Using a Vulnerability Index to Simulate a Reallocation of SDRs?
March 03, 2022
The recent allocation of $650 billion of Special Drawing Rights (SDRs) by the IMF to the world’s economies is a major achievement of international action to bridge the financing gap of many countries in the aftermath of the COVID-19 crisis. To complement it, the Summit on the Financing of African Economies, held in Paris on May 18, 2021, highlighted the possibility to magnify this allocation through SDRs channelling for the benefit of countries most in need. In October 2021, the G20 committed to channelling $100 billion of SDRs to the benefit of low-income countries, including in the African continent, small island developing states, and vulnerable middle-income countries. Much of this effort will be done through the IMF’s Poverty Reduction and Growth Trust (PRGT) and a new Resiliency and Sustainability Trust (RST) while other options are also being discussed to complement these two channels.
How have vulnerable countries used their SDRs thus far and what potential do they see for increased use of IMF lending? How can we optimize the effect of SDRs channelling (among countries and among objectives)? What can the RST bring to countries in financial constraints? Are there other mechanisms that could be used to channel SDRs to the benefit of countries struggling with the economic aftermath of the COVID-19 pandemic and facing the fiscally daunting challenges of climate change? How vulnerabilities can be taken into account for mobilizing these SDRs?
The webinar will be simultaneously broadcast in English and French.
Link to the CGdev page (live video)
In the first segment, the discussion, introduced by the moderator, will focus on how the SDR allocation could be used to deal with vulnerabilities. The IMF will present its view of the concrete results achieved by the SDR allocation, the PRGT financing and expected outcomes of the future RST. Ministers and central bankers of vulnerable countries will discuss what they have done or plan to do with their SDR allocations and the challenges in implementing those plans. A moderated discussion will follow, with some questions from the audience.
OPENING REMARKS
MODERATOR
GENERAL INTRODUCTION
To discuss the impact of the SDR allocation, reallocations to the PRGT and the establishment of the RST
PRESENTATIONS –Government officials
To discuss the use of SDRs in Senegal and the prospects for use in the WAMU region
To discuss the use of SDRs in Ghana
DISCUSSANTS
To discuss the opportunities and challenges related to the SDR allocation
CONCLUDING REMARKS
In the second segment, panelists will broach novel ideas for channelling SDRs beyond IMF lending, perhaps using the innovations in the RST as a model. This will be followed by a moderated discussion focused on how these solutions could help exploit the full power of SDRs.
OPENING REMARKS
MODERATOR
PARTICIPANTS
CONCLUDING REMARKS
