May 18, 2011
Who's to head the IMF now?
Now that Strauss-Kahn has fallen, the race to replace him as head of the IMF has started. As Rodrik explains, "The Germans insist the new managing director should be from Europe [this is the tradition]. Europe's weak periphery wants someone who will be sympathetic to their cause and hit the ground running. Emerging market and developing economies ask for a leader that departs from the usual mold and will reflect their outlook and preferences for a change." He thus suggests Kemal Dervis would be the best candidate. On the other side of the blogosphere, though still in Cambridge, MA, Mankiw thinks Stanley Fisher would do a great job. Other news suggest Trevor Manuel, ex finance minster of South Africa, is also a potential candidate. Only Dervis is European. He's from Istanbul. Will this matter, once again?