CGD in the News

Fischer's Last-Minute IMF Bid May Not Slow Lagarde Momentum (Bloomberg)

June 13, 2011

CGD's survey about potential IMF leaders was mentioned in a Bloomberg article.

From the Article

Bank of Israel Governor Stanley Fischer’s last-minute bid for the International Monetary Fund’s top job may not slow Christine Lagarde’s momentum as she gathers support to run the Washington-based lender.

Fischer, 67, is betting his experience and a shortage of candidates will prompt IMF members to waive an age requirement that would exclude him from the managing director position, a person familiar with the situation said. Mexican central bank chief Agustin Carstens is also running.

Hours after Fischer announced his bid and the nomination period closed, Lagarde won the backing of three more countries - - Bahrain, Egypt and the United Arab Emirates -- securing the French finance minister’s place as the front-runner to succeed Dominique Strauss-Kahn. He resigned as managing director last month after being charged with attempted rape. Strauss-Kahn has pleaded not guilty.

“Fischer’s candidacy spices up the race and lends it a tinge of unpredictability but it is unlikely that this will knock Lagarde off her path to victory,” Eswar Prasad, a senior fellow at the Brookings Institution in Washington and a former IMF official, said in an e-mail yesterday. “The emerging markets are unlikely to view Fischer as a candidate who would effectively advocate for their interests. Besides, he is likely to be seen as essentially an American candidate, which endears him neither to Europe nor to the emerging markets.”

Read it Here.