France’s Christine Lagarde was named the new head of the International Monetary Fund at a critical time for that organization and for the global economy. Historically the IMF’s managing director has been European and the president of the World Bank has been from the United States – currently Robert Zoelick former US Deputy Secretary of State. Below is a clip from PBS Newshour where Judy Woodruff discusses what kind of challenges she faces with Cornell University’s Esward Prasad and George Washington University’s Scheherazade Rehman. There is also good coverage of what the IMF does which is useful for those A2 students.
One, it lends money to countries in trouble. But, more importantly in the new world economy, what it does is, it tells countries what they should be doing with their policies. It evaluates their financial systems. It evaluates their policies, talks about whether those policies are good for the country, but, more importantly, also for the global economy, what is, somewhat strangely, called surveillance.