7 key insights from Christine Lagarde

Christine Lagarde, the head of the International Monetary Fund, recently sat down for an interview with Isaac Chotiner from Huffington Post Highline. The topics ranged from the Greek economy to whether mobile phones should be allowed in meeting rooms. Here are some of her key insights:

1. The challenges facing Greece are difficult, but not insurmountable

“So you have to restore your productivity in two ways: You work on your unique labour costs, as happened in Portugal, Spain, Ireland and Greece. And you improve the overall economy by restructuring it to make it more agile and prone to innovation. This is a choice Greece has yet to make.”

2. Even powerful women must face dismissive attitudes in the workplace

“There is still a little doubt in my mind as to whether there is a slightly dismissive response to my views because I am a woman. I might be unfair because I think that people in meetings and large groups have often been respectful and have often deferred to the views of the IMF as I express them. But one thing I will say is that in many forums that I have shared, I have noticed that when a woman speaks, people start chatting or looking at their emails or doing something else.”

3. There are distinct differences in the support systems offered to mothers in Europe and America

“I brought up my children, one in France, and I had childcare, publicly funded, from three months to three years. I had to get some family support, but all of that is much more accepted. It may not be the same in all countries. In Germany there is a bit of a cultural bias against women who do not raise children for a period of time. But here (in America), when I talk to young mothers, they have a terrible time finding support.”

4. She feels strongly about the use of mobile phones during meetings

 “It’s rude. Either you are in the room or you are not in the room. I tell people: ‘Turn your thingie (mobile phone) face down.’ The only person able to use it is the head of communication. Sometimes people cheat and I see them.”

5. Research into gender inequality is vital to improving the global economy

“I mean, when you demonstrate with numbers that having women contribute to the society and economy is actually going to raise GDP, by a factor of anywhere from 23% when you look at Saudi Arabia and India, to 3% in America, it is fairly compelling.”

6. While it may not appear to be part of their mission, the IMF has been involved in the European refugee crisis

“I will give you an example. We have a programme in place with Jordan. Jordan has increased its population by 25% by welcoming refugees from Syria. Their fiscal consolidation programme was completely changed so the Jordanians could cope with the flow of refugees. The second thing that we are doing, and hopefully it will help the Europeans, is some analytical work on the economic impact of migrations and the ways in which refugees are either welcomed or not, and how much that can help countries where the ageing of the population is becoming a big economic issue.”

7. She strongly believes that the recent influx of refugees could be beneficial for Germany

“I don’t want to prejudge because they have not done the analytical work, but I would bet that if the influx is well-managed. Yes, it is bound to be a positive in a society which is ageing and which has the fiscal space to accommodate it.”

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Author: Murray Nicol is Digital Project Lead at the World Economic Forum

Image: International Monetary Fund Managing Director Christine Lagarde in Washington January 17, 2013. REUTERS/Gary Cameron