Israel Matzav

Stanley Fischer in the running to be IMF chief

Bank of Israel chief Stanley Fischer is considered a leading candidate to head up the International Monetary Fund.

Bank of Israel Governor Stanley Fischer announced he was in the race to become the next head of the International Monetary Fund.

Fischer, 67, is a widely respected economist credited with successfully guiding Israel's economy through the global crisis.

He is nevertheless something of a dark-horse candidate, as France's Christine Lagarde and Mexico's Agustin Carstens are generally considered the leading contenders.

Israel's Finance Minister Yuval Steinitz said he would be backing Fischer's candidacy.

"A unique, unplanned and possibly and once-in-a-lifetime opportunity has arisen to run for the head of the International Monetary Fund, which after consideration, I decided I wanted to pursue," Fischer said in a statement.

"I believe I can contribute to the IMF and to the global economy in this period after the crisis," he said a day after the deadline for nominations closed.

How strong a candidate is Fischer? Consider this (Hat Tip: Gary P).

Based on professional qualifications and cultural fit, Stanley Fischer is the perfect candidate for managing director of the IMF. He would likely prevail in an open, transparent and merit-based selection process. The question is whether European attempts to preclude this can still be overcome by countries that care about the legitimacy of the institution and the beneficial role it should play in the global economy.

I worked closely with Mr. Fischer at the IMF in the 1990s, and followed his careers both before and after that – as a brilliant member of MIT’s renowned economics faculty, as a thoughtful and inspirational chief economist at the World Bank, and as a successful governor of Israel’s central bank. On this basis I strongly believe that he ticks every box when it comes to IMF suitability – professional, cultural and personal.

Mr Fischer is a world-class economist, and among the very few that applies a sharp, and well-trained analytical mind to both policy and academic challenges. He is exceptional in another, and even more unusual way. He uses his brilliance to engage rather than intimidate. Indeed, he starts his interactions with other people on the assumption that they can enlighten him; and they feel at ease sharing their insights and interacting with him.

...

Indeed, Mr Fischer’s professional integrity is beyond doubt; and he commands great respect. Just witness his standing among Palestinians during his successful tenure as Israel’s central bank governor and despite a period of considerable tensions in Arab-Israeli relations.

Oh, by the way, the writer's name is Mohamed El-Erian.

So why might Fischer not get the job? Back to the first link.

But while he is eminently qualified for the IMF post, his candidacy would be a long shot, as the job traditionally goes to a European, which of course makes Lagarde the favourite.

The resignation of Strauss-Kahn however has sparked calls for someone from the emerging economies to be appointed, which would favour the bid of Carstens, Mexico's central bank chief.

Two other candidates, Kazakhstan's Grigory Marchenko and Trevor Manuel of South Africa, pulled out ahead of Friday's nomination deadline -- a move that underscored the widespread belief that Europe already had a done deal.

You don't expect the Europeans to give up what they see as an entitlement for the sake of the rest of the world, do you?

Labels: International Monetary Fund, Stanley Fischer

posted by Carl in Jerusalem @ 6:56 AM