Comments on: Why Lagarde needs a full term in office http://blogs.reuters.com/felix-salmon/2011/05/20/why-lagarde-needs-a-full-term-in-office/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: sanchk http://blogs.reuters.com/felix-salmon/2011/05/20/why-lagarde-needs-a-full-term-in-office/comment-page-1/#comment-26986 Mon, 23 May 2011 00:12:54 +0000 http://blogs.reuters.com/felix-salmon/?p=8348#comment-26986 With El-Erian’s approach, it would be a lot more efficient to vet the IMF deputy to the chief position, rather than go through the entire process of nominating candidates for these short spells. Look at the recent history of the IMF leadership – the last 3 leaders did not fulfill their 5 year terms. If we had a system whereby the replacements merely filled in the old director’s shoes for the remainder of their term, we’d have ended up with a higher turnover, and consequently a less stable organization.

El-Erian’s proposal would only really be logical if the deputy was being promoted to the IMF leadership – that would provide the right balance of fairness and stability. It doesn’t make sense though given the existing election process.

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By: chris251984 http://blogs.reuters.com/felix-salmon/2011/05/20/why-lagarde-needs-a-full-term-in-office/comment-page-1/#comment-26873 Sat, 21 May 2011 09:43:29 +0000 http://blogs.reuters.com/felix-salmon/?p=8348#comment-26873 Interesting, appreciate you posted.

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By: bxg21 http://blogs.reuters.com/felix-salmon/2011/05/20/why-lagarde-needs-a-full-term-in-office/comment-page-1/#comment-26860 Sat, 21 May 2011 02:05:04 +0000 http://blogs.reuters.com/felix-salmon/?p=8348#comment-26860 This job is, and will in the future be even more so, _important_. Putting economies right, massive macroeconomic implications for the affected countries: at the end of the day millions of lives will ruined or improved depending on IMF actions over the next few years.

But we should commit now to perhaps keeping the perhaps wrong person in the job for yet 3.5 years more because, hey, we were forced in May ’11 to give her a 5-year _contract_?!? She is going to be chosen and hired in an absurd and uncritical hurry (and against the principles that most “serious thinkers” think should prevail now) just because her predecessor found himself in Rikers and we had to act quickly. But really, is committing to stand by a choice-under-absurd-pressure more important than doing right by the poor around the world for the next half-decade- ?!?

If there’s value in revisiting the appointment in a short time, we should do so and be upfront that we will do just that. By all means write the contract so that she gets good severance pay for any time not served (in the scheme of things, this is beneath trivial). You yourself have (in essence) argued that this is a forced choice under the current circumstances. If so it is not just allowable, but almost morally mandatory, that we revisit the choice relatively quickly as soon as we have the luxury of taking more (indeed, any) care?

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By: dsquared http://blogs.reuters.com/felix-salmon/2011/05/20/why-lagarde-needs-a-full-term-in-office/comment-page-1/#comment-26852 Fri, 20 May 2011 17:21:50 +0000 http://blogs.reuters.com/felix-salmon/?p=8348#comment-26852 This is what you might call “Larry Summers syndrome” (and Brad DeLong did indeed suggest Larry Summers for this job) – the idea that there is something called “merit” which is all that needs to be taken into account and that political considerations should not enter into the equation for this political job.

The IMF is neither a mutual fund nor a university department. It’s a political appointment and it needs to be led by someone who can handle the politics. In fact, the *only* “merit based” criterion I would regard as relevant would be that since the IMF has too many academic economists already relative to political experts, it ought to be a cause for immediate disqualification of a candidate that they had an academic publishing record, or even a PhD qualification in economics.

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