A Lady in the Bank
Bulgarian Kristalina Georgieva will serve as Managing Director of the International Monetary Fund (IMF) for the next five years. For the first time in the history of the UN’s most important financial institution the operational management of its staff, comprising 2,500 workers from 143 countries, has been entrusted to a representative of a nation with moderate economic indicators.
While the head of the IMF enjoys significant powers, the organization’s day-to-day business is conducted by the IMF’s Executive Board, which consists of 24 executive directors. They are appointed by the main holders of IMF quotas: the USA, Japan, the UK, Germany, China, France, Russia and Saudi Arabia. Currently, 189 member countries contribute to the work of the IMF. In the event of a deficit in its own balance of payments, each of these countries has the right to rely on the Fund’s loans. The main goals of the organization include developing productive resources, balanced growth of international trade and maintaining global financial stability. This implies creating conditions that would stimulate employment and help raise income levels. In reality, IMF loans are almost always accompanied by a package of recommendations and conditions restricting the borrower’s social spending. This approach is rightfully criticized in developing countries, where it causes protests and social instability.
Ms. Georgieva is an experienced, international level financier. She worked in leadership positions in the World Bank, an organization created to meet global challenges. Her predecessor, Christine Lagarde, has been elected Chairman of the European Central Bank.