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:

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.

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