Christine Lagarde became the first woman to lead the International Monetary Fund on July 5, 2011, taking office during Europe’s sovereign debt crisis after four years as France’s finance minister.
The IMF Executive Board selected her on June 28 for a five-year term. She succeeded Dominique Strauss-Kahn, whose departure followed his arrest in New York that May.
Greece’s debt crisis and disagreements among eurozone governments over financial support were among her immediate responsibilities. Concerns about U.S. public finances also formed part of the economic backdrop.
The politics of the appointment
Lagarde moved to the IMF from President Nicolas Sarkozy’s government ahead of France’s 2012 presidential election, when the Socialists were preparing to challenge Sarkozy. She had served as finance minister since 2007.
Her appointment broke the gender barrier at the top of the IMF while continuing its succession of European managing directors. Her campaign included visits to China, Brazil and India as she sought support for her candidacy.
Scrutiny over the Tapie arbitration
Her record as finance minister was already under scrutiny over the decision to use arbitration in a dispute involving businessman Bernard Tapie. The case concerned Crédit Lyonnais’s handling of the 1993 sale of Adidas. Lagarde approved arbitration in 2007, and the panel awarded €285 million in damages in 2008. The gross amount, including interest, reached roughly €400 million.
Socialist politicians accused Lagarde of improper intervention. In May 2011, prosecutor Jean-Louis Nadal recommended a judicial inquiry into her role. Lagarde rejected the allegations, saying, “For my part, I’ve always acted with rigour and transparency, in only one sense: the public interest.”
The case later led to a ruling on December 19, 2016. The Cour de justice de la République found Lagarde guilty of negligence for failing to challenge the award. It did not find her guilty over the decision to use arbitration. The court imposed no penalty, and the conviction was not entered on her criminal record.
From corporate law to government
Before entering politics, Lagarde built a career at Baker McKenzie. In 1999, she became the firm’s first female chair, heading its Global Executive Committee. She joined the French government as minister for foreign trade in 2005 and became finance minister in 2007.
Unlike many senior French officials, she did not attend the École Nationale d’Administration, known as ENA. Lagarde later explained that she had failed to gain admission on her first attempt and missed the application deadline on her second.
Her background included study and work in the United States. She attended Holton-Arms School in Bethesda, Maryland, as an American Field Service scholar and worked in the congressional office of William Cohen. By the time of her IMF appointment, her periods in the United States had totaled about seven years.
Women’s representation at the IMF
Lagarde, who was 55 when appointed, described individual meetings with executive directors followed by a group interview. “Imagine a room with 24 men and you’re the only woman,” she said.
Her appearance also attracted political comment in France, where politician Laurent Fabius described her as “elegant.” Lagarde’s stated plans for the IMF included increasing gender diversity. “We want to hear women’s voices properly positioned,” she said.
