Special Drawing Rights: Can the IMF’s Reserve Currency Become a Transformative Financial Resource?

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Special Drawing Rights: Can the IMF’s Reserve Currency Become a Transformative Financial Resource?

Last week, the IMF approved the creation of the Resilience and Sustainability Trust (RST), which aims to channel up to 45 of the $650 billion in SDRs allocated by the IMF in August 2021. A new brief from Eurodad argues that the RST is a flawed attempt to address the inequitable manner in which SDRs have been distributed and takes stock of the limitations and opportunities for rerouting SDRs outside the IMF. In a joint CSO letter, we also urged the IMF and the G20 to allocate an additional $2.5 trillion in SDRs and take several steps to reform current and proposed systems to reorient them.

Read our new report here.

Read the open letter to G20 finance ministers, central bank governors and the IMF here.

Read our press release for the open letter here.

For more Spring Meetings/G20 resources, please see below.


News & analysis

Increase in external aid in 2021 still fails to meet the needs of global crises

Although ODA spending has reached an all-time high, excess vaccine donations, in-country refugee costs, use of private sector instruments and debt relief continue to inflate ODA figures. ‘aid. Excluding vaccine costs, ODA increased by only 0.6% in real terms compared to 2020. This falls short of the resources needed by countries to cope with the huge increase in poverty levels around the world.

Read Eurodad’s press release here.

Read the letter from the CSO reference group to the DAC here.

Flagship loan transparency program gets information from just two banks

by Jubilee Debt Campaign

Only two banks disclosed information through the flagship loan transparency program of the Institute of International Finance and the Organization for Economic Co-operation and Development. This is an embarrassing result and proves that the voluntary approach has failed.

Read the press release here.


Useful Resources

Spring meetings / G20 resources

World Bank BEE: Old wine in a new bottle

published by Al Jazeera

Read this opinion piece by our Senior Policy and Advocacy Officer Chiara Mariotti, Flora Sonkin, Policy Researcher for the Society for International Development (SID) and Bhumika Muchhala, Senior Policy Researcher at Third World Network, on why the business enabling environment project is nothing but a rebranding of the discredited and ineffective Doing Business report and rankings.

Read the opinion piece here.

Letter from CSOs on worsening debt overhang in low- and middle-income countries and the role of the private sector

A coalition of 34 CSOs has expressed concern about the rapidly worsening debt overhang and fiscal conditions in many low- and middle-income countries. Meanwhile, citizens face inflationary pressures as well as the continued impact of Covid-19, the war in Ukraine and the climate crisis. This letter was sent to finance ministers and central bank governors of the G20, the Indonesian Presidency, the European Commission, the G24, the South Center and the UN Secretary General.

Read the letter here.

IMF must drop austerity demands as cost of living crisis drives up global hunger and poverty

by Oxfam International

87% of International Monetary Fund (IMF) COVID-19 loans are forcing developing countries to adopt tough new austerity measures that will further exacerbate poverty and inequality. This primarily affects those who have already been denied equal access to vaccines and are facing some of the world’s worst humanitarian crises.

Read Oxfam’s press release here.

Read Oxfam’s analysis here.

Civil society calls for public comment period on new IMF staff guidance note on surveillance

by the Bretton Woods Project

Civil society organizations have written an open letter to IMF Managing Director Kristalina Georgieva and Director of the Strategy, Policy, and Review Department Ceyla Pazarbasioglu, seeking their support for a period of consultation public on a new guidance note for staff that will guide the IMF’s implementation of its 2021 Comprehensive Surveillance Review.

Read the CSO letter here.

April 7-15 | Eurodad and its partners at the WBG/IMF Spring Meetings

Relive the sessions organized by Eurodad and its partners at the Civil Society Policy Forum and the World Bank Group – International Monetary Fund Spring Meetings!

Find all the sessions here.

Database of public finances for energy

by Oil Change International

The Public Energy Finance Database tracks international financing of energy projects to help hold G20 governments accountable for these influential investments. It is the only publicly available database that tracks international public energy finance across multiple countries.

Take a look at the database here.


Jobs

Editors for the “Deep Dives” platform

Reality of aid – Asia-Pacific (RoA-AP) | Remote | Deadline: May 4

Reality of Aid – Asia Pacific is looking for two writers to contribute to their Deep Dives platform which aims to inform members, development actors and the public about factual data regarding aid and development cooperation in the region.


Events

June 9-10 | Eurodad Conference 2022

Taking place in Brussels on June 9-10, the Eurodad conference will bring together our like-minded members, allies, partners and scholars in an inspiring and interactive setting. Eurodad convenes this space for the economic justice movement to analyze, strategize and organize.

Early bird registrations are extended until the 22 April 16, 59 CEST.

April 25-28 | 2022 Forum on Financing for Development: Sessions and side events to watch

The Seventh Forum on Financing for Development will take place from April 25-28. Join Eurodad and its partners during sessions and side events!

May 3-31 | Learn about climate finance

Learn more about climate finance and how to engage more effectively in climate policy and advocacy. Sign up for our climate finance webinar series taking place on Tuesdays at 15:00 CEST throughout May to build capacity that can be shared with national development and climate change movements.

Additional information will be available on our website early next week.


This newsletter has been produced with co-funding from the European Union, Bread for the World and Norad. The contents of this publication are the sole responsibility of Eurodad and can in no way be taken to reflect the position of the funders.

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