Her determination as negotiator and experience in the euro area crisis will provide perhaps the new IMF chief, Christine Lagarde, the first woman to occupy this position, with the means of a smooth management transition of the institution, faced with some of the most serious challenges in its history.
Charisma and expertise in international relations during the French Minister of Finance mandate will weigh heavily in the relationship with governments around the world after she took over the job from former managing director Dominique Strauss-Kahn.
Proponents say that Lagarde, aged 55, will have enough political power to force over-indebted euro zone states to implement budgetary reforms as promised.
However, because of the lack of academic economic career, and the fact that Lagarde is likely to continue the same policies conservative that failed to resolve the crisis in the euro area, worries some analysts.
Lagarde has a reputation to deliver results under pressure – during talks in February between the G20 has brought China to a compromise on how to address economic imbalances. The new head of the IMF has proven her negotiation capabilities ten years ago, becoming the first woman president of the American law firm Baker & McKenzie.
Some of the key challenges of the new IMF chief will be to get the leaders of important states reach an agreement to reduce trade deficits and other global economic imbalances. Lagarde said that she will increase the IMF’s capacity to respond to the problems of poor countries and will intensify supervision of the economies to prevent new crises.
Lagarde joined the Paris office of Baker & McKenzie law firm 25 years after getting a degree in labor law and English.
Born in Paris, under the name of Christine Lallouette, the new head of IMF promotes the increase of women numbers in executive positions.
Lagarde was named Tuesday IMF Managing Director by the Board of the financial institution for a term of five years starting July 5. The position was previously held by Dominique Strauss-Kahn who is on trial in New York for sexual assault of a hotel chambermaid.