The French finance minister, widely respected for her leadership during Europe’s financial crisis over the past three years, was chosen to replace Dominique Strauss-Kahn, who resigned abruptly on May 18 after being arrested in New York for the alleged sexual assault of a hotel maid.
A statement from the IMF stated: “The executive board of the International Monetary Fund today (yesterday) selected Christine Lagarde to serve as IMF managing director and madame chairman of the executive board for a five-year term starting on July 5, 2011.”
Lagarde, it said, “is the first woman named to the top IMF post since the institution’s inception in 1944”.
Earlier yesterday, the U.S. declared its support for Lagarde to head the IMF, all but assuring that she would be chosen.
“I am pleased to announce our decision to support Christine Lagarde to head the International Monetary Fund,” Treasury Secretary Timothy Geithner said in a statement.
“Minister Lagarde’s exceptional talent and broad experience will provide invaluable leadership for this indispensable institution at a critical time for the global economy.”
The declaration comes just a month after U.S. Secretary of State Hillary Clinton said that America welcomed “women who are well qualified” to run big institutions like the International Monetary Fund”.
Lagarde’s was picked over Mexican Central Bank chief, Agustin Carstens, to become the executive director of the global crisis lender, capping a five-week race after the May 18 resignation of Strauss-Kahn.
The backing of Washington and Europe gave Lagarde the support of 49 per cent of the voting quotas on the 24-member IMF executive board. UK Chancellor George Osborne described Lagarde as the “outstanding candidate” to take over the helm of the world financial body.
Added endorsements of Russia, China and other countries ensured she would be over the 50 per centmark, although the board said it wants to decide by consensus rather than a vote.
Despite grumblings from emerging economies over Europe’s 65-year lock on the executive director job, there was little doubt that the key IMF power, the U.S., would support Lagarde, making it nearly impossible for Carstens to win the position.
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