to tackle, and the Fund should be in a position to respond to their needs also. We know where the current crises and urgent matters are today (Europe, the Middle East, and North Africa), but we do not know with certainty where the next ones will erupt. Therefore we need a Managing Director who can best serve all of the member countries, not merely those experiencing challenges at one particular point in time. While all crises erupt locally, in today’s interconnected world they have the potential to affect us all. But for us to act, we need a legitimate global framework so that the international community can effectively support individual countries in their own reform efforts. And therefore the governance reforms that have begun need to be solidified and completed. To remain relevant, the Fund will have to deliver on improving the international monetary system, whose deficiencies were once again made evident during the crisis. Fund work on global imbalances and capital flows will require bold consensus building and the will of its membership to move forward. The Fund must also pay special attention to its members from low income countries (LIC). While the current crisis has diverted global attention from the fight against poverty, LIC assistance through appropriately funded programs is essential for crisis resolution, and in this capacity, the Fund is also in a unique position to make a significant contribution toward the fight. As for crisis prevention in LIC and middle income countries, I cannot think of a better instrument than the Technical Assistance (TA) provided by the Fund. During my tenure as Deputy Managing Director I heard firsthand from many of you about the benefits TA had brought to your countries. I also know from you that more work by the Fund is needed during the implementation phases of its TA recommendations. At the same time, while emerging markets representation has been strengthened in global economic decision making, it is imperative that they have a stronger voice in the design and implementation of the Fund´s policies. This should come with their sharing more fully the responsibility of being stewards of the global economy. Finally, the Fund must remain legitimate in its three operational dimensions: staff, Executive Board, and Management. A diverse staff enhances legitimacy by providing a more balanced perspective and by being more attuned with member countries. The 2010 voice and representation reforms go a long way in addressing Executive Board imbalances. In the future, this process needs to continue. The next Managing Director of the IMF must serve the member countries by leading the institution and its staff and, in accordance with the Fund´s mission, help forge political consensus amongst members for policies that maximize global welfare.
Managerial skills		My responsibilities in the Central Bank, Ministry of Finance, and the IMF have allowed me to acquire the skills to manage very complex institutions, including one with multinational and diverse staff, and with international operations, such as the Fund. I have worked closely with the Fund´s staff and I know they are its most important asset.
Diplomatic skills and appreciation for multilateral cooperation		Very early in my career I recognized the importance of diplomacy. Mexico has traditionally been an active participant in multilateral affairs (indeed, Mexico is a proud founding member of the Fund, having participated in the 1944 Bretton Woods Conference). I acquired diplomatic skills on the job in my country, which were further shaped and enhanced during the time I served in the Fund as Executive Director (ED) and as DMD. In fact, in my purview as DMD, I was responsible for managing the IMF´s relationship with other international financial institutions (excluding the World Bank), and the United Nations system, which gave me both experience and profound appreciation for effective coordination among multilateral organizations.