Commencement Address at the Illinois Institute of Technology by Christine Lagarde, Managing Director of the IMF

IMF News, May 16, 2015

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Canonical URL: Commencement Address at the Illinois Institute of Technology by Christine Lagarde, Managing Director of the IMF

Occasion: Commencement at Illinois Institute of Technology, Chicago, May 16, 2015.
Speaker: Christine Lagarde, Managing Director, International Monetary Fund.
Personal connection: mother of one of the 2,591 graduates.
Three guiding themes introduced for graduates:
- Reinventing yourself and welcoming change and risks.
- Standing up for your values and ideas.
- Encouraging transformational change in others.

Key life examples:
- Exchange at age 17: left France for an American host family and school in Bethesda, Maryland — recounted as happening 42 years ago and described as transformational.
- Professional shift: elected chairman of Baker & McKenzie in 1999; left private sector to join French government in 2005.
Lessons and guidance:
- Be prepared for change, be willing to take “smart risks”, and re-invent yourself.
- Adopt a global perspective in personal and professional life.
Relevant statistics and observations:
- Forty-eight percent of IIT students are non-U.S. nationals hailing from 97 countries.
- Trend noted: a growing number of international students will return home to pursue opportunities in fast-growing economies, particularly in Asia and Africa.
Examples of disruption and unpredictable opportunities:
- Noted firms that transformed industries without owning traditional assets: Airbnb, Uber, Facebook, and earlier Amazon.com.
Quotation cited: Thomas Jefferson — “I am a great believer in luck and I find the harder I work, the more I have of it”.

Personal anecdotes illustrating values in action:
- Chose law school to defend death penalty cases; later the death penalty was eliminated in France.
- Faced gender discrimination early in career — told she would never make partner because she was a woman; left the firm and used the experience as strengthening motivation.
Areas highlighted for action:
- Respect for others and gender equality.
- Removing barriers that hold back women, especially in the technology sector.
Evidence and implications:
- Studies show that without female leaders, women are significantly less likely to win endorsement for their ideas than their male colleagues, translating into a loss of market opportunities and lower growth potential.
Demographic projection:
- By the end of this decade, millennials will make up half the U.S. labor force.
Practical encouragements:
- Stand up for respect and fairness now; use social media, personal influence, and voting — “with your money, with your feet, and with your ballot”.

IMF example during the Euro Area sovereign debt crisis:
- In 2011, IMF research highlighted European banks holding bonds worth only a fraction of their book value, warning of a possible “Lehman Brothers moment.”
- Result: over the following 12 months, banks raised hundreds of billions of euros in fresh capital and European leaders revamped regulatory structures to create a safer banking system.
Role of institutions:
- The IMF lends money to countries in distress and sounds global alarm bells to encourage global cooperation; described as a “ruthless truth-teller” (John Maynard Keynes).
Leadership lesson:
- To inspire others you must move out of your comfort zone; transformation requires “guts, grit, and generous amounts of time and energy.”
Forms of engagement recommended:
- Mentoring, teaching, running programs, listening and supporting peers — all contribute to mutual transformation.

Overall message: welcome change and risks, stand up for values and ideas, and encourage transformational change in others.
Closing exhortation: “Les voyages forment la jeunesse.” — shape your journey by welcoming change and risks, by standing up for yourself, and by encouraging transformational change in others. Bon voyage!

Commencement Address at the Illinois Institute of Technology by Christine Lagarde, May 16, 2015.