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Mohamed El-Erian Blasts The "Feudal" Traditions Of The IMF, Officially Denies He Is In The Running To Become The New DSK

Tyler Durden's picture




 

Mohamed El-Erian is back to doing what he has been doing best lately: writing opeds. Today, the man who some speculated could well be the replacement for DSK himself, has written a scathing posting blasting the IMF's sad state, focusing on the specifics of the "head" position as well as the qualifications required to attain it. His coup de grace: "This feudal
selection approach must be changed; and now is the time to do it.
Without a credible and quickly-recovering IMF, Europe will face even
more uncertain prospects, progress on structural reforms in advanced
economies will recede, and the world will find it more difficult to make
room for rapidly growing emerging economies." As for speculation that MEE (in keeping with acronymis) could be the next DSK: "I will not be
part of this process; I already have a great job, here in California."
His words of wisdom: "Hopefully, governments of the world can finally come together and open
the selection process to a pool of other candidates from around the
world. By so doing, they would cast aside a tradition that no longer
serves a purpose consistent with the spirit of multilateralism and its
required effectiveness."

From the FT: "Feudal IMF job process must change"

“Its
déjà vu all over again.” Thus began a 2005 column that I wrote for the
Financial Times lamenting that the Managing Director of the IMF was
still chosen on the basis of horse trading rather than through an open,
transparent and merit-based process.

Today the issue is back on the table as the incumbent, Dominique Strauss-Kahn, battles allegations of sexual assault. Judging from the dynamics already in play,
it will again be undermined by an outmoded and harmful process, that
places national prestige above the multilateralism that the IMF stands
for.

Under a tradition that dates back to 1944, the IMF’s MD has
been “reserved” for a European, allowing the institution to develop deep
roots by anchoring it to the political and economic powers of the time.
But over the years, the tradition has evolved from being a source of
stability to eroding the legitimacy and credibility of the institution.

The
problem has been compounded by the manner it has been implemented.
Nominations have been determined by political back door deals among a
small set of countries, often governed by issues of national prestige
rather than job qualifications.

Indeed, at times, the country of
origin of the next chief was specified before the suitable individual
was identified. And while the successful European nominee always gained
the formal support of the whole membership of the institution, this was
done using the full apparatus of foreign policy and bilateral political
pressures.

For years now, most people have acknowledged the need
for change. There have even been attempts to do so. Yet European
governments have effectively opposed the required shift; and the
Americans have not pressed the issue.

It should come as no
surprise that this features prominently in the IMF’s struggle to gain
legitimacy and effectiveness in today’s global economy. This failure to
adapt undermines the institution’s ability to become a “trusted advisor”
to countries around the world, while individual countries are worse
off, because they do not feel comfortable making full use of the Fund’s
expertise.

Even the language surrounding this topic constantly denotes an impression of entitlement rather than merit. We see this today as some claim that Europe must “retain” the IMF post while
others feel that it is “the turn” of another group of countries. In the
process, people rush to recommend specific names without the
pre-requisite of clarity on the qualification criteria. I have even seen
my name mentioned in the list of potential candidates should it be the
“turn” of emerging economies to get the post.

This feudal
selection approach must be changed; and now is the time to do it.
Without a credible and quickly-recovering IMF, Europe will face even
more uncertain prospects, progress on structural reforms in advanced
economies will recede, and the world will find it more difficult to make
room for rapidly growing emerging economies.

It is therefore
critical that, in the coming weeks, the IMF Executive Board finalise and
publicise a process that would be used, should Mr. Strauss-Kahn be
forced to resign. Specifically, the post of Managing Director should be
open to all nationalities, with candidates assessed on the basis of
transparent job qualifications.

It should also involve an
internationally balanced committee to evaluate applicants and put
forward 2-3 finalists for Executive Board consideration, and the final
choice should emerge from a fair vote of the Board.

I will not be
part of this process; I already have a great job, here in California.
Hopefully, governments of the world can finally come together and open
the selection process to a pool of other candidates from around the
world. By so doing, they would cast aside a tradition that no longer
serves a purpose consistent with the spirit of multilateralism and its
required effectiveness.

 

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Tue, 05/17/2011 - 13:11 | 1283539 Hedgetard55
Hedgetard55's picture

Wonder if Mohamed double E still has his DOW 10,000 hat in his drawer?

Tue, 05/17/2011 - 13:12 | 1283543 sabra1
sabra1's picture

i nominate big al greenspan. need someone with experience, no?

Tue, 05/17/2011 - 13:14 | 1283553 Mountainview
Mountainview's picture

I prefer Gordon Brown or Tony Blair, they are neither Dollar nor EURO...

Tue, 05/17/2011 - 14:11 | 1283796 Canucklehead
Canucklehead's picture

For some reason when I read your comment, the name Tony Soprano popped into my head.

Tue, 05/17/2011 - 20:57 | 1285455 Confuchius
Confuchius's picture

Tony Soprano. The perfect choice, as the prime purpose of the whole imf is the assassination of recalcitrant "leaders of client states".

Tue, 05/17/2011 - 13:17 | 1283555 silvertrain
silvertrain's picture

Takes him to long to say something these days..

Tue, 05/17/2011 - 13:28 | 1283601 InconvenientCou...
InconvenientCounterParty's picture

Madoff

Tue, 05/17/2011 - 13:15 | 1283544 dr_teeth
dr_teeth's picture
Officially Denies He Is Not In The Running -

there is a double negative, is he running or not?

Tue, 05/17/2011 - 13:20 | 1283564 Sqworl
Sqworl's picture

I nominate Dr. Ruth...she is an expert in the art of screwing!!!

Tue, 05/17/2011 - 13:31 | 1283568 Mercury
Mercury's picture

Actually it doesn't matter where they're from, what they look like or how "qualified" they are -  it's time to do away with the whole system that vests unelected, unaccountable technocrats with huge, vaguely defined and essentially unlimited powers.

Ask the Irish about "the spirit of multilateralism."

Tue, 05/17/2011 - 14:28 | 1283905 Ckashan
Ckashan's picture

Just take an airplane, fly over a major city, release the contents of the airplane's septic tank, and whom ever gets the most shit on them gets the job.

Tue, 05/17/2011 - 13:22 | 1283572 Cone of Uncertainty
Cone of Uncertainty's picture

Hank Paulson, he's got honor.

Tue, 05/17/2011 - 13:34 | 1283627 Fiat2Zero
Fiat2Zero's picture

Lol, Hank, is that you?

Tue, 05/17/2011 - 13:23 | 1283576 bugs_
bugs_'s picture

I nominate Typer Durden

Tue, 05/17/2011 - 13:23 | 1283591 francis_sawyer
francis_sawyer's picture

I nominate William Shatner

Tue, 05/17/2011 - 13:28 | 1283599 JW n FL
JW n FL's picture

I nominate Charlie Sheen! TIGER BLOOD BITCHEZ!!!!

Tue, 05/17/2011 - 13:35 | 1283602 JW n FL
JW n FL's picture

dup. squirls in da server again! http://www.google.com/#sclient=psy&hl=en&source=hp&q=squirrels+in+the+server

I nominate Zero Hedge Server Squirls! Double Winning! captcha that!

Tue, 05/17/2011 - 13:21 | 1283578 Dan The Man
Dan The Man's picture

None of them have a perceptible measure of integrity.  I hate them all.

Tue, 05/17/2011 - 15:11 | 1284156 NotApplicable
NotApplicable's picture

I think it has something to do with wearing ties.

I mean, what kind of logic goes into desiring to tie a rope around your own neck?

Whenever I see a man with a tie, I see a man that is lucky to still be breathing.

Tue, 05/17/2011 - 21:41 | 1285642 samsara
samsara's picture

Speaking of ties and suits,  I had a thought the other day.

Somewhere in the eighties we were "Allowed" not to wear them anymore.

I imagined a conversation between David Rockefeller and another mucky muck. 

"How do we make the little people accept their place?   I know how about making them dress like regular serfs?  I mean, Important People like US were suits and ties.  They actually believe they're important.  How do we do it? 

Well, Gradually.  I know lets start with Casual Friday's?   They're love it and think we care.  Then we just enlarge it to the whole week.  Within 5-10 years only IMPORTANT people like us will wear a suit and tie. 

The regular,replaceable office workers will look like other serfs.  They will LOOK interchangable.  They will FEEL interchangable.   It will help condition them that they really are just a number.  Then, no perminate desk, just come in and plug into a different outlet each day. 

They will start to Know their place.  We again will be set apart by our dress.  Something like Dr. Seuss's "Sneeches on Beeches' cartoon.  WE will have Stars on Ours...

Great.  Get on that make it happen.  Oh, try this black cavier, perfect temperature...

 

Tue, 05/17/2011 - 13:24 | 1283580 SDRII
SDRII's picture

Well Kohn just took a consulting post with the BOE in affirmation that $hit floats to the top. Paving the way for Israel's Fisher to assume the role - would be the coup de grace for Bernanke

Tue, 05/17/2011 - 13:22 | 1283584 Chippewa Partners
Chippewa Partners's picture

I already have a job, in broke California, part of  broke USA.........

Tue, 05/17/2011 - 14:01 | 1283740 MrFriskles
MrFriskles's picture

Don't hate on Cali bitch. We are the heartbeat of 'Merika.

Tue, 05/17/2011 - 14:25 | 1283881 Strom
Strom's picture

Fixed that for you.

 

"Don't hate on Cali bitch. We are the heartburn of 'Merika."

 

...and I was born and live in California...

Tue, 05/17/2011 - 15:02 | 1284106 NotApplicable
NotApplicable's picture

Shouldn't you be saying that in Spanish?

Tue, 05/17/2011 - 13:22 | 1283585 francis_sawyer
francis_sawyer's picture

Well... If DSK's replacement is an academic from Princeton with a PhD...

Then you'll know that GOD really hates us!

 

Tue, 05/17/2011 - 13:47 | 1283684 I am a Man I am...
I am a Man I am Forty's picture

don't leave out columbia and harvard

Tue, 05/17/2011 - 13:24 | 1283595 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I don't know how anyone listens to him.  When he speaks, he says very little of what his particular thoughts are.  He reminds me of Greenspan.

Tue, 05/17/2011 - 13:27 | 1283596 Apostle of Unknown
Apostle of Unknown's picture

how about donald trump?

Tue, 05/17/2011 - 13:30 | 1283611 apberusdisvet
apberusdisvet's picture

The IMF should be changed to the International Marxist Fund as it is one of the biggest proponents of the NWO, the ultimate totalitarian wet dream.  BTW:  there will be a deal for DSK; charges will be dropped.  A real prosecution would set a bad example if an elite could actually incarcerated in a grab the ankles environment.  If there is a trial, watch the sweat pour off the brows of Ben and Timmah in future press conferences.  Quivering lips will be just so, so passe as a fear indicator.

Tue, 05/17/2011 - 13:29 | 1283616 Dan The Man
Dan The Man's picture

Well ok...maybe Tyler

Tue, 05/17/2011 - 13:36 | 1283645 tradewithdave
tradewithdave's picture

Wall Street Hobos in tight britches is the new normal on the big screen.

http://tradewithdave.com/?p=6414

Dave Harrison

www.tradewithdave.com

Tue, 05/17/2011 - 13:42 | 1283660 TruthInSunshine
TruthInSunshine's picture

Who needs the IMF?

The world would be better off, far so, without any global monetary organizations such as the IMF, World Bank, et al., which all gravitate towards implementation of the creation of a global government, linked by and ultimately made interwoven by monetary policy and commerce.

Let sovereign nations remain so, and allow people to have true representation of their interests, based on their goals and aspirations and inalienable rights (acknowledged and not granted - they are inalienable, not bestowed by government), and struggle for their common purpose as individuals that form truly sovereign nations.

Off with the globalists' heads!

Tue, 05/17/2011 - 15:05 | 1284130 NotApplicable
NotApplicable's picture

Who needs the IMF? Well, it looks like El-Erian does.

Notice that his whole article was in defense of the institution.

Tue, 05/17/2011 - 13:42 | 1283667 AldoHux_IV
AldoHux_IV's picture

The institution is far from salvageable and no amount of a new and fair form of MD selection will allow for a better much less credible IMF.  The DSK fiasco is interesting because now it allows an emerging economy to press for their representation which all sarcasm aside will only further the continuation of a farcical institution that only seeks to impose unchecked power and economic policy not based on the best solution but rather a shifting of power elite.

The world does not need any more superpowers nor reserve currencies nor institutions dressed up to provide multi-lateralism, but only be a front for the global elite to maintain their dominance and greed.

Tue, 05/17/2011 - 13:45 | 1283668 What_Me_Worry
What_Me_Worry's picture

I would like the nomination to be American Idol style.  IMF Idol.   Then, at least people might actually pay attention to the sociopaths that are hell bent on destroying civilization.

DWTB would also work for me.

Anything has to be better than the current system.

Tue, 05/17/2011 - 15:42 | 1284321 Brevard Times
Brevard Times's picture

+1

Tue, 05/17/2011 - 13:47 | 1283681 disabledvet
disabledvet's picture

i nominate myself.  i am in the running.  i will not call the process feudal but "futile"--and do my best.  thank you....any questions?  yes?  you in back... no, i have transferred the gold reserves into my passbook savings account.  you on the right?  really?  she said she wanted to do what with me?  he, he, he, he, he, he, he.  next question?

Tue, 05/17/2011 - 13:58 | 1283736 Atomizer
Atomizer's picture

The name, Gordon Brown seems to be circulating the rumor mills

http://www.youtube.com/watch?v=6VaP1HB7Vew

Tue, 05/17/2011 - 14:08 | 1283757 wang
wang's picture

I want to like MEE, but my instinct says he is a master of disguise e.g. palpatinian apprentice, so going with that, it would be logical to assume that he is fronting not only for his own book but a political agenda - wait for one of the politicos to quote MEE and the picture will become more clear -- oh my goodness well look at this, while not quoting MEE by name, the theme seems to have come from the same hymnal

 

forget the talk of deficit in this clip, it's her comments about the IMF

http://www.bloomberg.com/video/69821580/

(jump to minute 7:00 once the ad finishes - unless you like watching Mme. Pelosi)

 

Tue, 05/17/2011 - 14:06 | 1283769 Urban Redneck
Urban Redneck's picture

While they are fixing the IMF the might as well also fix the World Bank, since it is the other half of the evil bargain on multilateral banking management.

Tue, 05/17/2011 - 14:09 | 1283778 cougar_w
cougar_w's picture

Look, everybody wants to be DSK. Seriously, everyone with a pey-nis anyway. I mean money to burn, great food, and jumping maids for freebiez? Who wouldn't want to get in on that.

Of course my wife would promptly kill me when she found out I was French and running the IMF with maid service boo-yah. So maybe not so much want as dreaming.

And no, nobody ever thinks they'll get caught. Jee-zuz get with the program here we're talking about the smartest guys in the room right?

Tue, 05/17/2011 - 14:14 | 1283807 TruthInSunshine
TruthInSunshine's picture

Oh, but the cruelest irony and trick by the Creator, that thy little head, from time to time, subverts the control of, and casts off the shackles imposed by, the big head.

Tue, 05/17/2011 - 14:28 | 1283888 buzzsaw99
buzzsaw99's picture

The imf serves the banksters only, as do the central banks, the world governments, basically all serve at the pleasure of the banksters. It doesn't matter who is head of the imf, they either serve their masters or meet with an "accident". die imf.

Tue, 05/17/2011 - 14:37 | 1283890 Natasha
Natasha's picture

 

Since it appears the sharks are circling for DSK's job, here's a cover letter that may help land them an interview. Heh.

Dear IMF,

I understand you may soon have an opening for Chief of your illustrious organization, the IMF. You will find that I am the perfect candidate to lead your organization.

I have had extensive experience swindling my Mother, relatives and closest friends out of their life savings, while at the same time, securing their hard assets for myself. I have a passion for other people's money and have no qualms about securing it for the IMF. 

I exceed at keeping judicial systems in their place. Attorneys General down to the lowly local police all condone my activities. I am an accomplished pathological liar, have an extreme sense of entitlement, have no sense of social responsibility and believe that morality is for the weak. I am exceptionally skilled at taking what I want, whenever I want it, from whomever I choose.

I am ready, willing and able to lead this fine organization to levels of global power and control that were previously unimagined. Together we will squeeze every nation on this Earth until they envy a Haitian lifestyle. No asset is too large or too small for acquisition.

I look forward to discussing this exciting opportunity with you in the near future.

Regards,

IMF Chief Candidate

Tue, 05/17/2011 - 14:41 | 1284008 Atomizer
Tue, 05/17/2011 - 14:54 | 1284055 Jack Sheet
Jack Sheet's picture

Self-satisfied pr*ck.

Tue, 05/17/2011 - 15:03 | 1284115 johny2
johny2's picture

I would like to see both DSK and EE given a job digging for silver for $5 a day.

Tue, 05/17/2011 - 15:09 | 1284162 francis_sawyer
francis_sawyer's picture

Silly you...

There's no such thing as 'DIGGING FOR SILVER'...

Silver is just this mirage PAPER product placed on markets to exchange derivatives on...

Tue, 05/17/2011 - 15:29 | 1284212 johny2
johny2's picture

That they would not find none would just make their job more fitting...and preferably they would be digging far bellow the surface of the earth.

Tue, 05/17/2011 - 15:06 | 1284133 rcintc
rcintc's picture

How about Tiny Tim Geitner? 

Tue, 05/17/2011 - 15:55 | 1284365 Redneck Makin-tosh
Redneck Makin-tosh's picture

Kirkaldy's Gordon Brown to come clean about his favourite international goal and bring dignity to the post. He's not so keen on bigots, hypocrites and gold, so expect further resignations.

Tue, 05/17/2011 - 16:05 | 1284414 ThisIsBob
ThisIsBob's picture

Bob, what does the IMF do?

 

The IMF takes the taxpayer money of member nations and "lends" it to loosers so they can pay on their obligations to the bankers who hold their debt.

 

Next question?

 

Tue, 05/17/2011 - 18:57 | 1285088 mkkby
mkkby's picture

"Hopefully, governments of the world can finally come together and open the selection process to a pool of other candidates from around the world..."

What's he talking about.  Former Goldman execs from any country are eligible.

Tue, 05/17/2011 - 21:18 | 1285553 samsara
samsara's picture

Isn't the current 2nd in command a JPM guy?

 

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