WASHINGTON, CMC—The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, said Monday that the proposed appointment of Jamaica’s Finance Minister, Dr. Nigel Clarke, to a senior position at 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 October 31, and will succeed Antoinette Sayeh, who steps down on September 12.
Speaking during a virtual roundtable with Caribbean journalists, Georgieva said that the appointment is “a testament to Nigel Clarke’s skills, experience, and dedication to public service, and it is also a critical reflection of the voice and credibility of the Caribbean region.
“You have been on the front line of one of the most dramatic challenges we face, the climate challenge, and you have a lot to teach the rest of the world 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. Watch video
Georgieva said that Clarke would 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 programs 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 about him joining us as I start my second term. 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 and wisdom.
Georgieva praised the Jamaican national, telling the Caribbean Media Corporation (CMC) that there were “many reasons” Clarke was chosen as 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 problems similar to those faced by Jamaica, is extremely valuable.
“Second, as I said in my previous answer, he represents a group of countries particularly challenged in a 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 favor is his private sector experience and experience as a Finance Minister, his knowledge of finance, and 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. Just last year, Jamaica brought a bond based on the 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 experience. He also did something precious for us.
“He chaired the Governors 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 Washington-based financial institution always draws a “vast net” when we look for these senior positions. Our team thoroughly reviews the challenges ahead of us and identifies the candidates best suited to help us meet these challenges based on their experience and knowledge.
“And I can tell you, he didn’t take long to get on top of our list. I have interacted with Nigel Clarke. He’s unequivocal. He’s very combative 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 downplay suggestions that the Fund had not properly addressed the Caribbean region’s concerns in the past when she had earlier told reporters that Clarke’s appointment would actually improve relations with the region.
Caribbean leaders have previously expressed concern about access to grants and other favorable financial means and alternatives to debt when faced with natural disasters.
“Let me first recognize 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 a 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, income per capita 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.”
Regarding the call for more grants, she said, “At the IMF, we have one way to help countries 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 defacto grants. We granted money to countries so they don’t need to pay us back when faced with such a horrific challenge. So for two years, low-income countries that had obligations to the Fund benefited from this grant.”
She said that Haiti was the very first country to actually be among the reasons the IMF created this Fund.
“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 the debt. It adds to reserves.
“It adds to liquidity. … This is an instrument 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. “
She said that regarding 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 critical 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.
Download video – International Monetary Fund (IMF) Managing Director, Kristalina Georgieva
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