Strauss-Kahn resigns – but who will replace him?

The <em>New Statesman</em> runs through a list of the IMF chief’s potential successors.

Dominique Strauss-Kahn has succumbed to the inevitable and resigned. Here is his letter to the IMF:

It is with infinite sadness that I feel compelled today to present to the Executive Board my resignation from my post of Managing Director of the IMF.

I think at this time first of my wife – whom I love more than anything – of my children, of my family, of my friends.

I think also of my colleagues at the Fund; together we have accomplished such great things over the last three years and more.

To all, I want to say that I deny with the greatest possible firmness all of the allegations that have been made against me.

I want to protect this institution which I have served with honour and devotion, and especially – especially – I want to devote all my strength, all my time, and all my energy to proving my innocence.

The extremely serious allegations against him made the decision a foregone conclusion. Now, the race to succeed him begins.

Usually the position of head of the IMF has gone to a European, while the head of the World Bank has been an American. But with the rise of the Brics countries (Brazil, Russia, India and China) and the increasing power of emerging countries such as Mexico, Indonesia and South Africa, some have called for a non-westerner to be appointed head.

This looks unlikely to happen, however. The IMF is in the middle of dealing with the European sovereign debt crisis. For the next few years at least, its leader will be dealing with European problems and knocking the heads of European politicians and central bankers together. Below, Harry Key runs through a list of likely candidates for successor to DSK.

Runners and riders

Christine Lagarde

First woman to be finance minister in a G7 nation

After winning widespread support and praise for her policies responding to the financial crisis in France, she is seen by many economists as Europe's leading candidate for the post. She may be hurt by her French nationality, while her questionable links to the businessman Bernard Tapie will cause unease among those who want a scandal-free IMF chie.

Axel Weber

Former president of the German Central Bank

Weber is a leading candidate and is rumoured to be the favoured candidate of the German chancellor, Angela Merkel. However, some see his hawkish policy as too hardline for the IMF's current position on Europe's financial problems, particularly after the generous terms offered to European countries by the fund under Strauss-Kahn.

Kermal Dervis

Vice-president and director of the global economy and development programme, Brookings Institution

Dervis was credited with saving Turkey from bankruptcy in the early 2000s and was honoured by the Japanese government for his work as former head of the UN Development Programme. His solid contacts and personal relationships in Europe make him a strong candidate.

Gordon Brown

Former prime minister of the UK

Although James Wolfensohn, a former World Bank chairman, has claimed that there "is no one better" for the position, the absence of any support from the British government makes it unlikely that Brown will achieve his dream of leading the IMF.

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Could Jeremy Corbyn still be excluded from the leadership race? The High Court will rule today

Labour donor Michael Foster has applied for a judgement. 

If you thought Labour's National Executive Committee's decision to let Jeremy Corbyn automatically run again for leader was the end of it, think again. 

Today, the High Court will decide whether the NEC made the right judgement - or if Corbyn should have been forced to seek nominations from 51 MPs, which would effectively block him from the ballot.

The legal challenge is brought by Michael Foster, a Labour donor and former parliamentary candidate. Corbyn is listed as one of the defendants.

Before the NEC decision, both Corbyn's team and the rebel MPs sought legal advice.

Foster has maintained he is simply seeking the views of experts. 

Nevertheless, he has clashed with Corbyn before. He heckled the Labour leader, whose party has been racked with anti-Semitism scandals, at a Labour Friends of Israel event in September 2015, where he demanded: "Say the word Israel."

But should the judge decide in favour of Foster, would the Labour leadership challenge really be over?

Dr Peter Catterall, a reader in history at Westminster University and a specialist in opposition studies, doesn't think so. He said: "The Labour party is a private institution, so unless they are actually breaking the law, it seems to me it is about how you interpret the rules of the party."

Corbyn's bid to be personally mentioned on the ballot paper was a smart move, he said, and the High Court's decision is unlikely to heal wounds.

 "You have to ask yourself, what is the point of doing this? What does success look like?" he said. "Will it simply reinforce the idea that Mr Corbyn is being made a martyr by people who are out to get him?"