For Immediate Release: March 12, 2023
EU countries’ backing of Kristalina Georgieva for a second term as IMF Managing Director will likely set in motion the next steps towards her reappointment. This represents another lost opportunity to reform the governance of the Fund. Civil society organisations, including the Bretton Woods Project, Eurodad, Recourse, Christian Aid, and Power Shift Africa rejected this move, which proves yet again that the “gentleman’s agreement”, a non-written agreement that has ensured for 80 years that the IMF managing director has been a European and the World Bank president a US national, is alive and well.
Global civil society and countries from the Global South have long called for an end to this illegitimate, neocolonial agreement and a more democratic appointment process. This should ensure the selection of the next managing director is undertaken in accordance with a merit-based, open and transparent process, underpinned by criteria involving a demonstrated commitment to international human rights, feminist principles, green and equitable development, as well as publicly available shareholder votes.
“It is not surprising to see European Finance Ministers support Georgieva’s re-appointment. As it’s been the case with European countries’ position on financial system reform, the gap is huge between Georgieva’s calls for ending ‘business-as-usual’ at COP and the support under its leadership for austerity and fossil fuel extraction in countries like Pakistan or Argentina,” said Federico Sibaja, IMF Campaign Manager at Recourse. “It is uncertain what her plan to transform the institution, if any, will be for her next tenure.”
“The reappointment of Kristalina Georgieva is a sign that the undemocratic and outdated gentlemen’s agreement that has governed the Bretton Woods Institutions for the last 80 years is alive and well. Calls for a new governance arrangement reflective of democratic values have grown stronger with every Managing Director selection process in recent years. A competitive and transparent process to select IMF leadership is needed, as part of a larger effort to strengthen the legitimacy of the Bretton Woods Institutions” said Maria José Romero, Eurodad Policy and Advocacy Manager.
“International institutions currently face a crisis of legitimacy as faith in the multilateral system of global governance withers,” said Mihaela Siritanu, Economic Governance Lead at Bretton Woods Project. “If the IMF and World Bank want to present themselves as modern institutions capable of tackling today’s challenges, it is imperative that they become democratic and accountable to all of those they represent. Accountability starts from the top, with changing the way the World Bank president and the IMF managing director have been selected.”
“Georgieva’s re-appointment must not be yet another acceptance of the status quo. To do that would be to ignore the voices across developing countries and civil society who are demanding reform and a redistribution of decision-making,” said Mariana Paoli, Global Advocacy Lead at Christian Aid. “This is a test of leadership for developed countries like the UK and Europe. Steps must be taken to end the rigged system in the IMF and bring about fair representation and participation from the Global South. Global processes such as the G20, the Summit for the Future and the Financing for Development 4 are also opportunities to advance this agenda.”
‘‘For five years at the helm, Georgieva has failed to address the opaqueness under which the IMF operates. Her leadership has failed to inspire confidence in this critical institution. For decades, IMF’s voting power has been concentrated in the hands of the Americans and their cabal of First World cronies. It is unfortunate that in a fast-changing world, this institution is still steeped in elitism and promotion of unjust systems that perpetuate economic inequalities and neocolonialism,’’ said Dean Bhebhe Bhekumuzi, the Campaigns Lead at Power Shift Africa. ‘‘If the MD wants to be remembered for anything at all, she must institute drastic reforms that recognise Africa and the Global South’s right to develop. Any reforms that do not upset the apple cart are not good enough. Georgieva could be remembered for protecting a handful of powerful elites at the expense of millions in poor countries or for reforming the IMF into an inclusive modern institution. The choice is hers.’’
For more information and declaration please contact press offices:
- In the UK: Isabel Alvarez, Communications Manager, Bretton Woods Project <ialvarez@brettonwoodsproject.org> or David Green, Communications Manager, Christian Aid <dagreen@christian-aid.org> / + 44 (0) 7961777129
- In the Netherlands: Federico Sibaja, IMF Campaign Manager <federico@re-course.org>
- In Africa: James Kahongeh, Communications Officer, Power Shift Africa <jkahongeh@powershiftafrica.org> / +254 (0) 704 671 573
Further resources:
- Bretton Woods Project Inside the Institutions “What is the ‘gentleman’s agreement’?”
- Letter from more than 100 civil society organisations demands the end of the ‘gentlemen’s agreement’ and calls for merit-based, open and transparent World Bank presidential selection process
- Bretton Woods Observer article “A new Bretton Woods for whom? Civil society calls for democratisation of global governance”
- UN secretariat policy brief “Reforms to the International Financial Architecture”
IMF Boss 