Barry Eichengreen argues that selection of the next managing director of the IMF should be based on merits, not geographic location.
The obvious choice is Asia, home to the most dynamic emerging markets. It is the region to which the world’s economic center of gravity is shifting. If you ask Asian leaders what would make them consider again approaching the Fund after their traumatic experience with IMF “assistance” in 1997-1998, they will answer: an Asian managing director.
In fact, this is precisely the wrong way to think about the problem. The IMF’s problem in the past has been parochialism and lack of accountability. The best way to ensure that the Fund remains open to new ideas is by selecting the person with the best ideas to lead it. The best way to ensure that the IMF’s management is accountable to all of its governmental shareholders is to prevent the top job from becoming the sinecure of any region, whether Europe or Asia.
The next managing director should be selected on the merits, not on the basis of nationality. There should be an open competition, in which the best candidate wins on the basis of his or her ideas.
The next managing director should be selected on the merits, not on the basis of nationality. There should be an open competition, in which the best candidate wins on the basis of his or her ideas.
Asia has plenty of competent economic officials who might be considered as the next managing director of the IMF. But just because they are Asian is not reason enough to select them.
