Civil Society Organizations Call for Principles for Fair Channeling of Special Drawing Rights
Open Letter to G20 Finance Ministers, Central Bank Governors and the IMF
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.
Read this letter in Spanish and Arabic
SIGNATORIES
Regional/Global Organizations
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. Development Alternatives with Women for a New Era (DAWN)
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 Organizations
104. AbibiNsroma Foundation, Ghana
105. Academic and Career Development Initiative, Cameroon
106. Africa Development Interchange Network (ADIN), Cameroon
107. Alliance Sud, Switzerland
108. Al-Tahreer Association for Development, Iraq
109. American TelePhysicians, USA
110. Apostle Padi Ologo Traditional Birth Centre, Ghana
111. Asociación Ciudadana por los Derechos Humanos, Argentina
112. Association for Promotion Sustainable Development, India
113. Association of Rural Education and Development Service, India
114. Baghdad Women Association, Iraq
115. Bahrain Transparency
116. Budget Advocacy Network, Sierra Leone
117. Catholic Agency for Overseas Development CAFOD, UK
118. CCFD-Terre Solidaire
119. CDES, Ecuador
120. CEDECAM, Nicaragua
121. Cedetrabajo, Colombia
122. CEICOM, El Salvador
123. Center for Economic and Policy Research (CEPR)
124. Centre for Environmental Justice, Sri Lanka
125. Civil Society SDGs Campaign GCAP Zambia
126. CLATE/ULATOC/CTA-A, España
127. Club Ohada Thies, Senegal
128. CNCD-11.11.11
129. Comisión Nacional de Enlace
130. Community Working Group on Health (CWGH), Zimbabwe
131. Conservation and Development Agency CODEA-CBO, Uganda
132. Consumer Unity and Trust Society (CUTS), Zambia
133. Cooperation for Peace and Development (CPD), Afghanistan
134. Corporación CIASE
135. Debt Justice Norway
136. DECIDAMOS. Campaña por la Expresión ciudadana
137. DSW Kenya
138. Economic Justice Network Sierra Leone
139. EMPOWER INDIA
140. ENVIRONICS TRUST, India
141. erlassjahr.de
142. Fair Trade Hellas, Greece
143. Fomento de la Vida- FOVIDA, Peru
144. Foro Social de Deuda Externa y Desarrollo de Honduras (FOSDEH), Honduras
145. Forum Solidaridad Perú
146. Foundation for Environmental Management and Campaign Against Poverty, Tanzania
147. Freedom from Debt Coalition, Philippines
148. Friends of the Earth US
149. Fundación Ambiente y Recursos Naturales (FARN)
150. Fundación Constituyente XXI, Chile
151. Gatef organizations, Egypt
152. GCAP El Salvador
153. GCAP Italia
154. GCAP Rwanda Coalition
155. German NGO Forum on Environment and Development
156. Gestos (soropositividade, comunicação, gênero), Brazil
157. Global Justice Now
158. Global Learning for Sustainability, Uganda
159. Global Responsibility (AG Globale Verantwortung)
160. GreenTech Foundation, Bangladesh
161. GreenWatch Dhaka, Bangladesh
162. Group of Action, Peace and Training for Transformation (GAPAFOT), Central African Republic
163. GWEN Trust, Zimbabwe
164. Help Age, India
165. Institute for Public Policy Research, Namibia
166. Instituto de Estudos Socioeconomicos, Brazil
167. Instituto Equit — Genero, Economia e Cidadania Global, Brazil
168. Instituto Guatemalteco de Economistas, Guatemala
169. Iraqi Center for Women Rehabilitation & Employment, Iraq
170. Iraqi Institute for the Civil Development (IICD), Iraq
171. Jubilee Debt Campaign -UK
172. JUBILEO 2OOO RED ECUADOR
173. K.U.L.U.- Women and Development, Denmark
174. Kathak Academy (KA)
175. Kulmiye Aid Foundation, Somalia
176. Lanka Fundamental Rights Organization, Sri Lanka
177. Marikana youth development organisation, South Africa
178. Movimiento Tzuk Kim-pop, Guatemala
179. Myanmar Youth foundation for SDG, Myanmar
180. National Association of Professional Environmentalists (NAPE), Uganda
181. National Campaign for Sustainable Development Nepal
182. National Confederation of Dalit and Adivasi Organisations (NACDAOR), India
183. National Labour Academy, Nepal
184. National Society of Conservationists — Friends of the Earth Hungary
185. NCD Alliance in Georgia
186. Nepal Development Initiative (NEDI), Nepal
187. Network of Journalists Living with HIV (JONEHA), Malawi
188. New Millennium Women Empowerment Organization, Ethiopia
189. NGO Federation of Nepal
190. Nkoko Iju Africa, Kenya
191. Observatorio Mexicano de la Crisis, Mexico
192. Okoa Uchumi Campaign, Kenya
193. ONG Cooperación y Desarrollo, Guinea Ecuatorial
194. ONG Espoir Pour Tous, Côte d’Ivoire
195. Ong FEED, Niger
196. ONG PADJENA, Benin
197. ONG Santé et Action Globale, Togo
198. Organisation des Femmes Aveugles du Bénin
199. Pakistan Development Alliance
200. Pakistan Fisherfolk Forum
201. Pakistan Fisherfolk Forum
202. Pakistan Kissan Rabita Committee
203. Peoples Development Institute, Philippines
204. POSCO-Agenda 2030 Senegal
205. PROGRÈS SOCIAUX, Benin
206. Rapad Maroc, Morocco
207. REACHOUT SALONE, Sierra Leone
208. REBRIP — Rede Brasileira pela Integração dos Povos, Brazil
209. Recourse, The Netherlands
210. Red Dot Foundation Global, USA
211. Red Dot Foundation, India
212. Red Mexicana de Acción frente al Libre Comercio (RMALC)
213. RENICC Nicaragua
214. RIHRDO (Rural Infrastructure and Human Resource Development Organization)
215. Rural Area Development Programme (RADP), Nepal
216. Rural Infrastructure and Human Resource development Organization (RIHRDO), Pakistan
217. SAFE EMPOWERED COMMUNITIES ASSOCIATION ZAMBIA
218. Sisters of Charity Federation
219. Social Economic and Governance Promotion Centre, Tanzania
220. Solidarité des femmes pour le Développement intégral (SOFEDI), R. D. Congo
221. Somali Youth Development Foundation (SYDF), Somalia
222. Sorouh for Sustainable Development Foundation (SSDF), Iraq
223. Stamp Out Poverty
224. State Employees Federation, Mauritius
225. SUSTAINABLE DEVELOPMENT COUNCIL, India
226. SYNAPECOCI, Côte d’Ivoire
227. Tanzania Coalition on Debt and Development (TCDD)
228. Tax Justice Network US
229. The Institute for Social Accountability, Kenya
230. The Mango Tree, Kenya
231. The Rural Sector Public Institution CBO and Affiliated Entity’s With Multiple Distinct Components, Bangladesh
232. Toto Centre Initiative, Kenya
233. Treat Every Environment Special Sdn Bhd, Malaysia
234. Uganda Peace Foundation
235. UIMS, Iraq
236. UndebtedWorld, Greece
237. Union des Amis Socio Culturels d’Action en Developpement (UNASCAD), Haiti
238. Uso Inteligente ASV A.C., México
239. VEILLE CITOYENNE TOGO
240. Wada Na Todo Abhiyan, India
241. World Economy, Ecology & Development e.V. (WEED)
242. Western Kenya LBQT Feminist Forum (Lets Be Tested Queens CBO)
243. WIPGG Nigeria
244. WomanHealth Philippines
245. Women in Democracy and Governance (WIDAG), Kenya
246. Working With Women, Cameron
247. WREPA, Kenya
248. Za Zemiata, Friends of the Earth Bulgaria
249. Zukunftskonvent Germany
250. Hawad Organization for Relief and Development
Academics/Researchers
251. Ahmad Mahdavi, University of Tehran/Sustainable agriculture and
environment
252. Albert Gyan, Social Advocate (African Diaspora)
253. Annina Kaltenbrunner, Leeds University Business School UK
254. Brenda Awuor Odongo, Researcher on SRHR and Reproductive health
255. Claudio Schuftan, Researcher on human rights
256. Daniel Bradlow, Professor of Law at American University Washington College of Law
257. Daniel Ortega-Pacheco, Center for Public Policy Development, ESPOL
Polytechnic University, Ecuador
258. Dr. Adamu Abdullazeez Bako, Centre for Citizens Rights
259. Elisa Van Waeyenberge, SOAS University of London
260. Frances Stewart, University of Oxford
261. Gabriele Koehler, Researcher on 2030 Agenda eco-eco-social state, Germany
262. Gerry Helleiner, Prof. emeritus, Economics, University of Toronto
263. Grupo de Investigación en Derechos Colectivos y Ambientales GIDCA,
Universidad Nacional de Colombia
264. Ilene Grabel, Distinguished University Professor, Josef Korbel School of
International Studies
265. Jorge Manuel Gil, Cátedra libre pensamiento latinoamericano, UNPSJB
266. Kevin P Gallagher, Global Development Policy Center, Boston University, USA
267. Lena Dominelli, University of Southampton, UK
268. María José Lubertino Beltrán, Profesora de Derechos Humanos, Universidad de Buenos Aires
269. Martin S. Edwards, Seton Hall University, School of Diplomacy and International Relations
270. Matthew Martin, Development Finance International
271. Michel Aglietta, emeritus professor in economics, Centre for Prospective Studies and International Information CEPII
272. Nora Fernández Mora, Pontificia Universidad Católica del Ecuador
273. Oscar Ugarteche, Instituto de Investigaciones Económicas, México
274. Remco van de Pas, Researcher on public health at ITM
275. Rick Rowden, Lecturer, American University in Washington DC
276. Rungani Aaron, Researcher, Zimbabwe
277. Sandra Janice Misiribi, Good Health Community Project
278. Shem Atuya Ayiera, ST. HEMMINGWAYS NGO
279. Spyros Marchetos, Aristotle University of Thessaloniki, Greece
280. Viktor Chistyakov, Columbia University
