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 of SDRs allocated by the IMF in August 2021. A new brief by Eurodad argues that the RST is an imperfect attempt to remedy the inequitable way in which SDRs have been distributed and takes stock of the limits and opportunities of rechannelling SDRs outside the IMF. In a joint CSOs letter, we also urged the IMF and the G20, to both allocate an additional US$2.5 trillion in SDRs and take several steps to reform the current and proposed systems for rechanneling 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 resources on the Spring Meetings/ G20 please see below.

News & analysis

Rise in overseas aid in 2021 still fails to meet needs of global crises

Despite ODA spending reaching an all-time high, donations of excess vaccines, in-country refugee costs, the use of private sector instruments and debt relief continue to inflate aid figures. If the costs of vaccines were excluded, ODA only grew by 0.6 per cent in real terms compared to 2020. This does not reach the resources needed for countries to tackle the huge increase in global poverty levels.

Read Eurodad's press release here. 

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

Flagship lending transparency scheme gets information from just two banks

by Jubilee Debt Campaign

Only two banks have disclosed any information through the flagship lending transparency scheme of the Institute of International Finance and Organisation for Economic Co-operation and Development. This is an embarrassing outcome and proves that the voluntary approach has failed. 

Read the press release here.

Useful resources

Spring Meetings / G20 resources

The World Bank’s 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 Society for International Development (SID) and Bhumika Muchhala, Senior Policy Researcher at the 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.

CSO letter on the worsening of debt distress in low- and middle-income countries and the role of the private sector

A coalition of 34 CSOs expressed their concerns regarding the rapid worsening of debt distress and fiscal conditions in many low- and middle-income countries. Meanwhile citizens are facing inflationary pressures as well as the ongoing impact of Covid-19, the war in Ukraine and the climate crisis. This letter was sent to the G20 Finance Ministers and Central Bank Governors, the Indonesian presidency, the European Commission, the G24, the South Centre and the UN Secretary General.

Read the letter here. 

IMF must abandon demands for austerity as cost-of-living crisis drives up hunger and poverty worldwide

by Oxfam International

87 percent of the International Monetary Fund’s (IMF) COVID-19 loans require developing countries to adopt tough new austerity measures that will further exacerbate poverty and inequality. This mainly 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 guidance note for staff on surveillance

by Bretton Woods Project

Civil society organisations have written an open letter to the IMF’s Managing Director, Kristalina Georgieva, and Director of the Strategy, Policy and Review Department, Ceyla Pazarbasioglu, requesting their support for a public comment period 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.

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

Rewatch the sessions organised by Eurodad and partners at Civil Society Policy Forum and World Bank Group - International Monetary Fund Spring Meetings!

Find all the sessions here. 

Public Finance for Energy Database

by Oil Change International

The Public Finance for Energy Database tracks international finance for energy projects to make it easier to hold G20 governments accountable for these influential investments. It is the only publicly available database tracking international public finance for energy across multiple countries.

Take a look at the database here.

Job vacancies

Writers for "Deep Dives" Platform

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

Reality of Aid - Asia Pacific is looking for two writers to contribute to their platform Deep Dives which seeks to inform members, development actors, and the public on evidence-based data regarding aid and development cooperation in the region. 


9-10 June | Eurodad Conference 2022

Taking place in Brussels on 9-10 June, Eurodad’s Conference will bring together our members, allies, partners and like-minded academics in an inspirational and interactive setting. Eurodad is convening this space for the economic justice movement to analyse, strategise and organise.

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

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

The seventh Financing for Development Forum will take place from 25 to 28 April. Join Eurodad and partners at the sessions and side events!

3-31 May | Skilling-up on Climate Finance

Learn more about climate finance and how to engage more effectively with climate policy and advocacy. Sign up for our climate finance webinar series taking place Tuesday at 3pm CEST throughout May to build capacity that can be shared with domestic development and climate 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 under no circumstances be regarded as reflecting the position of the funders.