CSOs call for the fair channeling of Special Drawing Rights
280 civil society organisations and academics call on the G20 to agree fair channeling of Special Drawing Rights to countries who are in greater need.
In a letter to world finance leaders, 280 civil society organizations and academics from all over the world are calling on wealthy countries to redistribute their global reserve currency or Special Drawing Rights (SDRs) to help vulnerable countries face the Covid-19 crisis, the inequality crisis and the climate crisis.
The letter outlines key principles for fair and transparent channeling of SDRs, and asks leaders to demonstrate political will in overcoming the technical difficulties of channeling.
Specific demands include:
- The provision of financing that is debt-free and unconditional, so SDR transfers do not compound debt burdens or become the reason to force difficult austerity measures.
- That SDRs are channeled to all countries in need, including middle-income countries so far left out of debt relief and aid initiatives.
- Requiring participation and accountability to citizens in the use of the funds by both providers and recipients
- Prioritising donations to support health, education, social protection and fair recovery with gender justice.