Why should Carstens lead the IMF?

I’d like to tell you briefly why I think Agustin Carstens, a Mexican economist, should lead the IMF.

First, his carrer speak for itself. As a former Secretary of the Treasury and current Mexico´s Central Bank Governor, he has been a key actor in stabilizing and recovering the Mexican economy after 2009 financial turmoil. He has managed to keep interest rates and inflation low, exchange rate stable, international reserves reached a record high, unemployment has been reduced and the country’s economy is expected to grow by 5% this year.

Second, a non-european head would be best. It appears more logical to me that the next boss come from outside Europe to avoid conflict of interest. Moreover, the balance of power has changed and emerging markets are increasingly becoming lenders instead of borrowers. Countries like China, India, Russia and Brazil are contributing to shape a new financial order and international organizations such as the IMF should reflect this reality. A post World War thinking won´t work in the 21st century.  To learn more visit http://www.economist.com/economics/by-invitation/questions/who_should_lead_imf

Third, having worked for years in a relevant position in the IMF, makes him a strong candidate. The Fund´s agenda is already too busy and the next Managing Director should be able to work efficiently from day one without training. On the other hand, although it seems like he doesn´t really have support from the latin american peers, he does have the backing of Mexico´s President Felipe Calderón, whose international image may be an asset. Moreover, Carstens keeps a good relationship with US Secretary of the Treasury Timothy Geithner and could well be White House´s favourite candidate. See http://blogs.ft.com/beyond-brics/2011/05/24/imf-carstens-who/

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