IMF’s new report looking at the impact of the $650 billion SDR allocation in 2021 talks about the benefits of the allocation for the global economy but fails to address the scale of the polycrisis.
Special Drawing Rights (SDRs)
Briefing examines the shortcomings of the current SDRs allocation system and calls to reform SDRs to ensure their targeted, needs-based and equitable distribution.
New calls for SDR reform reveal acute need of financing for low- and middle-income countries to achieve the Sustainable Development Goals.
This Inside the Institutions looks at the IMF’s Special Drawing Rights, including their history and usage, with a focus on the latest allocation, which accounts for 69 per cent of the SDRs ever disbursed.
The links between high debt burdens, lack of climate finance, austerity and the rise in political instability and fragility, conflict and violence remain largely neglected as IMF shareholders consider calls for a new SDR allocation, as proposed by the Bridgetown Agenda.
Notes from the 11 April Civil Society Policy Forum - The IMF’s Resilience and Sustainability Trust: Can an IMF-managed SDRs trust deliver inclusive & sustainable recoveries?
If the Special Drawing Rights allocation is to benefit the poorest and most vulnerable, decision makers must use SDRs to respond to the pandemic and its economic consequences.
On 23 August, the IMF finalised the allocation of $650 billion worth of SDRs to its member states. CSOs outline in a joint statement how the UK should seize this opportunity.
Renewed calls for a substantial SDR allocation raise urgency of reforming the inequitable global reserve ‘non-system’.