The IMF’s structural adjustment

The excellent Bretton Woods Project has news of happenings at the International Monetary Fund: it’s having to lay off 15 per cent of its staff.  Here’s more:

The December announcement by [Managing Director Dominique] Strauss-Kahn that he would lay off 300 to 400 staff (see Update 58) is being viewed as a quid pro quo to secure US Treasury support for giving the IMF an endowment. The G7 has demanded that the IMF cut its expenses before considering how to boost its income. Inside sources have said that the managing director has been holed up in his office working on the Fund’s budget and how to come up with cuts to the work force, meaning that he has had little time to work on what is supposed to be the “cornerstone” of Fund reform: changes to its governance structure.