Departing IMF economist rips fund's leadership
Source: BI-ME with AFP , Author: Posted by Bi-ME staff
Posted: Sat July 21, 2012 2:08 pm

INTERNATIONAL. A departing senior IMF economist has excoriated the fund, alleging it failed to address Europe's crisis and "suppressed" its challenges, according to a letter published Friday.

In the letter obtained by CNN, Peter Doyle also accused Christine Lagarde, the managing director of the International Monetary Fund, of being "tainted" by a faulty selection process.

Doyle, in a resignation letter dated June 18 to the IMF executive board, expressed regret to have worked at the Washington-based global lender.

"After twenty years of service, I am ashamed to have had any association with the Fund at all," he wrote to Shakour Shaalan, dean of the board.

Doyle said it was not just a matter of the fund's incompetence amid the global crisis and in surveillance ahead of the eurozone crisis, but because the institution deliberately had shirked its responsibilities.

"The substantive difficulties in these crises, as with others, were identified well in advance but were suppressed here," he wrote.

"Timely sustained warnings were of the essence. So the failure of Fund to issue them is a failing of the first order," he said.

That inaction has caused suffering for many, including Greece, and "the second global reserve currency (euro) is on the brink."

The IMF has been "playing catch-up" in reactive responses in last-ditch efforts to save it, the economist charged.

Contacted by AFP for comment on the letter, IMF spokesman Bill Murray said: "We have no evidence his views were suppressed, nor any views were suppressed."

Doyle accused the IMF of "European bias" which he said was becoming more deeply entrenched, despite reform commitments.

"This fact is most clear in regard to appointments for managing director which, over the past decade, have all-too-evidently been disastrous."

Under a tacit agreement between the United States and Europe, a European heads the IMF and an American holds the presidency of the World Bank, its sister institution.

Without personally criticizing Lagarde, a former French finance minister and the first woman to helm the fund, Doyle said: "Even the current incumbent is tainted, as neither her gender, integrity, or elan can make up for the fundamental illegitimacy of the selection process."

According to a person close to the situation, Doyle has been a division chief responsible for non-eurozone countries Israel, Sweden and Denmark and has had no crisis country responsibilities in the European Department.

He is currently listed as an adviser in the European Department, the person said.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: March 27, 2017
UAE. PwC issues new report jointly with the Global Manufacturing & Industrialisation Summit; The report outlines a roadmap for CIOs to manage the transformation of industrial companies to successfully adopt IIoT; Devising a digital strategy is key for manufacturers
date:Posted: March 27, 2017
UAE. The strongest growth rate for 2014-2015 in the region was led by Saudi Arabia and the UAE, according to a new report from The Boston Consulting Group.
date:Posted: March 27, 2017
UAE. As banks seek to be more competitive and enhance customer experiences, many look to transform their old legacy banking systems with more efficient new core solutions.
UAE. A recent study by The Boston Consulting Group found that, in 2016, GCC banks' revenues grew by 5.2%, down about 2 percentage points from 2015; The impact of the decline in oil prices has hit the banking industry; Profits declined by 3.2% for the first time since 2008.
dhgate