IMF

FT Editorial: Saving the IMF for the world

No one foresaw the manner and suddenness of Dominique Strauss-Kahn’s departure from the helm of the International Monetary Fund. Thankfully, the transition to a new leadership has so far been less disruptive than one might have feared. By the end of the month, the next managing director will have been appointed. He or she – almost certainly she – will have to steer the IMF through big transformations, starting with the recruitment process itself.

The swiftness of this leadership transition is about the only thing to recommend it. The emerging world already suspected the eurozone of using the IMF as a piggy bank for its own sovereign debt crisis. Now European countries have short-circuited the recruitment process in favour of Christine Lagarde, the French finance minister, in violation of admittedly vague undertakings that Mr Strauss-Kahn would be the last stitched-up European placement. It would have been better for all, starting with Ms Lagarde herself, if she took office having prevailed in a genuinely open contest.

Next time, this will have to be different. The focus must shift from the geography of candidates’ origin to their programme for what the IMF should do. Would-be managing directors should have to present their plans in much more detail than was the case this time.

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