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Kristalina Georgieva named IMF managing director
WASHINGTON, Sept 26, 2019 (BSS/AFP) – The International Monetary Fund on
Wednesday formally selected Kristalina Georgieva of Bulgaria to be only the
second woman ever to lead the 189-member institution.
The selection had been all but guaranteed after the global crisis lender
said earlier this month that Georgieva, a former World Bank CEO, was the sole
candidate.
In acknowledging her selection, Georgieva spoke of tempestuous times for
the global economy.
“It is a huge responsibility to be at the helm of the IMF at a time when
global economic growth continues to disappoint, trade tensions persist, and
debt is at historically high levels,” she told reporters.
“This means also dealing with issues like inequalities, climate risks and
rapid technological change.”
Georgieva is to take up her position as managing director on October 1,
replacing Christine Lagarde, who is expected to take over the European
Central Bank later this year.
She inherits the helm of an institution buffeted by the rise of populism
in advanced economies and escalating trade conflicts — the largest of which
has been driven by the United States, the fund’s single biggest shareholder.
Her rise perpetuates Europe’s long-standing control over the designation
of the fund’s leadership.
Georgieva, who was championed by Paris, overcame a challenge within the
divided European Union from Germany, which had backed former Dutch finance
minister Jeroen Dijsselbloem.
French Finance Minister Bruno Le Maire tweeted his congratulations on
Wednesday, saying the IMF will “thanks to your experience be able to fulfill
its role in the world economy.”
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– Clear path –
In a sign that Georgieva was indeed a shoo-in for the position, the fund
this month formally lifted its age limit of 65 years for the leadership
position, removing an obstacle that would have barred the 66-year-old.
Under an unwritten rule, a European has led the IMF since its creation in
the aftermath of World War II while the leader of the fund’s sister
organization, the World Bank, has been designated by Washington.
David Malpass, a former US Treasury official who took office earlier this
year as president of the World Bank, likewise faced no opposition.
An economist by training, Georgieva was previously Bulgaria’s EU
commissioner from 2010 and served as the commission’s vice president for
budget and human resources from 2014 to 2016.
In 2016, she was a leading candidate to become UN secretary-general before
losing out to former Portuguese premier Antonio Guterres.
Jubilee USA, a faith-based debt-relief organization, hailed Georgieva’s
selection.
“Under Georgieva’s leadership, we will see emphasis on gender inequality,
environmental issues and the need for more resources to be directed to the
developing world,” Eric LeCompte, Jubilee USA’s executive director, said in a
statement.
BSS/AFP/HR/0915