People in Economics: The Internationalist Economist

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Subject: Zhu Min, described as China’s “international civil servant.”
Author and publication: HENNY SENDER, F&D Magazine, June 2024.
Personal history and education:
- Born in Shanghai in 1952.
- Experienced the cultural revolution (mid-1960s to mid-70s); worked in a fish-canning factory for much of that decade.
- Entered Fudan University after a 10-year hiatus when universities were closed; graduated in 1982 with a degree in economics.
- Completed a master’s in public administration at Princeton and a doctorate in economics at Johns Hopkins.
- Early career: economist at the World Bank in the early 1990s; rose through the state-owned Bank of China; became deputy governor of the People’s Bank of China in 2009.
- IMF service: special advisor in 2010; then deputy managing director under Christine Lagarde; left after a fixed five-year term. At appointment in 2010, he was 58.
Current role (as of the profile): deputy chairman of the China International Economic Exchange Centre (after returning to Beijing eight years prior to the profile).

Governance reforms:
- Helped bring about a 6 percent shift in quota shares to emerging market and developing economies in his first year at the IMF.
- In 2015, pushed for inclusion of the Chinese renminbi in the special drawing rights currency basket.
Financial contributions and leverage:
- Instrumental in persuading China to contribute $45 billion to address the euro area debt crisis; cited as “by far the largest contribution.”
Institutional priorities he advanced:
- Giving small island member states a voice.
- Broader focus beyond traditional IMF emphasis to include jobs, growth in the developing world, and reducing income inequality (board agreement took two-and-a-half years to secure).
Personal style and engagement:
- Described as adaptable and integrative (“Min is water”), self-effacing, team-oriented, and active in Washington civil society (book club, volunteer housing renovations).
- Worked behind the scenes to achieve impact where possible.

Core belief: the biggest challenge is anti-globalization; the world still needs international cooperation and a “decent policy broker.”
Key policy recommendations and priorities he advocates:
- Repositioning the IMF to safeguard its independence, identity, and commitment to the global commons.
- Adjusting IMF governance and voting rights to reflect shifting economic power toward emerging markets (note: “The governance structure and voting rights at the IMF are way behind on this.”).
- Making special drawing rights more liquid and marketable as an alternative to overreliance on the US dollar.
- Broadening IMF focus from current account balances, fiscal balances, and exchange rates to include jobs, growth, and income inequality in developing countries.
- Providing early-warning systems for emerging crises and supporting resilience via regional safety nets (example referenced: the Chiang Mai Initiative).
- Coordinating global fiscal policy to support carbon neutrality and financing the transition, a role he argues neither governments nor capital markets currently fulfill.

Geopolitical and institutional headwinds:
- Rise of protectionism and populism in the US complicates IMF reform and the institution’s ability to control its own fate.
- Voting rights at the IMF do not reflect that “half of global GDP comes from emerging markets.”
- Tensions between the IMF and Beijing on China’s role in third-country debt resolutions and criticism of mainland economic policy complicate Zhu’s bridging role.
Realism of ambitions:
- Many of Zhu’s recommendations extend beyond the IMF’s traditional mandate; it is uncertain whether any international organization currently has the capabilities he envisions.
Diminishing mediating capacity:
- Fewer individuals able and willing to serve as mediators between China and the West, increasing the risk of “disastrous misunderstandings.”

Characterization:
- Portrayed as an idealist and reformer who believes in international harmony and constructive cooperation, wanted China to “play a constructive role” and support balanced dialogue on restructuring the international monetary system.
Continuing mission:
- Despite institutional resistance and geopolitical polarization, Zhu remains optimistic and patient about long-term reform (“it may take years to move the mountain,” he reportedly said).
Legacy indicators:
- Concrete institutional changes associated with his tenure: 6 percent quota shift; inclusion of the renminbi in the SDR basket; facilitation of a $45 billion Chinese contribution to euro area assistance.
Ongoing tensions:
- The profile highlights a fundamental tension between Zhu’s internationalist vision and a world increasingly characterized by protectionism, raising questions about the feasibility of his reform agenda.

People in Economics: The Internationalist Economist — Henny Sender, F&D Magazine, June 2024

Zhu Min: The Internationalist Economist
- Zhu Min: The Internationalist Economist (Markdown version)
- Zhu Min: The Internationalist Economist (PDF)