When Dominique Strauss-Kahn became the Managing Director of the International Monetary Fund at the end of 2007, he faced a number of significant changes. The organization lost much of its legitimacy in the previous decade, and the country seemed more reluctant to borrow from the fund. Developing countries have increased their foreign exchange reserves, which reduced their dependence on potential IMF support package. The IMF was not able to influence the macroeconomic policy of the United States and China, in order to reduce global current account imbalances and developing countries have complained that they were underrepresented in the Fund. As the new managing director of the IMF, Strauss-Kahn had to decide how best to solve these problems and in which direction to send to the Fund. "Hide
by Ravi Abdelal, David Moss, Eugene Kintgen Source: Harvard Business School 26 pages. Publication Date: February 25, 2008. Prod. #: 708035-PDF-ENG
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