IMF Selection Process Lengthy, But Choice… by Ambassador mo List of likely winners is rather short. More interesting question is what will process deliver that is currently perhaps unexpected in terms of Deputy selection and/or policy transformation. While the process that the IMF has set out is not likely to be concluded for a month or longer, the France and the European Union have acted deftly in the face of rising “rebellion” to the long-standing tradition of a European Chief. Europe Rallies with a Woman’s Help Europe has rallied around an experienced, capable and female candidate Christine Lagarde, (CL) the current French Minister of Finance. On the other hand, the “developing” economies have fostered a range of candidates, most very qualified but lacking two key ingredients: no unified support behind them and not a woman. After Dominique Strauss-Kahn’s (DSK) assault upon a woman, the Europeans quickly got religion. Politically correct was not DSK’s original selection, as he was then coming with not only sexual baggage but an inappropriate attitude toward women. Rather than be penalized for that faux-pas in selecting DSK, the French and Europeans have come up with the perfect anti-DSK candidate – she even speaks English without the traditional French accent. United Behind Best Candidate However, don not confuse selection of CL as being a by product of DSK’s misdeeds. She is clever and capable. Besides leading the French Ministry of Finance, she was also Chair Person of one of the largest international firms, US based Baker & McKenzie. United in Opposition to “Tradition” But Not in Purpose Beyond However, the lengthy time in the selection process does give the “developing” countries, particularly China, an opportunity to push through two other agenda items: a “Developing” economy Deputy to replace the current American John Lipsky (who is conveniently scheduled to retire) and to perhaps push for a new IMF backed global reserve currency, “Special Drawing Rights” or SDRs. Be careful here as well though on your assumptions. The developing countries are neither united nor even necessarily developing. Rather, they may have been united in trying to jockey their “man” in place of a European for IMF Chief; however, they lack unity of purpose in what they want to do (versus as to what they were trying to oppose). This is also applies to the matter of the US Dollar versus SDRs. Game Finished – Selection Process a Formality? For those who may be interested in the formal nomination and selection process for new IMF Managing Director, the process is outlined below in this IMF Statement and the Film Report describing it by John Lipsky. It emphasizes transparency and openness to all nominations. The game is over though, and the France and EU have won, and are now only running out the clock careful not to commit a self goal. Related Reports at – diplomaticallyincorrect.org/c/international-financial-crisis ---“John Lipsky Speaks of IMF Selection Process” - diplomaticallyincorrect.org/films/movie/imf-selecting-new-chief-after-dsk/27013 ---“A French Woman or Asian Man - US Big Loser?” - diplomaticallyincorrect.org/films/blog_post/a-french-woman-or-an-asian-man-us-big-loser-by-ambassador/28143 By Ambassador Muhamed Sacirbey Face Book at “Diplomatically Incorrect” Twitter - DiplomaticallyX IMF Statement on Selections Process: The Dean of the Executive Board of the International Monetary Fund (IMF), Mr. Shakour Shaalan, made the following statement today: “I am very pleased to announce that the Fund's Executive Board has adopted a procedure that allows the selection of the next Managing Director to take place in an open, merit-based, and transparent manner. There was broad support in the Executive Board for this procedure.” The Executive Board approves the decision on the selection of the next Managing Director as outlined below: 1. The successful candidate for the position of Managing Director will have a distinguished record in economic policymaking at senior levels. He or she will have an outstanding professional background, will have demonstrated the managerial and diplomatic skills needed to lead a global institution, and will be a national of any of the Fund's members. As chief of the Fund's staff and as Chairman of the Executive Board, (s)he will be capable of providing strategic vision for the work of a high quality, diverse, and dedicated staff; and will be firmly committed to advancing the goals of the Fund by building consensus on key policy and institutional issues, including through close collaboration with the Executive Board, under whose direction (s)he will fulfill his or her responsibilities. (S)he will have a proven understanding of the Fund and the policy challenges facing the Fund's diverse global membership. (S)he will have a firm commitment to, and an appreciation of, multilateral cooperation and will have a demonstrated capacity to be objective and impartial. (S)he will also be an effective communicator. 2. An individual may be nominated for the position of Managing Director by a Fund Governor or an Executive Director during a nomination period which shall commence on May 23, 2011 and will close on June 10, 2011. All nominations shall be communicated to the Fund's Secretary, who shall obtain confirmation from each nominee of his or her willingness to be considered as a candidate. The Fund's Secretary shall hold the names of the nominees in confidence until the end of the nomination period. 3. At the end of the nomination period, the Secretary shall disclose to the Executive Board the names of those nominees who have confirmed their desire to be candidates. If the number of candidates exceeds three, the Executive Board will keep the names of these nominees in confidence until it has drawn up a shortlist of three candidates, taking into account the above candidate profile without geographical preferences. The shortlisting process will be implemented through indications of which candidates receive the most support among Directors, taking into account the Fund's weighted voting system, with the objective of completing the shortlisting process within seven days following the disclosure to the Board of the candidates. Although the Executive Board may adopt a shortlist by a majority of the votes cast, the objective of the Executive Board is to adopt a shortlist by consensus. The shortlist shall be published by the Fund. 4. The Executive Board will meet with the shortlisted candidates (or all of the candidates if there were fewer than four) in Washington, D.C. Thereafter, the Executive Board will meet to discuss the strengths of the candidates and make a selection. Although the Executive Board may select a Managing Director by a majority of the votes cast, the objective of the Executive Board is to select the Managing Director by consensus with the objective of completing the selection process by June 30, 2011.