A Conversation with the IMF's Christine Lagarde

At a September 30 event hosted by Council of the Americas, IMF Managing Director Christine Lagarde gave a preview of critical issues facing the global economy ahead of next week’s Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund in Lima. She opened by talking about challenges such as the worldwide refugee crisis and climate change, quoting Peruvian writer Mario Vargas Llosa, who said: “Uncertainty is a daisy whose petals are never fully plucked.” She went on to dissect economic uncertainties facing the world’s economy, including questions surrounding China's slowdown and a U.S. Federal Reserve rate hike. "We see global growth that is disappointing and uneven," said Lagarde, who called for a “policy upgrade” and outlined a series of recommendations for advanced and emerging economies. However, she acknowledged that recommendations are easy to make and implementation far harder to carry out, urging international cooperation to face potential global economic turbulence. Lagarde also urged leadership from the United States, saying the U.S. Congress should ratify the IMF’s 2010 fiscal and governance reforms. On Latin America, Lagarde highlighted the progress made on lifting millions from poverty but also referenced the hardships faced by countries such as Chile, Colombia, and Venezuela due to lower commodity prices. Lagarde also described Brazil as dealing with "serious economic difficulties." She commended Mexico for its reform agenda while noting that lower oil prices resulted in a difficult environment for implementing the country’s energy reform.