Mysore-Born Gita Gopinath joins IMF as its first female chief economist
Washington, Jan 8: Prominent Indian-American economist Gita Gopinath has joined as the chief economist of the International Monetary Fund, becoming the first woman to occupy the top post at the global lender.
Gopinath, 47, joined last week at a time, when she believes the world is experiencing a retreat from globalisation, posing challenges to multilateral institutions.
The John Zwaanstra professor of International Studies and Economics at Harvard University, Gopinath, a US citizen, succeeds Maurice (Maury) Obstfeld as Economic Counsellor and Director of the IMF's Research Department. Obstfeld retired December 31.
Announcing her appointment on October 1, IMF Managing Director Christine Lagarde described her as "one of the world's outstanding economists with impeccable academic credentials, a proven track record of intellectual leadership and extensive international experience."
The 11th chief economist of the IMF, Mysore-born Gopinath in a recent interview to The Harvard Gazette described her appointment at the IMF as a "tremendous honour" and said the appointment of the first ever woman for this position speaks highly of IMF's Managing Director Lagarde.
"She is phenomenal, not just in her leadership of the IMF but as a role model for women around the world," she said.
Identifying some of her top priorities at the IMF, Gopinath told The Harvard Gazette that she would like the IMF to continue to be a place that provides intellectual leadership on important policy questions.
Among the research issues that I would like to push, one would be understanding the role of dominant currencies like the dollar in international trade and finance. We could do more on the empirical side to try to understand countries' dollar exposures and on the theoretical side in terms of the implications for international spillovers, consequences of dollar shortages, etc, she said.
Most countries invoice their trade in dollars and borrow internationally in dollars. This is a central part of the international price system and the international financial system and it will be exciting to explore its consequences in greater depth with the IMF, she said.
Gopinath considers the perceived retreat from globalisation as one of the top challenges being faced by the IMF.
"The one (biggest issues being faced by the IMF) that is absolutely clear and present is that we are seeing the first serious retreat from globalisation. This has not happened in the past 50 or 60 years, when the world moved toward lower tariffs and increasing trade across countries, she told the prestigious Harvard publication.
"Over the past several months, we have the US-imposed tariffs and retaliation to them from China and other nations. There is in general growing uncertainty about trade policy, including the one arising out of Brexit (the British move to leave the European Union).
"While the trade has reduced global poverty and raised livelihoods, its consequences for inequality, and on whether the rules of engagement are fair, are real concerns that need to be addressed, she said.
Gopinath said there is also a concern about whether there is the right multilateral institutions and frameworks in place to make sure everybody feels that there is fairness in trade. And the same goes for capital flows," she added.
"Foreign direct investment (FDI) was always viewed very favourably by countries. But because most of the FDI is now in tech-heavy firms, there are growing concerns about national security and international property theft. So I believe this retreat from globalisation and this retreat from multilateralism is quite unique to the times we are living in," Gopinath said.
Another important concern, she said, is the health of emerging markets as the US continues to normalize its interest rates.
The capital flows to several markets have reversed, putting pressure on their exchange rates and consequently on inflation, and on balance sheets, given that several emerging markets borrow heavily in dollars, said the IMF chief economist.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
CM Siddaramaiah ready to "sacrifice power" or continue, as per Rahul's directions: Rajanna
Bengaluru (PTI): As the speculation about leadership change in Karnataka rages yet again, a senior party leader and close aide of Siddaramaiah on Tuesday said the Chief Minister was ready to "sacrifice power" or continue in the top post, based on the directions of Congress leader Rahul Gandhi.
KN Rajanna also seemed to support the idea of a change in the party leadership as well, an apparent reference to deputy CM and Karnataka Congress president D K Shivakumar, whose supporters want him to be made CM.
Urging the Congress high command to clear the confusion on the leadership issue, Rajanna, a former minister who is considered close to Siddaramaiah, warned that continued uncertainty would be detrimental for the party and governance.
He also insisted that if the chief minister is changed, there should be a "Dalit CM" in Karnataka.
The development comes amid speculations within the party and political circles about a possible decision on leadership change and cabinet reshuffle after May 4, once the results for assembly elections in four states and one union territory, along with bypolls to two assembly segments in Karnataka, are announced.
"The Chief Minister has an open mind and has said he will abide by the directions of the high command and Rahul Gandhi, and that everyone should cooperate. The CM has repeatedly reiterated that he will abide by Rahul Gandhi's directives and suggested that everyone follow the decision. All ministers have agreed to it," Rajanna said in response to a question about the CM's recent discussion with his close cabinet colleagues and MLAs.
Speaking to reporters here, he said, "power is not permanent for any politician, those who lose it will try to gain it and those who have gained it will try to maintain it. The CM's mindset is that he is ready to sacrifice power or continue in power as per Rahul Gandhi's directions. He will abide by Rahul Gandhi's decision."
When asked whether supporters of Siddaramaiah demanded that he continue as CM, and if he steps down, that an AHINDA leader should take over, the MLA said the matter is for the high command to decide.
"We have told the high command what we had to. Ultimately it is left to high command and Rahul Gandhi," he said.
AHINDA (Kannada acronym for minorities, backward classes, and Dalits) is considered as the strong support base of Siddaramaiah and also the Congress party.
When asked about his past statement that there should be a Dalit CM after Siddaramaiah, Rajanna said, "What's wrong with it. I am committed to the statement that there should be a Dalit CM."
MLAs and leaders who want Shivakumar to be elevated have recently claimed they expect some "sweet news" by May 15, which is their leader's birthday.
When asked whether the party president should also be changed, the former minister said that everything has to change.
"If the ministers have to change, why shouldn't the party president. Everything will be decided by high command," he said.
Shivakumar is the state Congress President and has completed six years in the post.
For the government to function more actively towards the welfare of the people it is important that the high command clears the existing confusion in the Congress party at the earliest, Rajanna said, adding, the ministers have gone to discuss the same with the leadership.
"I too urge that the high command should not allow the confusion to continue; as long as the confusion continues, it is detrimental for the party and governance. I will also go to Delhi after May 4," he said.
"The high command is at it (resolving the confusion), but because of elections, the leaders are busy. The matter cannot be decided hastily, it must be decided with a clear state of mind, as it involves the future of the people of Karnataka and the party," he said, expressing confidence that the party will take appropriate decisions after examining all aspects.
PWD Minister Satish Jarkiholi on Monday met Congress President Mallikarjun Kharge and General Secretary (in charge of Karnataka) Randeep Surjewala in New Delhi and requested them to address the speculation regarding the change of leadership in the state.
Subsequently Social Welfare Minister H C Mahadevappa too met the party leadership in Delhi.
Both Jarkiholi and Mahadevappa are considered close to Siddaramaiah.
Regarding the demand for cabinet reshuffle, Rajanna said there is an expectation within both the party and the public that the administration should be sensitised more, and there is nothing wrong in new people getting opportunities.
Responding to a question, Rajanna said, there is a feeling among AHINDA communities that their expectations from the current government have not been fulfilled. "I too agree with it," he said.
Rajanna, who recently alleged that the Chief Minister is "helpless" and under some "compulsion," reiterated his statement by saying, "compare Siddaramaiah as CM during 2013-18 and 2023 to now, there is a huge difference, people are saying it."
The leadership issue is being hotly debated as Shivakumar's supporters have been demanding his elevation since late 2025, in lines with a rumoured power-sharing agreement involving Siddaramaiah when the party won the 2023 Assembly elections.
