Author: Paul Yih
Date: 07-21-12 13:22
Peter Doyle, Departing IMF Director, 'Ashamed To Have Had Any Association' With Organization
The Huffington Post | By Alexander Eichler Posted: 07/20/2012 5:24 pm Updated: 07/20/2012 5:47 pm
Global Financial Crisis, Europe, Financial Crisis, IMF, Video, Christine Lagarde, Europe In Crisis, IMF Managing Director, International Monetary Fund, Peter Doyle, eurozone crisis, eurozone crisis, Divorce News
IMF Managing Director Christine Lagarde is seen in Washington D.C. Departing IMF adviser Peter Doyle has written that in spite of Lagarde's positive qualities, she is "tainted" by a selection process that favors Europeans.
When International Monetary Fund economist Peter Doyle finally departed the organization last month, he didn't mince words in his letter to the bosses.
"After twenty years of service, I am ashamed to have had any association with the Fund at all," Doyle wrote in a June 18 letter to Shakour Shaalan, dean of the executive board of the IMF, obtained by CNN on Friday.
Doyle -- who currently serves as an adviser within the IMF, according to The Wall Street Journal, and was once a division chief in the IMF's European Department -- accused the organization of favoring the interests of Europe over those of the rest of the world, and of being asleep at the switch while some of the worst financial emergencies in recent memory were bearing down.
In the past few years, Doyle wrote, the IMF received warnings "well in advance" about the crises in the Eurozone and the global financial system, but that such warnings were "suppressed" and that the lack of IMF response constituted "a failing of the first order."
Doyle is not the first to claim that the IMF missed the signs of an impending financial catastrophe before the 2008 meltdown. An internal report at the Fund reached much the same conclusion last year, pointing out that in August 2007 the IMF higher-ups pronounced the global economic outlook "very favorable."
In his letter to Shaalan, Doyle also had harsh words for the office of the Managing Director, apparently on the grounds that the position always seems to go to a European, which critics of the IMF say leads to a pro-Europe bias in the organization's policies.
Doyle said that the managing directors of the past decade have been "disastrous," possibly a reference to former managing director Dominique Strauss-Kahn, who resigned last year following charges that he sexually assaulted a hotel maid. The charges against Strauss-Kahn were ultimately dropped.
Doyle did praise the "integrity" and "elan" of current managing director Christine Lagarde, but argued that she was nevertheless "tainted" by the "fundamental illegitimacy of the selection process."
According to the WSJ, Doyle is expected to leave the organization in the fall.