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:
- 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).
- 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.
- 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.
- 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.
- 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.
- 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
- Access to Human Rights International AHRI
- Action Aid International
- ACTIONS PLURIELLES
- Advocacy Initiative for Development (AID)
- Africa Network for Environment and Economic Justice(ANEEJ)
- African Forum and Network on Debt and Development AFRODAD
- African Women’s Development and Communication Network(FEMNET)
- AidWatch Canada
- Alliance for Sustainable Development Organization (ASDO)
- Arab Watch Coalition
- Associated Country Women of the World
- Association Biowa
- AULA TIDEs UN SDGs Action Education & Programming
- Blue Ridge Impact Consulting
- Both ENDS
- Bretton Woods Project
- Burundi Rugby League Rugby a XIII Cooperative, Central & East Africa
- Campaign for Human Rights and Development International CHRDI, Sierra Leone West Africa
- Campaña Latinoamericana por el Derecho a la Educación (CLADE)
- Candid Concepts Development
- Caritas Ghana
- Center for Economic and Social Rights (CESR)
- Christian Aid
- Civil Society Action Coalition on Education for All
- Coalition for Health Workers (HRH PLUS)
- Confederation of Indonesia People Movement (KPRI)
- Coordinadora de Organizaciones de Desarrollo
- DAWN (Development Alternatives with Women for a New Era)
- Derecho Ambiente y Recursos Naturales DAR
- Development Alternatives
- Diverse Voices and Action (DIVA) for Equality
- Ekumenická akademie (Ecumenical Academy)
- Equidad de Género: Ciudadanía, Trabajo y Familia
- Estonian Roundtable for Development Cooperation
- European Network on Debt and Development EURODAD
- Feminist Task Force
- FENASSEP/ISP, SINERGIE DES TRAVAILLEURS DU TOGO/STT
- Fight Inequality Alliance
- Fight Inequality Alliance, Asia
- Financial Transparency Coalition
- FOKUS – Forum for Women and Development
- Fundacion para Estudio e Investigacion de la Mujer
- Fundación para la Democracia Internacional
- Fundacion SES
- Gender and Development Network
- Génération Maastricht
- Geneva Finance Observatory
- Global Campaign for Education
- Global Coalition Against Poverty GCAP
- Global Policy Forum
- Global Socio-economic and Financial Evolution Network (GSFEN)
- Global Youth Online Union
- Health Action International Asia Pacific
- Indigenous Peoples Global Forum for Sustainable Development, (International Indegeous Platforme)
- Institute for Economic Justice
- Institute of the Blessed Virgin Mary – Loreto Generalate
- Internacional de Servicios Públicos (ISP)
- International Council for Adult Education
- International Women’s Rights Action Watch Asia Pacific (IWRAW Asia Pacific)
- Jubilee Debt Campaign
- Jubilee USA Network
- Ladies of Great Decorum
- Latin American Network for Economic and Social Rights -LATINDADD
- Latinoamérica Sustentable
- Medicus Mundi Mediterrània
- Medicusmundi spain
- Missionary Oblates of Mary Immaculate
- Mumahhid Family of Greater Jerusalem
- MY World Mexico
- NGO CSW LAC
- Okogun Odigie Safewomb International Foundation (OOSAIF)
- OXFAM
- Plateforme française Dette et Développement (PFDD)
- Red de Justicia Fiscal para América Latina y El Caribe RJFALC
- Regions Refocus
- RIPESS
- SAUDI GREEN BUILDING FORUM
- Save the Children
- SEATINI
- SEDRA, Chile
- Seed Global Health
- Servicios Ecumenios para Reconciliacion y Reconstuccion
- Sisters of Charity Federation
- Social Justice in Global Development
- Society for International Development SID
- Stakeholder Forum for a Sustainable Future
- Stop the Bleeding Campaign
- Success Capital Organisation
- The Kvinna till Kvinna Foundation
- Third World Network
- Tripla Difesa Onlus ODV
- UDA LLP
- UGANDA DEBT NETWORK
- UNISC International
- Unite for Climate Action
- United Religions Initiative
- WaterAid
- Wemos
- Womankind
- Women Coalition for Agenda 2030
- World Future Council
- World Public Health Nutrition Association
- Zamara Foundation
NATIONAL ORGANISATIONS
- AbibiNsroma Foundation, Ghana
- Academic and Career Development Initiative, Cameroon
- Africa Development Interchange Network (ADIN), Cameroon
- Alliance Sud, Switzerland
- Al-Tahreer Association for Development, Iraq
- American TelePhysicians, USA
- Apostle Padi Ologo Traditional Birth Centre, Ghana
- Asociación Ciudadana por los Derechos Humanos, Argentina
- Association for Promotion Sustainable Development, India
- Association of Rural Education and Development Service, India
- Baghdad Women Association, Iraq
- Bahrain Transparency
- Budget Advocacy Network, Sierra Leone
- Catholic Agency for Overseas Development CAFOD, UK
- CCFD-Terre Solidaire
- CDES, Ecuador
- CEDECAM, Nicaragua
- Cedetrabajo, Colombia
- CEICOM, El Salvador
- Center for Economic and Policy Research, CEPR
- Centre for Environmental Justice, Sri Lanka
- Civil Society SDGs Campaign GCAP Zambia
- CLATE/ULATOC/CTA-A, España
- Club Ohada Thies, Senegal
- CNCD-11.11.11
- Comisión Nacional de Enlace
- Community Working Group on Health (CWGH), Zimbabwe
- Conservation and Development Agency CODEA-CBO, Uganda
- Consumer Unity and Trust Society (CUTS), Zambia
- Cooperation for Peace and Development (CPD), Afghanistan
- Corporación CIASE
- Debt Justice Norway
- Campaña por la Expresión ciudadana
- DSW Kenya
- Economic Justice Network Sierra Leone
- EMPOWER INDIA
- ENVIRONICS TRUST, India
- de
- Fair Trade Hellas, Greece
- Fomento de la Vida- FOVIDA, Peru
- Foro Social de Deuda Externa y Desarrollo de Honduras – FOSDEH, Honduras
- Forum Solidaridad Perú
- Foundation for Environmental Management and CampaignAgainst Poverty, Tanzania
- Freedom from Debt Coalition, Philippines
- Friends of the Earth US
- Fundación Ambiente y Recursos Naturales (FARN)
- Fundación Constituyente XXI, Chile
- Gatef organizations, Egypt
- GCAP El Salvador
- GCAP Italia
- GCAP Rwanda Coalition
- German NGO Forum on Environment and Development
- Gestos (soropositividade, comunicação, gênero), Brazil
- Global Justice Now
- Global Learning for Sustainability, Uganda
- Global Responsibility (AG Globale Verantwortung)
- GreenTech Foundation, Bangladesh
- GreenWatch Dhaka, Bangladesh
- Group of Action, Peace and Training for Transformation – GAPAFOT, Central African Republic
- GWEN Trust, Zimbabwe
- Help Age, India
- Institute for Public Policy Research, Namibia
- Instituto de Estudos Socioeconomicos, Brazil
- Instituto Equit – Genero, Economia e Cidadania Global,Brazil
- Instituto Guatemalteco de Economistas, Guatemala
- Iraqi center for women rehabilitation & employment, Iraq
- Iraqi Institute for the Civil Development(IICD), Iraq
- Jubilee Debt Campaign -UK
- JUBILEO 2OOO RED ECUADOR
- U.L.U.- Women and Developmennt, Denmark
- Kathak Academy (KA)
- Kulmiye Aid Foundation, Somalia
- Lanka Fundamental Rights Organization, Sri Lanka
- Marikana youth development organisation, South Africa
- Movimiento Tzuk Kim-pop, Guatemala
- Myanmar Youth foundation for SDG, Myanmar
- National Association of Professional Environmentalists(NAPE), Uganda
- National Campaign for Sustainable Development Nepal
- National Confederation of Dalit and Adivasi Organisations (NACDAOR), India
- National Labour Academy, Nepal
- National Society of Conservationists – Friends of the Earth Hungary
- NCD Alliance in Georgia
- Nepal Development Initiative (NEDI), Nepal
- Network of Journalists Living with HIV (JONEHA), Malawi
- New Millennium Women Empowerment Organization, Ethiopia
- NGO Federation of Nepal
- Nkoko Iju Africa, Kenya
- Observatorio Mexicano de la Crisis, Mexico
- Okoa Uchumi Campaign, Kenya
- ONG Cooperación y Desarrollo, Guinea Ecuatorial
- ONG Espoir Pour Tous, Côte d’Ivoire
- Ong FEED, Niger
- ONG PADJENA, Benin
- ONG Santé et Action Globale, Togo
- Organisation des Femmes Aveugles du Bénin
- Pakistan Development Alliance
- Pakistan Fisherfolk Forum
- Pakistan Fisherfolk Forum
- Pakistan Kissan Rabita Committee
- Peoples Development Institute, Phillippines
- POSCO-Agenda 2030 Senegal
- PROGRÈS SOCIAUX, Benin
- Rapad Maroc, Morocco
- REACHOUT SALONE, Sierra Leone
- REBRIP – Rede Brasileira pela Integração dos Povos, Brazil
- Recourse, The Netherlands
- Red Dot Foundation Global, USA
- Red Dot Foundation, India
- Red Mexicana de Acción frente al Libre Comercio (RMALC)
- RENICC Nicaragua
- RIHRDO (Rural Infrastructure and Human Resource Development Organization )
- Rural Area Development Programme (RADP), Nepal
- Rural Infrastructure and Human Resource development Organization (RIHRDO), Pakistan
- SAFE EMPOWERED COMMUNITIES ASSOCIATION ZAMBIA
- Sisters of Charity Federation
- Social Economic and Governance Promotion Centre, Tanzania
- Solidarité des femmes pour le Développement intégral (SOFEDI), R. D. Congo
- Somali Youth Development Foundation (SYDF), Somalia
- Sorouh for Sustainable Development Foundation-SSDF, Iraq
- Stamp Out Poverty
- State Employees Federation, Mauritius
- SUSTAINABLE DEVELOPMENT COUNCIL, India
- SYNAPECOCI, Côte d’Ivoire
- Tanzania Coalition on Debt and Development (TCDD)
- Tax Justice Network US
- The Institute for Social Accountability, Kenya
- The Mango Tree, Kenya
- The Rural Sector Public Institution CBO and Affiliated Entity’s With Multiple Distinct Components, Bangladesh
- Toto Centre Initiative, Kenya
- Treat Every Environment Special Sdn Bhd, Malaysia
- Uganda Peace Foundation
- UIMS, Iraq
- UndebtedWorld, Greece
- Union des Amis Socio Culturels d’Action en Developpement (UNASCAD), Haiti
- Uso Inteligente ASV A.C., México
- VEILLE CITOYENNE TOGO
- Wada Na Todo Abhiyan, India
- WEED – World Economy, Ecology & Development e.V.
- Western Kenya LBQT Feminist Forum (Lets Be Tested Queens CBO)
- WIPGG Nigeria
- WomanHealth Philippines
- Women in Democracy and Governance (WIDAG), Kenya
- Working With Women, Cameroun
- WREPA, Kenya
- Za Zemiata, Friends of the Earth Bulgaria
- Zukunftskonvent Germany
- منظمة حواد للاغاثة والتنمية
ACADEMICS / RESEARCHERS
- Ahmad Mahdavi, University of Tehran/ and Sustainable agriculture and environment
- Albert Gyan, Social Advocate (African Diaspora)
- Annina Kaltenbrunner, Leeds University Business School UK
- Brenda Awuor Odongo, Researcher on SRHR and Reproductive health
- Claudio Schuftan, Researcher on human rights
- Daniel Bradlow, Professor of Law at American University Washington College of Law
- Daniel Ortega-Pacheco, Center for Public Policy Development, ESPOL Polytechnic University, Ecuador
- Adamu Abdullazeez Bako, Centre for Citizens Rights
- Elisa Van Waeyenberge, SOAS University of London
- Frances Stewart, University of Oxford
- Gabriele Koehler, Researcher on 2030 Agenda eco-eco-social state, Germany
- Gerry Helleiner, Prof. emeritus, Economics, University of Toronto
- Grupo de Investigación en Derechos Colectivos y Ambientales GIDCA, Universidad Nacional de Colombia
- Ilene Grabel, Distinguished University Professor, Josef Korbel School of International Studies
- Jorge Manuel Gil, Cátedra libre pensamiento latinoamericano, UNPSJB
- Kevin P Gallagher, Global Development Policy Center, Boston University, USA
- Lena Dominelli, University of Southampton, UK
- María José Lubertino Beltrán, Profesora de Derechos Humanos, Universidad de Buenos Aires
- Martin S. Edwards, Seton Hall University, School of Diplomacy and International Relations
- Matthew Martin, Development Finance International
- Michel Aglietta, emeritus professor in economics, Centre for Prospective Studies and International Information CEPII
- Nora Fernández Mora, Pontificia Universidad Católica del Ecuador
- Oscar Ugarteche, Instituto de Investigaciones Económicas, México
- Remco van de Pas, Researcher on public health at ITM
- Rick Rowden, Lecturer, American University in Washington DC
- Rungani Aaron, Researcher, Zimbabwe
- Sandra Janice Misiribi, Good Health Community Project
- Shem Atuya Ayiera, ST. HEMMINGWAYS NGO
- Spyros Marchetos, Aristotle University of Thessaloniki, Greece
- Viktor Chistyakov, Columbia University
