Speech

Remarks by Horst Köhler
Managing Director, International Monetary Fund
August 29, 2001

Distinguished guests, Ladies and gentlemen, dear Rhoda Fischer, dear Stan, I am honored to host this dinner to bid farewell to Stanley Fischer.

I am really glad to see so many of Stan's good friends and colleagues here tonight. Michel Camdessus very much regrets that he was not able to come, but he has sent a letter on this special occasion. I know Stan would be grateful if Jack Boorman could read it for us.

What can I add to this moving and personal testimony from Michel Camdessus, who came to know Stan so well during their five-year partnership?

First, I want to express my very personal thanks and admiration. Anyone who comes to the IMF as Managing Director has to learn a lot. Stan helped me in a totally unselfish manner to come to grips with the job, as I am certain he would have done for any new MD. It seems to me that no one could have had a stronger sense of responsibility and loyalty to the IMF than Stan Fischer. And indeed, strengthening the IMF as an institution is also one of my main objectives, because I believe this is needed to help make globalization—or better, integration of economies and societies—work for the benefit of all.

But I also detected that Stan, although a learned man and a brilliant economist, is equally—or perhaps even more—guided by his humanity.

Last February, I was with Jim Wolfensohn in Africa, when Turkey was struck again by crisis. I called Stan, certainly somewhat concerned about the IMF's response. Ladies and gentlemen, you can't imagine how reassuring it was to hear Stan Fischer's sonorous, calm, balanced, unexcited voice. That voice restrains you from panicking and encourages you by itself to a considered and systematic way of thinking. I offered to Stan that I would cancel the rest of my meetings in Africa and fly back to Washington for crisis management. His answer was in the sense, "We will keep you closely informed. But stay there, because it is important that the Managing Director of the IMF is present in Africa."

This advice may have had something to do with Stan's African roots and heritage. But I think there was more to it. It reveals (in a nutshell) his great concern that too many people have been left behind in the process of development and prosperity. I am sure that Stan has been deeply troubled by the slow progress on this front, as well as the unfortunate cases in which problems seem virtually unsolvable. And he is certainly concerned when the social cost of necessary adjustments is high. No allegation about the IMF—and, especially, about Stan Fisher—could be more stupid and unjustified as the accusation, after the Asian crisis, that the IMF was indifferent to social problems. I want to assure you, Stan, that as far as I am in charge, the IMF will play an energetic role, based on its mandate and expertise, in the fight against poverty—and it will stay engaged in Africa.

In coming to the IMF, it was and is my intention to strengthen the institution through reform. But one of the things I soon learned was that reform was already well underway. The degree of change in the IMF's policies in recent years has added up to what Stan himself has referred to as a "quiet revolution." This included, for instance, a sea-change in transparency (not least for the Fund itself), the work on standards and codes for good monetary, financial, and fiscal policies, and an enhanced focus on financial sector vulnerabilities. Perhaps the change was too quiet, since a lot of people still feel nothing much has happened. But I do think that the initiatives taken under the leadership of Michel Camdessus and Stan Fischer, are beginning to pay off—and will pay off even more in the future. During the past year we have received the support of the membership to broaden this reform process, and I suspect that recent events may help to enhance the momentum.

In seven years, Stan has left his mark on virtually every major issue, and on the character of the institution as a whole. I think we need to consider, how could one man have accomplished so much in so little time?

Stan is, first of all, one of the world's foremost economists. But that is only the starting point. He also enhances his advice on economic policy with a clear understanding of practical matters and political realities. Beyond this, Stan is a great teacher and communicator, a talent that does not always go hand-in-hand with economic brilliance or excellent policy advice. And even rarer, Stan is a remarkable strategist, who is always thinking not just about what comes next, but many steps ahead. The overall effect is very persuasive. Stan once summarized his methodology for dealing with contentious debates in this deceptively simple way: "Be patient, listen very carefully to the arguments of all the panelists, and then give them hell on the basis of rigor, evidence, and consistent reasoning."

But I do not think the story ends here. Stan could not have accomplished so much, or have won such a place in our hearts, without his extraordinary personal qualities. Here I would mention especially his human warmth and kindness, his moral integrity, his energy, and his sense of loyalty and team spirit.

It's no accident that Stan has made so many friends around the world. They have recognized that he treats them with respect and only wants the best possible outcome for everyone. His unfailing honesty and integrity are a benchmark for all of us. He is gentle and kind to the people he meets, but at the same time he can be very candid when this is needed. What I have particularly admired is Stan's approach in dealing with his colleagues in the staff and Management. All of us, including the Managing Director, could use this as an example. Stan is in principle always positive, and I must say this really brings out the best in people.

Nobody could talk about Stan Fischer without mentioning how hard, and how efficiently, he has worked. If an important paper reaches him in the evening, no matter how long and complex, he can usually be counted on to read it carefully, offer insightful comments, and reach a considered decision by the following day. And the phone calls and e-mails that he sends, 24 hours a day, seven days a week make it clear that Stan has abolished the concepts of time zones, sleep, and vacations. It is no accident that he failed to enjoy many months of
unused leave, but is fully engaged up to the last minute.

If humanity is Stan's beacon in life, then one of the reasons must be his wife, Rhoda. Stan once told me that Rhoda is his most important advisor. So it is clear that we also owe her a tremendous debt of gratitude, as well as our apologies for the strenuous life Stan has lived over the past seven years. Because I feel that Rhoda is wise and very grounded in human reality, I have to wonder whether she might not have advised him to retire from the Fund. If so, I have to say that I am not so happy because I really regret his leaving. But I respect his decision. And what is again typical for Stan Fischer, he has left his house very much in good order—not least, by helping to recruit an able successor in Anne Krueger, as well as our new department heads, Gerd Häusler, Ken Rogoff, and Tim Geithner (who will join us shortly). I welcome Anne Krueger and our new colleagues and look forward to a good cooperation.

Stan's departure is a great loss for the Fund, but he is leaving an incredible legacy. He has looked after the global interest through his nurturing of individuals, nations, international institutions, and the global trade and financial system. Stan is a US citizen, but he is a true citizen of the global village and, in the best sense, someone who is working for a better world. He reflects the American spirit—to fight for freedom and equality of opportunity. And in this way, he is representing the ideals of this great nation in the best possible way. I know that we are all greatly indebted to him. And I very much hope, and would be honored, if we can remain friends in the future.

Stan, from the IMF Board, Management, and staff, thank you. Stan and Rhoda Fischer, God bless you.