By Kenton X. Chance
WASHINGTON (CMC) —The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, Monday said the proposed appointment of Jamaica’s Finance Minister, Nigel Clarke, to a senior position in the Washington-based financial institution represents “a tremendous addition to our skills and capabilities, strongly supported by staff at the IMF”.
Georgieva had earlier announced that Clarke is expected to take up the position of deputy managing director, effective Oct. 31, and will succeed Antoinette Sayeh, who steps down on Sept. 12.
Georgieva, speaking during a virtual roundtable with Caribbean journalists, said that the appointment is “a testament to Nigel Clarke’s skills, experience and dedication to public service, and it is also a very important reflection of the voice, the credibility of the Caribbean region.
“You have been on the front line on one of the most dramatic challenges we face, the climate challenge, and you have a lot to teach the rest of the world on how to handle it. So thank you, Caribbean region, for gifting us Nigel Clarke to help us lead the fund in the next years,” she said.
Georgieva said that Clarke will become “a member of the most senior leadership team” of the IMF, which consists of four deputy managing directors and herself and that “his role is to help me lead the Fund and provide service to 190 members.
“And in that sense, he will have responsibilities towards the programmes and engagements we have with our member states,” she said, adding, “he would speak on behalf of the Fund and represent me in international fora.
“He will have the important responsibility to bring, through his experience, the voice of small island states to us at the Fund. And I want to add that I’m particularly excited of him joining us as I start my second term, and I know that in my second term, attention to vulnerable island countries will be even more elevated”.
The IMF managing director said that in that sense, she would be counting on his experience, his wisdom.
Georgieva was full of praise for the Jamaican national, telling the Caribbean Media Corporation (CMC) that there were “many reasons” Clarke was decided upon as being the ideal person for the position.
“One, he brings hands-on experience as Minister of Finance in transforming an economy from a weaker to a much stronger position in which institutions and policies provide for a good performance and translate into jobs for the people of Jamaica and better opportunities for people in Jamaica.
“He has worked with the Fund. We have seen him in action. We have seen his decisiveness. We have seen, his dedication and that, leading from experience for other countries that face similar problems as Jamaica faces, is extremely valuable.
“Second, as I said in my previous answer, he represents a group of countries that are particularly challenged in a world of changing climate. He can effectively transmit the experience, the aspirations, of these countries, but also speak to them,” Georgieva said adding Clarke would be able to “speak to our members in the Pacific (and) speak to countries vulnerable climate, vulnerable countries in Africa, in a way that is strengthened by where he comes from”.
She said the third factor in Clarke’s favour is the combination of his private sector experience and his experience as a finance minister, his knowledge of finance, his ability to lead innovation in a world that is changing so fast.
“Jamaica is the first country where a sovereign issuance has been done to reflect on catastrophic risks. Jamaica, just in last year, brought a bond that is on based on domestic currency. These are things that other countries aspire for they need to do, and I know that he will be a great addition to our team with the experience he brings,” she added.
Georgieva said it also did not harm Clarke’s position for the post given that “he has a fantastic education.
“When I presented him to our board, there was a lot of positive reflection on the strength of his background, in education and in experience. He also did something that is very valuable for us.
“He chaired the Governor’s of the Inter American Development Bank. That gives inside knowledge that not so many people would have of the workings of institutions like the IMF,” she said.
Georgieva said that the IMF always draw a “very wide net when we look for these senior positions, and our team goes thoroughly through what are the challenges ahead of us, and who are the candidates that are best suited by their experience, their knowledge, to help us meet these challenges.
“And I can tell you, it didn’t take a long time for him to get on top of our our list. I should add ..that I have interacted with Nigel Clarke. He’s very clear. He’s very combative when he has to be, when he has to defend his point, but he also is reaching out to consensus.
“He wants things done, and I like that a lot about him, because I fall in the same category. Our membership deserves from us to get things done.”
The IMF official sought to down play suggestions that in the past the concerns of the Caribbean region were not properly addressed by the Fund when she had earlier told reporters that Clarke’s appointment will actually improve relations with the region.
Caribbean leaders have in the past expressed concern about access to grants and other favourable means of finances as well as alternatives to debt when faced with natural disasters.
“Let me first recognise the Caribbean region for taking a very principled position and very active position on representing the aspirations and the needs of people in the region,” Georgieva said, adding that Barbados Prime Minister Mia Mottley comes to mind as somebody else who has been strong spokesperson for the region in this area.
“At the IMF, we were the first to recognize that vulnerability to climate shocks needs to be placed among the criteria for concessional financing. As you know, traditionally, it is income per capita that determines whether a country should have access to grants and concessional loans.
“At the IMF, with the creation of the resilience and sustainability trust, we became the first institution to provide concessional finance, concessional loans, Indeed, to countries, middle-income countries that are vulnerable to climate shocks.”
She said regarding the call for more grants, “at the IMF, we have one way in which we can help countries that are severely affected by exogenous shocks, and it is called catastrophic containment and relief trust. It is for low-income countries.
“We used it actively during the pandemic, when we provided almost a billion US dollars in de facto grants. We granted money to countries so when they’re faced with such a horrific challenge, they don’t need to pay us back. So for two years, low-income countries that had obligations to the fund benefited from this grant.”
She said that the very first country to actually to be among the reasons the IMF created this fund was Haiti.
“Now, when it comes down to middle income countries, we do not have grant-making capabilities. However, we have something very unique. No other institution can do it. We can create reserves and liquidity through special drawing rights.
“And as you know, after the pandemic, we provided the largest in the history of the IMF, US$650 billion allocation of Special Drawing Rights (SDR) does not add to debt. It adds to reserves.
“It adds to liquidity. … This is an instrument that is out there, although at this point we do not see a need for using special drawing rights, because there is no shortage of reserves and liquidity at the moment. “
She said that with regards to concessionality for the future, the IMF is advocating for its members “to help us expand our concessional lending capabilities to provide more long-term, low-cost financing to countries, both low-income and middle-income countries that need it.
“And I can say that the voice of the Caribbean has been very important and very effective for the fund to lean forward in the way we help members that are particularly severely exposed to exogenous shocks,” Georgieva told Caribbean journalists.
BMC988
I wonder if Camillo Gonsalves had been considered? Could he have been considered? Where in the line would he be, last place? Would he be qualified? Is he smart enough to be considered? Does he have any qualification? All this and more, coming right up.