For Immediate Release: April 7, 2023
Contact: Dan Beeton, beeton@cepr.net

Labor, Humanitarian, Faith, and Human Rights Groups Urge Biden to Support Costless IMF Relief for Low- and Middle-Income Countries and Boost US Jobs

Washington, DC — More than 50 labor, humanitarian, faith-based, and human rights organizations are calling on President Biden and Treasury Secretary Yellen to support a new allocation of $650 billion in Special Drawing Rights (SDRs). A major new SDR allocation like this — which would come at no cost to US taxpayers, and would not require congressional authorization — would provide much-needed assistance to low- and middle-income countries around the world as they face the combined challenges of climate-related natural disasters, global economic challenges (including a growing debt crisis), and ongoing fallout from the COVID pandemic. And, the groups point out in a letter, the SDRs would also boost US jobs by enabling countries to import more goods from the US.

The AFL-CIO, Communications Workers of America, UNITE HERE, Oxfam America, Partners In Health, Public Citizen, Friends of the Earth US, International Crisis Group, American Friends Service Committee, Maryknoll Office for Global Concerns, Action Corps, the Center for Economic and Policy Research, the Demand Progress Education Fund, and the Center for American Progress are among the signatories to the letter that was sent to Biden and Yellen today.

“The Biden-Harris administration has rightly expressed concern about the evolving debt crisis and need for climate finance in low- and middle-income countries,” Kate Donald, Senior Director of Accountability and International Policy at the Center for American Progress, said. “A new SDR issuance would be a concrete and practically cost-free way to grant these countries a measure of the relief that they so desperately need.”

Noting that “many economists believe that the Federal Reserve’s and other central banks’ continuing interest rate hikes could push the U.S. economy and the world into a downturn,” the letter points to SDRs as “one of the few tools to mitigate the risks of recession at home and abroad that is available to your administration without Congressional action.” 

The groups sum up the benefits a new SDR allocation of this size would have: “A new issuance of $650 billion in SDRs does not require additional Congressional action; costs U.S. taxpayers nothing; reduces the frequency and impact of crises, as well as economic downturns, around the world; addresses significant causes of social and political unrest; and boosts U.S. exports. The latter creates jobs for American workers.”

The Center for Economic and Policy Research has demonstrated how SDRs can lead to increased US exports, in a 2021 paper.

“The past issuance of SDRs was pivotal in assisting countries around the world as they responded to the challenges presented by the COVID-19 pandemic,” Cavan Kharrazian of the Demand Progress Education Fund said. “The world economy is still struggling, and additional SDR allocations are essential for countries to effectively address the complex crises they confront. For the United States, this is a win-win situation: it involves no cost to American taxpayers and ultimately reinforces the US economy by fostering increased demand for our exports and services. A more resilient global economy is undeniably in our nation's best interest.”

“At this moment, with growing world hunger since the beginning of COVID-19, we need bold action,” Action Corps Director Isaac Evans-Frantz said. “The 2021 release of $650 billion Special Drawing Rights is a critical step forward. Organizations representing tens of millions of Americans have been clear the world needs another release of these resources. Congress must speak up. And President Biden and Secretary Yellen must act. This will be a win for the global economy and a win for the United States.” Action Corps leads the Global Crisis Relief Coalition that was a driving force for the 2021 issuance.

“SDRs are a powerful tool that can alleviate global poverty, deliver global justice, advance climate equity – and cost U.S. taxpayers nothing,” Robert Weissman, President of Public Citizen, said. “The Biden administration should race to support the new issuance of SDRs at the next executive board meeting of the International Monetary Fund.”

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