Finance

News

Open letter to G20 Finance Ministers, Central Bank Governors and the IMF: Civil society organizations call for principles for fair channeling of Special Drawing Rights

30 September 2021 | Letters


Notice: Undefined variable: briefing_cover in /var/www/web130/web/wp-content/themes/bretton-woods-project/library/template-fragments/article.php on line 70

As the pandemic exacerbates multiple crises in developing countries, Special Drawing Rights (SDRs) are a crucial option to help finance the COVID response and hasten an equitable and inclusive economic recovery. With the SDR distribution being proportional to IMF countries’ quotas, the new allocation of US$650 billion does not ensure sufficient SDRs go to developing countries. This is why many have been calling for an allocation in the order of US$3 trillion. Moreover, advanced economies are in less need of SDRs given their access to a wider array of monetary and financial tools for the response and recovery. Thus, it is essential that the recent allocation be quickly followed by rechanneling a significant portion of advanced economies’ SDRs to developing countries.

We strongly believe that successful and equitable recovery is contingent on transparency and a participatory process inclusive of civil society in all countries. This also applies to international spaces making decisions on SDR channeling mechanisms, including the G20 and the IMF, where civil society has not had, so far, sufficient opportunities to engage on this matter.

We urge you to ensure SDR channeling options align with a basic framework of principles that many academics, experts and civil society colleagues around the world echoed over recent months.

THE CHANNELING OPTIONS SHOULD:

  1. Provide debt-free financing, so it does not add to unsustainable debt burdens of developing countries, whose annual external public debt payments are projected to average US$300 billion over 2021 and 2022. Grant-based financing is ideal but, if additional loans are to be offered, then maximum concessionality is critical (zero interest and lengthy repayment terms with extended grace periods).
  2. Refrain from tying transfers to policy conditionality (directly or indirectly). Conditionality will lengthen the time it takes to negotiate such financing, could force countries into adopting difficult adjustment or austerity measures; or put the financing beyond reach for countries unable to comply with such conditions.
  3. Be accessible to middle-income countries. These countries have persistently been left out of debt relief initiatives and concessional financing, and should not be excluded from yet another financial assistance option when many of them face deep debt distress and challenging pandemic vulnerabilities.
  4. Include transparency and accountability safeguards on both providers and recipients of such financing in the spirit of democratic ownership, strengthening independent scrutiny, participation and accountability to citizens.
  5. Ensure that SDR contributions are additional to existing ODA and climate finance commitments. Only SDRs channelled to developing countries as grants should count as ODA, or, where appropriate, against the climate finance goal of US$100 billion.
  6. Prioritize SDR use that expands international grant funding for combatting the pandemic through budget support for public services and the public sector workforce in health and education, for social protection and other needs. Grants can also target promotion of a fair recovery that supports climate justice, and tackles economic and gender inequality, including the unpaid care burden that women bear, and the COVID-19 pandemic exacerbated.

We also call for agreement on a global repository to report on channeled SDRs. This will help limit fragmentation and be an important measure for accountability of commitments and tracking the overall impact of SDRs, including for ongoing learning.

We are aware that the Poverty Reduction and Growth Trust (PRGT) is being considered as a favoured option for SDRs channeling; however, it is important to note that the PRGT does not reflect the principles of being debt-free, conditionality-free, and accessible to all developing countries. We urge you to consider ways to improve the PRGT option, including channeling via its emergency financing vehicle (Rapid Credit Facility).

We also encourage you to identify SDR channeling mechanisms that support debt cancellation, including through the Catastrophe Containment and Relief Trust, and to consider alternative options which align best with the principles stated above.

To create options to scale up SDR channeling volumes and reach more developing countries we encourage you to seriously discuss alternative options beyond the PRGT and beyond the IMF more broadly. However, other rechanneling vehicles under discussion, such as a Resilience and Sustainability Trust and Multilateral Development Banks, still appear far from embodying these principles.

Finally, neither the initial SDR allocation nor the channeling of SDRs can be a substitute for the urgent implementation of debt relief measures that benefit both low- and middle- income countries, especially to ensure that the additional resources are not directed to repay external private and other creditors

SIGNATORIES

REGIONAL / GLOBAL ORGANISATIONS

  1. Access to Human Rights International AHRI
  2. Action Aid International
  3. ACTIONS PLURIELLES
  4. Advocacy Initiative for Development (AID)
  5. Africa Network for Environment and Economic Justice(ANEEJ)
  6. African Forum and Network on Debt and Development AFRODAD
  7. African Women’s Development and Communication Network(FEMNET)
  8. AidWatch Canada
  9. Alliance for Sustainable Development Organization (ASDO)
  10. Arab Watch Coalition
  11. Associated Country Women of the World
  12. Association Biowa
  13. AULA TIDEs UN SDGs Action Education & Programming
  14. Blue Ridge Impact Consulting
  15. Both ENDS
  16. Bretton Woods Project
  17. Burundi Rugby League Rugby a XIII Cooperative, Central & East Africa
  18. Campaign for Human Rights and Development International CHRDI, Sierra Leone West Africa
  19. Campaña Latinoamericana por el Derecho a la Educación (CLADE)
  20. Candid Concepts Development
  21. Caritas Ghana
  22. Center for Economic and Social Rights (CESR)
  23. Christian Aid
  24. Civil Society Action Coalition on Education for All
  25. Coalition for Health Workers (HRH PLUS)
  26. Confederation of Indonesia People Movement (KPRI)
  27. Coordinadora de Organizaciones de Desarrollo
  28. DAWN (Development Alternatives with Women for a New Era)
  29. Derecho Ambiente y Recursos Naturales DAR
  30. Development Alternatives
  31. Diverse Voices and Action (DIVA) for Equality
  32. Ekumenická akademie (Ecumenical Academy)
  33. Equidad de Género: Ciudadanía, Trabajo y Familia
  34. Estonian Roundtable for Development Cooperation
  35. European Network on Debt and Development EURODAD
  36. Feminist Task Force
  37. FENASSEP/ISP, SINERGIE DES TRAVAILLEURS DU TOGO/STT
  38. Fight Inequality Alliance
  39. Fight Inequality Alliance, Asia
  40. Financial Transparency Coalition
  41. FOKUS – Forum for Women and Development
  42. Fundacion para Estudio e Investigacion de la Mujer
  43. Fundación para la Democracia Internacional
  44. Fundacion SES
  45. Gender and Development Network
  46. Génération Maastricht
  47. Geneva Finance Observatory
  48. Global Campaign for Education
  49. Global Coalition Against Poverty GCAP
  50. Global Policy Forum
  51. Global Socio-economic and Financial Evolution Network (GSFEN)
  52. Global Youth Online Union
  53. Health Action International Asia Pacific
  54. Indigenous Peoples Global Forum for Sustainable Development, (International Indegeous Platforme)
  55. Institute for Economic Justice
  56. Institute of the Blessed Virgin Mary – Loreto Generalate
  57. Internacional de Servicios Públicos (ISP)
  58. International Council for Adult Education
  59. International Women’s Rights Action Watch Asia Pacific (IWRAW Asia Pacific)
  60. Jubilee Debt Campaign
  61. Jubilee USA Network
  62. Ladies of Great Decorum
  63. Latin American Network for Economic and Social Rights -LATINDADD
  64. Latinoamérica Sustentable
  65. Medicus Mundi Mediterrània
  66. Medicusmundi spain
  67. Missionary Oblates of Mary Immaculate
  68. Mumahhid Family of Greater Jerusalem
  69. MY World Mexico
  70. NGO CSW LAC
  71. Okogun Odigie Safewomb International Foundation (OOSAIF)
  72. OXFAM
  73. Plateforme française Dette et Développement (PFDD)
  74. Red de Justicia Fiscal para América Latina y El Caribe RJFALC
  75. Regions Refocus
  76. RIPESS
  77. SAUDI GREEN BUILDING FORUM
  78. Save the Children
  79. SEATINI
  80. SEDRA, Chile
  81. Seed Global Health
  82. Servicios Ecumenios para Reconciliacion y Reconstuccion
  83. Sisters of Charity Federation
  84. Social Justice in Global Development
  85. Society for International Development SID
  86. Stakeholder Forum for a Sustainable Future
  87. Stop the Bleeding Campaign
  88. Success Capital Organisation
  89. The Kvinna till Kvinna Foundation
  90. Third World Network
  91. Tripla Difesa Onlus ODV
  92. UDA LLP
  93. UGANDA DEBT NETWORK
  94. UNISC International
  95. Unite for Climate Action
  96. United Religions Initiative
  97. WaterAid
  98. Wemos
  99. Womankind
  100. Women Coalition for Agenda 2030
  101. World Future Council
  102. World Public Health Nutrition Association
  103. Zamara Foundation

 

NATIONAL ORGANISATIONS

  1. AbibiNsroma Foundation, Ghana
  2. Academic and Career Development Initiative, Cameroon
  3. Africa Development Interchange Network (ADIN), Cameroon
  4. Alliance Sud, Switzerland
  5. Al-Tahreer Association for Development, Iraq
  6. American TelePhysicians, USA
  7. Apostle Padi Ologo Traditional Birth Centre, Ghana
  8. Asociación Ciudadana por los Derechos Humanos, Argentina
  9. Association for Promotion Sustainable Development, India
  10. Association of Rural Education and Development Service, India
  11. Baghdad Women Association, Iraq
  12. Bahrain Transparency
  13. Budget Advocacy Network, Sierra Leone
  14. Catholic Agency for Overseas Development CAFOD, UK
  15. CCFD-Terre Solidaire
  16. CDES, Ecuador
  17. CEDECAM, Nicaragua
  18. Cedetrabajo, Colombia
  19. CEICOM, El Salvador
  20. Center for Economic and Policy Research, CEPR
  21. Centre for Environmental Justice, Sri Lanka
  22. Civil Society SDGs Campaign GCAP Zambia
  23. CLATE/ULATOC/CTA-A, España
  24. Club Ohada Thies, Senegal
  25. CNCD-11.11.11
  26. Comisión Nacional de Enlace
  27. Community Working Group on Health (CWGH), Zimbabwe
  28. Conservation and Development Agency CODEA-CBO, Uganda
  29. Consumer Unity and Trust Society (CUTS), Zambia
  30. Cooperation for Peace and Development (CPD), Afghanistan
  31. Corporación CIASE
  32. Debt Justice Norway
  33. Campaña por la Expresión ciudadana
  34. DSW Kenya
  35. Economic Justice Network Sierra Leone
  36. EMPOWER INDIA
  37. ENVIRONICS TRUST, India
  38. de
  39. Fair Trade Hellas, Greece
  40. Fomento de la Vida- FOVIDA, Peru
  41. Foro Social de Deuda Externa y Desarrollo de Honduras – FOSDEH, Honduras
  42. Forum Solidaridad Perú
  43. Foundation for Environmental Management and CampaignAgainst Poverty, Tanzania
  44. Freedom from Debt Coalition, Philippines
  45. Friends of the Earth US
  46. Fundación Ambiente y Recursos Naturales (FARN)
  47. Fundación Constituyente XXI, Chile
  48. Gatef organizations, Egypt
  49. GCAP El Salvador
  50. GCAP Italia
  51. GCAP Rwanda Coalition
  52. German NGO Forum on Environment and Development
  53. Gestos (soropositividade, comunicação, gênero), Brazil
  54. Global Justice Now
  55. Global Learning for Sustainability, Uganda
  56. Global Responsibility (AG Globale Verantwortung)
  57. GreenTech Foundation, Bangladesh
  58. GreenWatch Dhaka, Bangladesh
  59. Group of Action, Peace and Training for Transformation – GAPAFOT, Central African Republic
  60. GWEN Trust, Zimbabwe
  61. Help Age, India
  62. Institute for Public Policy Research, Namibia
  63. Instituto de Estudos Socioeconomicos, Brazil
  64. Instituto Equit – Genero, Economia e Cidadania Global,Brazil
  65. Instituto Guatemalteco de Economistas, Guatemala
  66. Iraqi center for women rehabilitation & employment, Iraq
  67. Iraqi Institute for the Civil Development(IICD), Iraq
  68. Jubilee Debt Campaign -UK
  69. JUBILEO 2OOO RED ECUADOR
  70. U.L.U.- Women and Developmennt, Denmark
  71. Kathak Academy (KA)
  72. Kulmiye Aid Foundation, Somalia
  73. Lanka Fundamental Rights Organization, Sri Lanka
  74. Marikana youth development organisation, South Africa
  75. Movimiento Tzuk Kim-pop, Guatemala
  76. Myanmar Youth foundation for SDG, Myanmar
  77. National Association of Professional Environmentalists(NAPE), Uganda
  78. National Campaign for Sustainable Development Nepal
  79. National Confederation of Dalit and Adivasi Organisations (NACDAOR), India
  80. National Labour Academy, Nepal
  81. National Society of Conservationists – Friends of the Earth Hungary
  82. NCD Alliance in Georgia
  83. Nepal Development Initiative (NEDI), Nepal
  84. Network of Journalists Living with HIV (JONEHA), Malawi
  85. New Millennium Women Empowerment Organization, Ethiopia
  86. NGO Federation of Nepal
  87. Nkoko Iju Africa, Kenya
  88. Observatorio Mexicano de la Crisis, Mexico
  89. Okoa Uchumi Campaign, Kenya
  90. ONG Cooperación y Desarrollo, Guinea Ecuatorial
  91. ONG Espoir Pour Tous, Côte d’Ivoire
  92. Ong FEED, Niger
  93. ONG PADJENA, Benin
  94. ONG Santé et Action Globale, Togo
  95. Organisation des Femmes Aveugles du Bénin
  96. Pakistan Development Alliance
  97. Pakistan Fisherfolk Forum
  98. Pakistan Fisherfolk Forum
  99. Pakistan Kissan Rabita Committee
  100. Peoples Development Institute, Phillippines
  101. POSCO-Agenda 2030 Senegal
  102. PROGRÈS SOCIAUX, Benin
  103. Rapad Maroc, Morocco
  104. REACHOUT SALONE, Sierra Leone
  105. REBRIP – Rede Brasileira pela Integração dos Povos, Brazil
  106. Recourse, The Netherlands
  107. Red Dot Foundation Global, USA
  108. Red Dot Foundation, India
  109. Red Mexicana de Acción frente al Libre Comercio (RMALC)
  110. RENICC Nicaragua
  111. RIHRDO (Rural Infrastructure and Human Resource Development Organization )
  112. Rural Area Development Programme (RADP), Nepal
  113. Rural Infrastructure and Human Resource development Organization (RIHRDO), Pakistan
  114. SAFE EMPOWERED COMMUNITIES ASSOCIATION ZAMBIA
  115. Sisters of Charity Federation
  116. Social Economic and Governance Promotion Centre, Tanzania
  117. Solidarité des femmes pour le Développement intégral (SOFEDI), R. D. Congo
  118. Somali Youth Development Foundation (SYDF), Somalia
  119. Sorouh for Sustainable Development Foundation-SSDF, Iraq
  120. Stamp Out Poverty
  121. State Employees Federation, Mauritius
  122. SUSTAINABLE DEVELOPMENT COUNCIL, India
  123. SYNAPECOCI, Côte d’Ivoire
  124. Tanzania Coalition on Debt and Development (TCDD)
  125. Tax Justice Network US
  126. The Institute for Social Accountability, Kenya
  127. The Mango Tree, Kenya
  128. The Rural Sector Public Institution CBO and Affiliated Entity’s With Multiple Distinct Components, Bangladesh
  129. Toto Centre Initiative, Kenya
  130. Treat Every Environment Special Sdn Bhd, Malaysia
  131. Uganda Peace Foundation
  132. UIMS, Iraq
  133. UndebtedWorld, Greece
  134. Union des Amis Socio Culturels d’Action en Developpement (UNASCAD), Haiti
  135. Uso Inteligente ASV A.C., México
  136. VEILLE CITOYENNE TOGO
  137. Wada Na Todo Abhiyan, India
  138. WEED – World Economy, Ecology & Development e.V.
  139. Western Kenya LBQT Feminist Forum (Lets Be Tested Queens CBO)
  140. WIPGG Nigeria
  141. WomanHealth Philippines
  142. Women in Democracy and Governance (WIDAG), Kenya
  143. Working With Women, Cameroun
  144. WREPA, Kenya
  145. Za Zemiata, Friends of the Earth Bulgaria
  146. Zukunftskonvent Germany
  147. منظمة حواد للاغاثة والتنمية

 

ACADEMICS / RESEARCHERS

  1. Ahmad Mahdavi, University of Tehran/ and Sustainable agriculture and environment
  2. Albert Gyan, Social Advocate (African Diaspora)
  3. Annina Kaltenbrunner, Leeds University Business School UK
  4. Brenda Awuor Odongo, Researcher on SRHR and Reproductive health
  5. Claudio Schuftan, Researcher on human rights
  6. Daniel Bradlow, Professor of Law at American University Washington College of Law
  7. Daniel Ortega-Pacheco, Center for Public Policy Development, ESPOL Polytechnic University, Ecuador
  8. Adamu Abdullazeez Bako, Centre for Citizens Rights
  9. Elisa Van Waeyenberge, SOAS University of London
  10. Frances Stewart, University of Oxford
  11. Gabriele Koehler, Researcher on 2030 Agenda eco-eco-social state, Germany
  12. Gerry Helleiner, Prof. emeritus, Economics, University of Toronto
  13. Grupo de Investigación en Derechos Colectivos y Ambientales GIDCA, Universidad Nacional de Colombia
  14. Ilene Grabel, Distinguished University Professor, Josef Korbel School of International Studies
  15. Jorge Manuel Gil, Cátedra libre pensamiento latinoamericano, UNPSJB
  16. Kevin P Gallagher, Global Development Policy Center, Boston University, USA
  17. Lena Dominelli, University of Southampton, UK
  18. María José Lubertino Beltrán, Profesora de Derechos Humanos, Universidad de Buenos Aires
  19. Martin S. Edwards, Seton Hall University, School of Diplomacy and International Relations
  20. Matthew Martin, Development Finance International
  21. Michel Aglietta, emeritus professor in economics, Centre for Prospective Studies and International Information CEPII
  22. Nora Fernández Mora, Pontificia Universidad Católica del Ecuador
  23. Oscar Ugarteche, Instituto de Investigaciones Económicas, México
  24. Remco van de Pas, Researcher on public health at ITM
  25. Rick Rowden, Lecturer, American University in Washington DC
  26. Rungani Aaron, Researcher, Zimbabwe
  27. Sandra Janice Misiribi, Good Health Community Project
  28. Shem Atuya Ayiera, ST. HEMMINGWAYS NGO
  29. Spyros Marchetos, Aristotle University of Thessaloniki, Greece
  30. Viktor Chistyakov, Columbia University