After DSK

Dominique Strauss-Kahn might have been envied. He headed the International Monetary Fund at a crucial point in its evolution,and as it dealt with its most severe challenges since its foundation. In his early 60s,silver-haired and striking,he was expected to return in triumph to Paris in the next few months,claim the presidential nomination of the Socialist Party as his by right,and trounce incumbent Nicolas Sarkozy in next year’s elections. But now,as pictures of him being led around in handcuffs by the New York Police Department — following his identification in a police line-up by a hotel chambermaid who had accused him of sexual assault — hit the front pages in France and the world,that perfect career has come crashing down. The question is: what has Strauss-Kahn brought down with him?

He was already under fire from some parts of the French press for a lavish,“un-socialist” lifestyle,and because rumours were swirling about a dubious sexual history. In 2008,the IMF investigated accusations that he had abused his position while conducting an affair with a staff-member,eventually clearing him of wrongdoing other than a “serious error of judgment”. This new accusation — featuring a naked run after a chambermaid in his $3000-a-night hotel room — will cement his reputation,even if he is cleared of criminal charges. The Socialist Party will have to look elsewhere for their Sarkozy giant-killer.

And what of the IMF? As it modifies long-held shibboleths,it is time to consider whether the outdated,restrictive old-boys-club “tradition” that the World Bank be headed by an American and the IMF by a European too be re-examined. The IMF needs a firm hand at the top; its most crucial task involves looking hard at Europe’s balance sheets; some of the strongest,most secure economies in terms of international transactions are in Asia; and emerging economies,including Brazil,have demonstrated their responsibility in multilateral organisations and their ability to innovate policy. The time has come for the World Bank and the IMF to increase their stability,by broadening their leadership search. Strauss-Kahn’s replacement need not be from Europe.