Tuesday, June 14, 2011

New IMF Head: Carstens or Lagarde?

Have you been following Carstens vs. Lagarde story? If not, here's the most recent scoop from BBC News:
Mr Carstens himself acknowledges Ms Lagarde is the favourite to replace Dominique Strauss-Kahn at the IMF.
"I'm not fooling myself. It's like starting a soccer game with a 5-0 score," he said on Monday.
He says he would bring "a fresh pair of eyes" to the role. 
A European, he says, could face a conflict of interest, given the continuing debt crisis in some eurozone countries, while he can appreciate what emerging markets can contribute to the IMF.
But the fact he is from the Americas could work against him.
Robert Zoellick, from the US, currently heads the World Bank and some countries may not be keen to see the two global institutions led by officials from the same part of the world.
Traditionally, an American has headed the World Bank while a European has been in charge of the IMF. 
And while Mr Carstens has the support of most of Latin America, Brazil - the region's largest economy - has yet to say whom it will back. 
For Mr Carstens to be successful, he would almost certainly need Brazil to back him.

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