Until then, Strauss-Kahn brought the IMF

Dominique Strauss-Kahn took office in November 2007, when the credibility and relevance of the fund are, perhaps, at the lowest level in its history. Despite the already flared up in the U.S. mortgage crisis, the global economy was still booming. Companies and banks have enjoyed an abundance of cheap money, the budgets of most states regularly replenished, allowing developed countries without any fear of debt build up, and developing - to accumulate gold reserves and sovereign wealth funds. From financial problems once the most difficult "clients" of the IMF, such as Russia and Argentina, were left alone memories largest debtor at the end of 2007 was Turkey with outstanding loans of all-in 4.5 billion SDR (slightly more than $ 7 billion). The rest of the mailing list by looking not too impressive: in the poorest countries in Africa and the former Soviet Union, plus the only survivor of that war Iraq. In general, for objective reasons to the crisis of the "kingdom" of the IMF was not enough, turn around anywhere. It is no accident perhaps the first task that Dominique Strauss-Kahn set, leading the fund was to reduce staff by at least 300 jobs (or 15%). In addition, together with the "clientele" of the IMF lost a hefty portion of his authority in the expert community. Numerous critics have argued that the standard methods of therapy, which the fund over and over again prescribed the recipient, often doing more harm than good. Indeed, these economies were already weakened by the recession, but they were forced to tighten fiscal and monetary policies. Moreover, the victims of the Asian crisis of 1997-1998 made from his bitter experience of the practical conclusions. The sense of intense build-up of the financial "bags" in the middle of the zero-point, not least was the fact that when the next crisis breaks out, remain independent of the IMF with its harmful advice. In recent years, these reproaches was added one more, not less difficult. Like most experts, the IMF economists have failed to detect any signs nor the severity of the coming disaster, when it was already on the threshold. Independent Assessment Committee of the IMF, after the fact evaluating supervisory activities of the fund for 2004-2007, did not stint on the harsh wording. Predict a crisis fund to prevent "a high degree of pattern of thinking, intellectual limitations, and general belief that major financial crisis in the large developed economies is unlikely," and "ineffective internal management and organizational culture, not encouraging the opposite opinion." In disguise. Ironically, the crisis gave the IMF a chance to restore its former greatness, and the fund took advantage of this opportunity, quickly replacing the old clothes of the poor, despised by all relative to the mantle of financial superman, savior of the world economy. In the spring of 2009 at the G20 summit in London agreed to triple the amount of credit of IMF resources to $ 750 billion and the fund took a course to increase the flexibility, which is based in alleviating and simplifying the conditions for granting aid to needy countries, a doubling of credit limits and a significant expansion of the toolkit. Of course, no managing director or executive council headed by him can not make key decisions on their own: the last word always follows the governing council, in which all the countries - members of the IMF. But what happened updated guidelines of the fund is consistent both with the political past, Dominique Strauss-Kahn (he started his career in the Socialist Party), and with his apparent sympathy for Keynesian ideas. Since the beginning of the crisis level of debt of member countries to the IMF increased by 6 times. However, the list of beneficiaries is not quite coincide with the expectations of the G20 and management fund. It was assumed that rescue is necessary, as usual, the developing countries and transition economies. The IMF has an opportunity to provide credit lines to "fundamentally strong" countries pursuing in terms of the fund, it is sound economic policy, but faced with a temporary risk. The mechanism was in demand as a kind of insurance against accident: at the peak of the crisis for her interested, Mexico, Colombia and Poland, which agreed quite a decent amount, but still have not taken a penny stock. Who needed not virtual, but it is real money, it's the three EU countries: Greece, Ireland and Portugal. Moreover, all three problems were so severe that the IMF has to deal with them not in isolation, but together with the authorities of the EU. Dramatic situation makes the fact that at stake is not only the fate of themselves «VIP-clients", but the future of the euro area, and here we are talking about systemic risks to the global economy. The year after the adoption of a plan of financial aid to Athens, did not give confidence in the favorable resolution of debt problems PIGS: Dominique Strauss-Kahn was arrested on the eve of a meeting of finance ministers of the EU, which was supposed to discuss additional measures emergency all the same in Greece. A holy place. Being a man of ambitious, energetic and enterprising, Dominique Strauss-Kahn was clearly not satisfied with the role of the IMF on the world stage, even now, when she repeatedly increased. The fact that the new resources that fund has at its disposal two years ago - this is money borrowed from several countries (mostly developed, as well as BRIC). The preservation of these agreements in force shall be certified every five years, therefore, the fund may not rely on them constantly, but because, as noted with regret, Dominique Strauss-Kahn back in 2009, the IMF can not serve as a reliable global lender of last resort. Fulfillment of this mission also prevents distrust of large developing countries. They want their weight in the IMF was proportional to the increased role in the global economy and financial strength. BRIC, of ​​course, welcomed the quota reform approved last year and to increase the share of votes to 13.5%, but clearly calculated and, objectively, are entitled to more. Following the resignation of Dominique Strauss-Kahn's chapter of the People's Bank of China governor Zhou Xiaochuan said that "the composition of senior management (fund) should better reflect changes in the global economy and to emerging markets." Of course, such ideas do not cause much excitement among the developed countries.