Prominent Civil Society Organizations Urge IMF to Issue New Relief to Help Nations Combat Global Crises
For Immediate Release: October 6, 2022
Contact: Kevin Gerson, kgerson@skdknick.com
Coalition of 140 Humanitarian, Economic, Labor, and Faith-Based Groups Call for Additional Special Drawing Rights (SDRs)
Washington, DC - Today, 140 civil society organizations around the world, including the AFL-CIO, Oxfam International, and the International Chamber of Commerce, sent a letter to the International Monetary Fund’s Board of Governors calling for a new $650 billion issuance of Special Drawing Rights (SDRs) to help low- and middle-income countries grapple with the historic and overlapping health, food, energy, and inflation crises they are struggling to overcome. The coalition’s call for a new allocation of emergency reserves comes ahead of the Annual Meetings of the IMF and World Bank, alongside IMF Managing Director Kristalina Georgieva’s warning that the global economic outlook remains dire.
The groups write in the letter:
“A major new allocation of SDRs is the most direct and efficient response to assist countries around the world in responding to these new crises, and to shocks yet to come. A new allocation of at least $650 billion would immediately make hundreds of billions of dollars available to nearly all low- and middle-income IMF member countries without debt or conditions and only requires political will on the part of the Fund’s board; particularly those members, like the U.S., Japan, China, Germany, and France, that have the largest voting shares at the IMF.”
The full text of the letter, along with the complete list of signers, is available here.
###
Spokespersons from various organizations offered additional praise for the amendment:
“I am delighted to see the passage of this legislation for no-cost global COVID relief. The Senate should include these measures for debt relief and emergency financial resources in this next COVID relief package ― along with humanitarian assistance. This innovative and noncontroversial solution will help countries prevent the spread of COVID and resulting hunger ― without costing US taxpayers a single penny.”
— Mark Harrison, Peace with Justice Program Director, United Methodist Church - General Board of Church and Society
“The US Congress must show compassion and help save lives globally at $0 cost to the US taxpayers. The issuance of special drawing rights at the IMF will help countries globally to protect their people from COVID-19, hunger, and economic devastation. Like many globally, African countries need these resources to survive COVID-19 and its economic downturn. It is our moral obligation to show compassion and save lives.” ”
— Dr. Pauline Muchina, Policy, Education and Advocacy Coordinator for Africa, American Friends Service Committee
“As an African-American, COVID has disproportionately impacted my community. Internationally, when we look at countries that are, as the Bible says, ‘the least of these,’ our faith calls us to act. I call on senators to co-sponsor the Durbin bill for a global response to COVID.”
— Edith Guffey, Conference Minister, Kansas-Oklahoma Conference, United Church of Christ
“We applaud the House of Representatives in passing this life-saving legislation. If enacted, it will help developing countries buy PPE, medicine and other US exports. This will save lives around the world and boost the economy here at home. The Congressional Budget Office has confirmed this bill will have a $0 cost to the United States. The Senate should include these provisions in funding legislation this year."
— Isaac Evans-Frantz, Director, Action Corps
“Now more than ever, debt means death. Maryknoll missioners see this in poor countries like Kenya and Ecuador where governments spend more on servicing debt than on health care. As the coronavirus hits, people fear unemployment and hunger as much as getting sick. If we don’t do what we can to shore up the global economy, we could see millions of people around the world destitute and dying. We will all suffer because our economies are connected and this virus knows no borders. The House legislation, and its companion in the Senate, the Support for Global Financial Institution Pandemic Response Act, recognize these facts and that Special Drawing Rights were created for this kind of emergency. Just as the United States supported the IMF allocating SDRs in the financial crisis in 2009, it should support it now.”
— Susan Gunn, Director, Maryknoll Office for Global Concerns
“As the pandemic continues to wreak havoc in Latin America, South Asia and Africa, we need a global response to the global economic crisis. A major allocation of Special Drawing Rights by the IMF is a critical complement to more debt relief and more aid.”