Senior fellow Arvind Subramanian was quoted in a Wall Street Journal article about the IMF.
From the Article
The International Monetary Fund Tuesday named White House economic aide David Lipton, known for his crisis-management skills, as the fund's next No. 2 official.
It also tapped former deputy governor of the People's Bank of China, Zhu Min, to be one of its four deputy managing directors.
Lipton's appointment comes as Europe's debt crisis threatens to implode a fragile global recovery. It also preserves the decades-old convention that the U.S names the No. 2 official at the fund and Europe taps one of its own as IMF chief. He will formally replace current First Deputy Managing Director John Lipsky in September, though start as an adviser in late July.
Zhu's appointment is part of a plan promised by the new head of the fund, former French finance minister Christine Lagarde, to be more inclusive of emerging markets. It marks the first time one of Beijing's officials has had a seat at the IMF's senior management table. The fund already has three deputy managing director positions and created the new spot for Zhu, promoted from his current role as special adviser to the fund's managing director.
Lagarde said Lipton will bring "a proven track record in economic crisis-management" to the fund. The IMF's most pressing priority is trying to solve the European sovereign debt problem. Besides holding the largest voting seat on the IMF's board, the U.S. is able to directly influence fund policy by maintaining appointment of the No. 2 spot.
Zhu and Lipton's appointments follow both Beijing's and Washington's backing of Lagarde in her campaign for the top post at the IMF over that of Agustin Carstens, Mexico's central bank governor.
"It must be quid pro quo. How can it not be?" said Arvind Subramanian, a former IMF economist now at the Center for Global Development. "Still, Zhu is very good and articulate, and this is a good way for China to start savoring the benefits of global leadership, while also experiencing its challenges and responsibilities."