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Civil Society Organisations Call for Principles for Fair Channeling of Special Drawing Rights

30th September, 2021

Fight Inequality Alliance has joined over 280 other groups to write an 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 con- sider 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.

September 30th, 2021

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. FEMNET
  38. FENASSEP/ISP, SINERGIE DES TRAVAILLEURS DU TOGO/STT
  39. Fight Inequality Alliance
  40. Fight Inequality Alliance, Asia
  41. Financial Transparency Coalition
  42. FOKUS - Forum for Women and Development
  43. Fundacion para Estudio e Investigacion de la Mujer
  44. Fundación para la Democracia Internacional
  45. Fundacion SES
  46. Gender and Development Network
  47. Génération Maastricht
  48. Geneva Finance Observatory
  49. Global Campaign for Education
  50. Global Coalition Against Poverty GCAP
  51. Global Policy Forum
  52. Global Socio-economic and Financial Evolution Network (GSFEN)
  53. Global Youth Online Union
  54. Health Action International Asia Pacific
  55. Indigenous Peoples Global Forum for Sustainable Development, (International Indegeous Platforme)
  56. Institute for Economic Justice
  57. Institute of the Blessed Virgin Mary - Loreto Generalate
  58. Internacional de Servicios Públicos (ISP)
  59. International Council for Adult Education
  60. International Women’s Rights Action Watch Asia Pacific (IWRAW Asia Pacific)
  61. Jubilee Debt Campaign
  62. Jubilee USA Network
  63. Ladies of Great Decorum
  64. Latin American Network for Economic and Social Rights -LATINDADD
  65. Latinoamérica Sustentable
  66. Medicus Mundi Mediterrània
  67. Medicusmundi spain
  68. Missionary Oblates of Mary Immaculate
  69. Mumahhid Family of Greater Jerusalem
  70. MY World Mexico
  71. NGO CSW LAC
  72. Okogun Odigie Safewomb International Foundation (OOSAIF)
  73. OXFAM
  74. Plateforme française Dette et Développement (PFDD)
  75. Red de Justicia Fiscal para América Latina y El Caribe RJFALC
  76. Regions Refocus
  77. RIPESS
  78. SAUDI GREEN BUILDING FORUM
  79. Save the Children
  80. SEATINI
  81. SEDRA, Chile
  82. Seed Global Health
  83. Servicios Ecumenios para Reconciliacion y Reconstuccion
  84. Sisters of Charity Federation
  85. Social Justice in Global Development
  86. Society for International Development SID
  87. Stakeholder Forum for a Sustainable Future
  88. Stop the Bleeding Campaign
  89. Success Capital Organisation
  90. The Kvinna till Kvinna Foundation
  91. Third World Network
  92. Tripla Difesa Onlus ODV
  93. UDA LLP
  94. UGANDA DEBT NETWORK
  95. UNISC International
  96. Unite for Climate Action
  97. United Religions Initiative
  98. WaterAid
  99. Wemos
  100. Womankind
  101. Women Coalition for Agenda 2030
  102. World Future Council
  103. World Public Health Nutrition Association
  104. 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. CEDECAM, Nicaragua
  17. Cedetrabajo, Colombia
  18. CEICOM, El Salvador
  19. Center for Economic and Policy Research, CEPR
  20. Centre for Environmental Justice, Sri Lanka
  21. Civil Society SDGs Campaign GCAP Zambia
  22. CLATE/ULATOC/CTA-A, España
  23. Club Ohada Thies, Senegal 128.      CNCD-11.11.11
  24. Comisión Nacional de Enlace
  25. Community Working Group on Health (CWGH), Zimbabwe
  26. Conservation and Development Agency CODEA-CBO, Uganda
  27. Consumer Unity and Trust Society (CUTS), Zambia
  28. Cooperation for Peace and Development (CPD), Afghanistan
  29. Corporación CIASE
  30. Debt Justice Norway
  31. DECIDAMOS. Campaña por la Expresión ciudadana
  32. DSW Kenya
  33. Economic Justice Network Sierra Leone
  34. EMPOWER INDIA
  35. ENVIRONICS TRUST, India
  36. erlassjahr.de
  37. Fair Trade Hellas, Greece
  38. Fomento de la Vida- FOVIDA, Peru
  39. Foro Social de Deuda Externa y Desarrollo de Honduras - FOSDEH, Honduras
  40. Forum Solidaridad Pe
  41. Foundation for Environmental Management and CampaignAgainst Poverty, Tanzania
  42. Freedom from Debt Coalition, Philippines
  43. Friends of the Earth US
  44. Fundación Ambiente y Recursos Naturales (FARN)
  45. Fundación Constituyente XXI, Chile
  46. Gatef organizations, Egypt
  47. GCAP El Salvador
  48. GCAP Italia
  49. GCAP Rwanda Coalition
  50. German NGO Forum on Environment and Development
  51. Gestos (soropositividade, comunicação, gênero), Brazil
  52. Global Justice Now
  53. Global Learning for Sustainability, Uganda
  54. Global Responsibility (AG Globale Verantwortung)
  55. GreenTech Foundation, Bangladesh
  56. GreenWatch Dhaka, Bangladesh
  57. Group of Action, Peace and Training for Transformation - GAPAFOT, Central African Republic
  58. GWEN Trust, Zimbabwe
  59. Help Age, India
  60. Institute for Public Policy Research, Namibia
  61. Instituto de Estudos Socioeconomicos, Brazil
  62. Instituto Equit - Genero, Economia e Cidadania Global,Brazil
  63. Instituto Guatemalteco de Economistas, Guatemala
  64. Iraqi center for women rehabilitation & employment, Iraq
  65. Iraqi Institute for the Civil Development(IICD), Iraq
  66. Jubilee Debt Campaign -UK
  67. JUBILEO 2OOO RED ECUADOR
  68. K.U.L.U.- Women and Developmennt, Denmark
  69. Kathak Academy (KA)
  70. Kulmiye Aid Foundation, Somalia
  71. Lanka Fundamental Rights Organization, Sri Lanka
  72. Marikana youth development organisation, South Africa
  73. Movimiento Tzuk Kim-pop, Guatemala
  74. Myanmar Youth foundation for SDG, Myanmar
  75. National Association of Professional Environmentalists(NAPE), Uganda
  76. National Campaign for Sustainable Development Nepal
  77. National Confederation of Dalit and Adivasi Organisations (NACDAOR), India
  78. National Labour Academy, Nepal
  79. National Society of Conservationists - Friends of the Earth Hungary
  80. NCD Alliance in Georgia
  81. Nepal Development Initiative (NEDI), Nepal
  82. Network of Journalists Living with HIV (JONEHA), Malawi
  83. New Millennium Women Empowerment Organization, Ethiopia
  84. NGO Federation of Nepal
  85. Nkoko Iju Africa, Kenya
  86. Okoa Uchumi Campaign, Kenya
  87. ONG Cooperación y Desarrollo, Guinea Ecuatorial
  88. ONG Espoir Pour Tous, Côte d’Ivoire
  89. Ong FEED, Niger
  90. ONG PADJENA, Benin
  91. ONG Santé et Action Globale, Togo
  92. Organisation des Femmes Aveugles du Bénin
  93. Pakistan Development Alliance
  94. Pakistan Fisherfolk Forum
  95. Pakistan Fisherfolk Forum
  96. Pakistan Kissan Rabita Committee
  97. Peoples Development Institute, Phillippines
  98. POSCO-Agenda 2030 Senegal
  99. PROGRÈS SOCIAUX, Benin
  100. Rapad Maroc, Morocco
  101. REACHOUT SALONE, Sierra Leone
  102. REBRIP - Rede Brasileira pela Integração dos Povos, Brazil
  103. Recourse, The Netherlands
  104. Red Dot Foundation Global, USA
  105. Red Dot Foundation, India
  106. Red Mexicana de Acción frente al Libre Comercio (RMALC)
  107. RENICC Nicaragua
  108. RIHRDO (Rural Infrastructure and Human Resource Development Organization )
  109. Rural Area Development Programme (RADP), Nepal
  110. Rural Infrastructure and Human Resource development Organization (RIHRDO), Pakistan
  111. SAFE EMPOWERED COMMUNITIES ASSOCIATION ZAMBIA
  112. Sisters of Charity Federation
  113. Social Economic and Governance Promotion Centre, Tanzania
  114. Solidarité des femmes pour le Développement intégral (SOFEDI), R. D. Congo
  115. Somali Youth Development Foundation (SYDF), Somalia
  116. Sorouh for Sustainable Development Foundation-SSDF, Iraq
  117. Stamp Out Poverty
  118. State Employees Federation, Mauritius
  119. SUSTAINABLE DEVELOPMENT COUNCIL, India
  120. SYNAPECOCI, Côte d’Ivoire
  121. Tanzania Coalition on Debt and Development (TCDD)
  122. Tax Justice Network US
  123. The Institute for Social Accountability, Kenya
  124. The Mango Tree, Kenya
  125. The Rural Sector Public Institution CBO and Affiliated Entity’s With Multiple Distinct Components, Bangladesh
  126. Toto Centre Initiative, Kenya
  127. Treat Every Environment Special Sdn Bhd, Malaysia
  128. Uganda Peace Foundation
  129. UIMS, Iraq
  130. UndebtedWorld, Greece
  131. Union des Amis Socio Culturels d’Action en Developpement (UNASCAD), Haiti
  132. Uso Inteligente ASV A.C., México
  133. VEILLE CITOYENNE TOGO
  134. Wada Na Todo Abhiyan, India
  135. WEED - World Economy, Ecology & Development e.V.
  136. Western Kenya LBQT Feminist Forum (Lets Be Tested Queens CBO)
  137. WIPGG Nigeria
  138. WomanHealth Philippines
  139. Women in Democracy and Governance (WIDAG), Kenya
  140. Working With Women, Cameroun
  141. WREPA, Kenya
  142. Za zemiata, Bulgaria
  143. Za Zemiata, Friends of the Earth Bulgaria
  144. Zukunftskonvent Germany
  145. Hawad Organization for Relief and Development

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. Dr. 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

  1. Matthew Martin, Development Finance International
  2. Michel Aglietta, emeritus professor in economics, Centre for Prospective Studies and International Information CEPII
  3. Nora Fernández Mora, Pontificia Universidad Católica del Ecuador
  4. Oscar Ugarteche, Instituto de Investigaciones Económicas, México
  5. Remco van de Pas, Researcher on public health at ITM
  6. Rick Rowden, Lecturer, American University in Washington DC
  7. Rungani Aaron, Researcher, Zimbabwe
  8. Sandra Janice Misiribi, Good Health Community Project
  9. Shem Atuya Ayiera, ST. HEMMINGWAYS NGO
  10. Spyros Marchetos, Aristotle University of Thessaloniki, Greece
  11. Viktor Chistyakov, Columbia University

In The News

JOB VACANCY: PROJECT MANAGER

Job Title: Project Manager - Fight Inequality Alliance ‘Organising School’

JOB VACANCY: COORDINATION ASSISTANTFight Inequality
Civil Society Organisations Call for Principles for Fair Channeling of Special Drawing Rights

30th September, 2021

JOB VACANCY: COMMUNICATION CONSULTANTFight Inequality