Following the nomination of Christine Lagarde to succeed Mario Draghi as President of the European Central Bank, the battle is on for who will succeed her at the International Monetary Fund (IMF).
European finance ministers need to reach a consensus over who will succeed Christine Lagarde as the head of the International Monetary Fund, French Finance Minister Bruno Le Maire said on Saturday.
One of the candidates is the Governor of the Bank of England and former Governor of the Bank of Canada, Marc Carney: his second term ends in January 2020, that is, a few months before Draghi is due to leave office.
Although Carney holds an Irish passport, he is a Canadian. Therefore, his candidacy breaks with a 73-year tradition of appointing a European, while keeping the World Bank under an American Governor, who is currently David Malpass.
Other names under consideration are the outgoing EU Competition Commissioner Margrethe Vestager, the World Bank’s chief executive Kristalina Georgieva, while with a French woman taking over the ECB, the chances of the Governor of the Bank of France François Villeroy de Galhau appear less significant. There is also a sizable pool of former high-profile politicians interested in the job, including the former Dutch finance minister Jeroen Dijsselbloem, the former Finnish prime minister Alexander Stabb, and the former UK Chancellor George Osborne.
The question is whether emerging economies could rally behind a single candidate to change the IMF tradition. In that case, Mexico’s Agustín Carstens who heads the Bank for International Settlements, India’s Raghuram Rajan, and Singapore’s Tharman Shanmugaratnam would be the names to look out for.
Policymakers will be looking for China’s role in this contest, especially as the Washington-based institution is like to bolster its capital base ahead of a global crisis that has hit economies such as Turkey and Argentina. The IMF lends to countries that have temporarily run out of money, imposing strict terms set by the board, and provides economic risk forecasts and technical advice.