Bulgarian economist Kristalina Georgieva, 70, has been selected by the Executive Board of the International Monetary Fund (IMF) to serve a second five-year term as IMF Managing Director, through a decision reached by consensus following discussions. The new term is beginning October 1, 2024. Her current term ends on September 30, 2024.
Ms. Georgieva, leading the IMF since 2019, stated last month that she was making herself “available to serve, if people want me to serve.”
Now in a statement, Ms. Georgieva said in a statement, “I am deeply grateful for the trust and support of the Fund’s Executive Board, representing our 190 members, and honored to continue to lead the IMF as Managing Director.”
Kristalina Georgieva was born in Sofia, Bulgaria, in 1953. She is the first IMF head from a former communist country.
Education-
Georgieva was an Associate Professor at the University of National and World Economy in Bulgaria from 1977 to 1993. She holds a Ph.D. in Economic Science and an M.A. in Political Economy and Sociology. She held visiting fellowships at the Massachusetts Institute of Technology and the London School of Economics during her academic career.
Work Profile at International level
Ms. Georgieva has been the IMF's Managing Director since 2019, she succeeded Christine Lagarde. Before joining the IMF, Ms. Georgieva was CEO of the World Bank from January 2017 to September 2019. From February 1, 2019, to April 8, 2019, she was the Interim President for the World Bank Group. Georgieva for six years at the European Commission, where she served as budget commissioner. She had previously spent 17 years at the World Bank, rising to the rank of vice president.
Ms. Georgieva serves on many international panels including as co-Chair of the Global Commission on Adaptation, and as co-chair of the United Nations Secretary-General's High-Level Panel on Humanitarian Financing. She has authored and co-authored over 100 publications on environmental and economic policy, including textbooks on macro- and microeconomics.
In 2010, Georgieva was honored as "European of the Year" and "Commissioner of the Year" by European Voice for her leadership in the EU's handling of humanitarian crises. In October 2020, she was awarded the Atlantic Council's Distinguished International Leadership Award, recognizing her outstanding contributions throughout her career in public service
The IMF is a global institution established in 1945 under the Bretton Woods agreement, dedicated to fostering sustainable growth and prosperity across its 190 member countries. It promotes financial stability and monetary cooperation, aiming to enhance productivity, job creation, and economic well-being.
Its mission is to encourage global monetary cooperation, ensure financial stability, facilitate international trade, promote employment, sustainable economic growth, and reduce poverty worldwide.
Unlike development banks, the IMF doesn't fund specific projects but provides support to implement policies that restore economic stability and growth. It offers financial assistance to countries facing economic challenges, such as Pakistan and Sri Lanka, to prevent or alleviate financial crises.
Kristalina Georgieva has effectively led the IMF through the tough times from pandemic's difficulties, approving more than $360 billion in fresh funding, debt relief for the world's poorest countries, to a sizeable distribution of $650 billion in special drawing rights.
Throughout her time at the IMF, she has made addressing climate change, fighting inequality, and advancing women's economic integration her top priorities. Tensions between the US and China were plaguing the world economy when she took over as leader.
In 2023 the IMF authorised a $15.6 billion aid package for Ukraine, the first time such support had been given to a nation engaged in hostilities.
Economist Joseph Stiglitz, among others, commended her initiative in addressing the economic effects of the pandemic and establishing the IMF as a frontrunner in the fight against climate change.
What was the China Scandal?
In 2021, Ms. Georgieva was the target of accusations originating from her tenure at the World Bank. An internal investigation claimed that she had coordinated attempts to manipulate China's ranking in the organisation's important annual Doing Business report, thereby putting her position at risk.
How was this Scandal was fueled? Amid speculations that China was scheduled to drop to 85 in 2018, Chinese government representatives dined with Georgieva and met with World Bank staff as well as Kim. WilmerHale claims that Georgieva and Kim's group interfered and tampered with the data to preserve China's position at 78, preserving their fundraising efforts.
However, She claimed that these all were mere accusations with no truth behind them. Georgieva said at the time that she fundamentally disagreed with the conclusions of the World Bank report.
In addition, following an examination by the IMF executive board, Ms. Georgieva's position was preserved and her credibility was restored. The statement from the IMF executive board expressed "full confidence" in her "leadership and ability to continue to effectively carry out her duties."
Kristalina Georgieva, Bulgaria (Europe) was the sole candidate for the position of IMF Chief. Former Irish (Europe) Finance Minister Paschal Donohoe was thought to be a contender earlier this year, but he ultimately declined to run.
There is a long-standing tradition as a part of a controversial decades-old accord between Europe and the United States. What is that? The nomination process for the IMF managing director position is continuously filled by a person from the European continent, however there have been challenges, a power shift from Europe to Asia, as Chinese candidates emerged as potential candidates, but it did not happen as the process is heavily influenced by Europe. From 1946 when IMF got its first Managing Director, Camille Gutt, he was brom Belgium to Georgieva, all 12 Chiefs have been European nationals.
In contrast, US citizens or citizens of the World Bank frequently serve as its presidents. Present World Bank Chief is Ajay Banga, Indian American but US naturalised citizen.
The European Union's finance ministers essentially guaranteed Georgieva's approval last month when they endorsed her for a second term as head of the lender of last resort.
Previously, European countries, particularly France, had advocated strongly for Georgieva's appointment despite her scandal, to maintain European leadership at the IMF. The IMF executive board even waived the age limit to still appoint Georgieva, who was 66 at the time.
(Inputs from Agencies)
©️ Copyright 2024. All Rights Reserved Powered by Vygr Media.
