The Class of 2018: A New Odyssey

IMF News, May 12, 2018

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Commencement address by Christine Lagarde, IMF Managing Director, Claremont, California, May 12, 2018.
Framing device: borrows the Odyssey and Athena to reflect on ten-year horizons — “Ten years backward, ten years forward.”
Central challenge posed to graduates: how to use present advantages responsibly to shape the world for future classes (notably the class of 2028).

Uses the Athenas’ “pillars” (focus, passion, resilience) as an organizing metaphor.
Emphasizes moral responsibility tied to privilege, citing J.K. Rowling: “You have a moral responsibility when you’ve been given far more than you need, to do wise things with it and give intelligently.”
Core questions for graduates (posed as societal choices to be made now):
- Who benefits from technological change and who is left behind?
- Will technology companies be regulated like public utilities?
- Will privacy and consent be protected in data practices?
- What will happen to those who lose jobs due to automation?
- Will excessive inequality continue to fracture society?
- Will we control carbon emissions and tackle climate change?
- Will we invest more in human capital than in tangible assets?

Context and IMF action:
- In May 2008 the global economy was rattled: Bear Stearns had folded and Lehman Brothers was about to go under.
- The IMF “deployed its firepower,” committing “hundreds of billions of dollars” to secure the global financial system, protect deposits, and kickstart the global economy.
- Through international cooperation, a global depression was avoided; economies and financial systems were made more resilient.
Economic and labor-market consequences for graduates:
- Research indicates students graduating in the US in 2008 and 2009 faced higher unemployment and lower salaries than peers before and after.
- By 2013, the average college graduate who finished school during the recession earned 36 percent less than peers who graduated a few years earlier.
Individual and societal adaptation:
- Examples of career shifts: displaced finance graduates moving to Silicon Valley to build start-ups; others moving into law, public service, education.
- International students returned home and helped rebuild their economies.
Overarching lesson: adversity prompted innovation and contributed to rebuilding efforts via international cooperation.

Technological and social scenarios envisioned by 2028:
- Ubiquitous robotics (examples: robots that recharge solar batteries), biometric transactions (retinal scans), possible mainstreaming of crypto-currencies, and diminished use of cash.
- Education transformed by AI and holographic interaction (e.g., digital speaker forums, professors available around the clock via AI), while some enduring challenges persist (e.g., competitive courses like Econ 50).
- The “fourth industrial revolution” possibly evolving into the “fifth industrial revolution” with stronger roles for services and data.
Policy and distributional questions highlighted as immediate priorities (addressed to the class of 2018 as current decision-makers):
- Regulation of large technology firms and treatment akin to public utilities.
- Data privacy and consent protections.
- Policies to manage job displacement from automation and to support retraining and human capital investment.
- Measures to reduce excessive inequality.
- Climate policy to control carbon emissions.
Call to action: these questions “cannot wait for the class of 2028” — the current graduates must help find answers today.

Personal testimony and historical context:
- Christine Lagarde recounts career obstacles in the 1970s and as a young working mother.
Persistent gender gaps and statistics preserved from the speech:
- “Today, women in the United States make 80 cents for every dollar a man makes.”
- “The percentage of women in the workforce in the US has stagnated — it is at the same level it was in the mid-1980s.”
- “Less than seven percent of Fortune 500 CEOs are women.”
- Noted anecdotal finding: “there are more Fortune 500 CEOs named James than Fortune 500 CEOs who are women.”
Global legal barriers: millions of women face laws preventing them from working, holding title to property, controlling bank accounts, or traveling independently.
Policy emphasis: acceleration of gender-equality reforms; mobilizing rising leaders (class of 2018) to address remaining gaps so future graduates benefit.

Reiterates the Odyssey metaphor: homecoming brings new challenges but also support (Athena, Eurycleia).
Core reassurance: education, experience, and community love/friendship provide the confidence to confront future hurdles.
Final charge: graduates should use their freedoms and privileges to build a better world for subsequent generations — “Thanks to the class of 2018, the world is a better place.”

Commencement Address by Christine Lagarde, Claremont, May 12, 2018.