International Monetary Fund Managing Director Christine Lagarde said on Wednesday the global economy was rebounding from the financial crisis but recovery remains unbalanced.
"When we look at our growth forecasts for 2011, 2012, we are clearly on the rebound and things are improving and are getting better when compared with the situation as it was in 2009 at the height of the crisis," she said at her first press conference as the new IMF chief.
But she said growth remains "unbalanced" with emerging-market economies growing much faster than those of developed countries.
She acknowledged demands that institutions such as the IMF better reflect the shifting balance of power in the global economy and said the idea of creating a top-ranking post at the IMF to give a higher profile to emerging markets was "not a bad idea."
"The world is going to continue to change," she said. "We have these tectonic plates that are moving at the moment, and that needs to be reflected in the composition of governance and employment at the Fund."
Emerging markets had wanted an IMF leader from their ranks but Lagarde's appointment represents a continuation of a tradition that a European head the lending institution.
She said IMF member nations needed to complete reforms agreed to in 2010 to give developing countries more power within the institution.
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"But that should also reflect in our employment policies, in our training policies, in the way in which we build teams, in the way in which we organize recruitment so that people are not clones of each other," Lagarde said.
Lagarde faces an array of issues and she acknowledged that among the most pressing was dealing with a European debt crisis that has required bailouts for Ireland, Portugal and Greece. She confirmed that the IMF board would meet on Friday to consider a disbursement of funds for Greece.
The new IMG director also signed up for tougher ethical rules in the aftermath of the hit to the lender's reputation from former director Dominique Strauss-Kahn's resignation amid accusations he sexually assaulted a hotel housekeeper in New York City.
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Lagarde's terms of employment were made public, where she was greeted by IMF First Deputy Managing Director John Lipsky, head of the IMF's board of member countries, Shakour Shaalan, and dozens of news cameras.
"The contract makes more explicit the higher standards of ethics behavior," IMF spokesman William Murray told Reuters.
The language in the contract draws from new staff conduct rules published by the IMF in May.
Those rules were issued in response to a 2008 affair then-IMF chief Strauss-Kahn had with a female staff economist. Strauss-Kahn was cleared by the board of harassment and abuse of power, although he apologized for an "error of judgment."
Strauss-Kahn resigned on May 18 to fight the charges. Sources familiar with the case say prosecutors now have doubts about the maid's credibility as a witness, raising the prospect the case could be dropped.
Lagarde's contract holds her to "highest standards of ethical conduct consistent with the values of integrity, impartiality and discretion."
It also requires her to avoid "even the appearance of impropriety." Further, it states that "in the performance of your duties as managing director, you have an exclusive duty of loyalty to the fund and shall avoid any conflict of interest or the appearance of such a conflict."
Also new is a requirement that she participate in an ethics training program mandatory for all IMF staff.