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Lagarde, 55, was selected by consensus without a formal vote. Earlier Tuesday, the U.S. government threw its official support behind her, effectively taking any drama out of the race.
“The IMF has served its 187 member countries well during the global economic and financial crisis, transforming itself in many positive ways. I will make it my overriding goal that our institution continues to serve its entire membership with the same focus and the same spirit,” Lagarde said in a statement.
“The IMF must be relevant, responsive, effective and legitimate to achieve stronger and sustainable growth, macroeconomic stability and a better future for all,” she added.
Lagarde, the first woman and first noneconomist to run the IMF, will succeed her countryman, Dominique Strauss-Kahn, who left in disgrace in May after being arrested on sexual-assault charges. John Lipsky has been running the IMF on an interim basis.
The institution is playing a key role in the financial rescue of troubled euro-zone nations, including Greece.
Her only serious competitor, Mexican central-bank governor Agustin Carstens, never won the backing of the major emerging-market nations that had expressed irritation at the tradition of naming a European to head the IMF and an American to run the World Bank.
China’s central-bank governor told The Wall Street Journal on Monday that the world’s No. 2 economy expressed its “full support” for Lagarde. Some speculated that the Brazilian-Mexican rivalry for leadership of Latin America played a role in Carstens’s inability to win support.
Observers and press reports have speculated that White House economist David Lipton will be named to the No. 2 spot at the IMF, replacing Lipsky who is retiring.
“[French Finance] Minister Lagarde’s exceptional talent and broad experience will provide invaluable leadership for this indispensable institution at a critical time for the global economy,” said Treasury Secretary Timothy Geithner in a statement, breaking a long silence.
“We are encouraged by the broad support she has secured among the fund’s membership, including from the emerging economies. I also want to commend my friend, Agustin Carstens, on his strong and very credible candidacy,” he added.
The IMF and European Union’s joint rescue of euro-zone nations is encountering stiff political resistance, notably in Greece, where a public-sector strike was conducted ahead of Wednesday’s vote in the parliament for new austerity measures.
Those funding the rescues, notably Germany, also have seen widespread disapproval. There also are signs the IMF is becoming a political issue in the United States.
Eight Republican senators on Tuesday wrote Geithner, saying that IMF help for Greece would violate the “no more tax-funded bailouts” pledge that President Barack Obama made when the Dodd-Frank bank-reform law was signed.
The senators asked for clarification of what Obama meant when he told German Chancellor Angela Merkel that the United States will “cooperate fully in working through these issues both on a bilateral basis, but also through international and financial institutions like the IMF.”
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