{
  "title": "IMF Managing Director Kristalina Georgieva’s Statement at the Paris Peace Forum on Increasing Support for Vulnerable Countries via SDR Rechanneling",
  "publication": "IMF News, November 11, 2021",
  "sourceUrl": "https://www.imf.org/en/news/articles/2021/11/11/pr21330-imf-md-statement-at-the-paris-peace-forum",
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  "summary": "The world economy is recovering and is expected to achieve 5.9% growth this year.",
  "publishDate": "2021-11-11",
  "sections": [
    {
      "heading": "Overview",
      "content": "- The world economy is recovering and is expected to achieve 5.9% growth this year.\n- For low-income developing countries, growth is projected to be 3%.\n- The statement highlights a dangerous divergence driven by severe inequality in access to vaccines and in available policy space for vulnerable countries.\n- The recent Special Drawing Rights (SDRs) allocation is presented as an important tool to address liquidity and reserve needs in financially constrained nations."
    },
    {
      "heading": "Key statistics and findings",
      "content": "- New SDR allocation: $650 billion.\n- Allocation breakdown:\n  - $275 billion went to emerging markets and developing economies.\n  - $21 billion went to the poorest countries.\n  - Africa received about $31 billion.\n- Growth projections:\n  - Global: 5.9% growth this year.\n  - Low-income developing countries: 3% growth this year."
    },
    {
      "heading": "Policy proposals and instruments",
      "content": "- Rechanneling of SDRs:\n  - Voluntary on-lending or rechanneling from countries with strong external positions to more vulnerable countries is advocated.\n  - The G20 global ambition: rechannel $100 billion of the SDR allocation from richer to poorer countries.\n- Existing and proposed IMF instruments:\n  - PRGT (Poverty Reduction and Growth Trust): an instrument to which SDRs can be rechanneled to boost zero-interest lending to low-income countries.\n  - RST (Resilience and Sustainability Trust): a proposed, longer-term instrument with low interest rates to provide funding to low-income countries, vulnerable middle-income countries, and fragile island economies.\n    - Aspiration for the RST: start with about $30 billion, building it up to $50 billion and beyond.\n- Technical assistance:\n  - The IMF offers to provide technical advice to multilateral development banks exploring other viable options for rechanneling."
    },
    {
      "heading": "Implementation timeline and targets",
      "content": "- RST design and implementation goals:\n  - Aim to have RST design in place by Spring Meetings 2022.\n  - Aim for implementation by the IMF Annual Meetings in the same year."
    },
    {
      "heading": "Rationale and framing",
      "content": "- SDRs improve a country’s reserve position and create liquidity without adding to debt.\n- Due to IMF shareholding and quota arrangements, countries most in need received a relatively small part of the overall allocation, motivating rechanneling.\n- Moral and self-interest argument:\n  - It is morally right to help everyone in need.\n  - It is also in everybody’s self-interest—“No-one is safe until everyone is safe.”\n  - This applies to fighting the pandemic and to fighting climate change.\n- RST purpose:\n  - Support policies for a transformation to a low-carbon and climate-resilient economy."
    },
    {
      "heading": "Summary conclusions",
      "content": "- The new SDR allocation, combined with further rechanneling from countries with strong reserve positions to more vulnerable countries, is presented as an example of enlightened self-interest.\n- Collective action and cooperation are emphasized as necessary to win the global crisis.\n\nSource: IMF Managing Director Kristalina Georgieva’s Statement at the Paris Peace Forum, November 11, 2021.\n\n---\n\n\n References\n\n- https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva\n- Special Drawing Rights (SDRs) -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2021/11/11/pr21330-imf-md-statement-at-the-paris-peace-forum"
    }
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    "[Markdown version](/en/news/articles/2021/11/11/pr21330-imf-md-statement-at-the-paris-peace-forum/index.md)",
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    "Published: November 11, 2021",
    "The world economy is recovering and is expected to achieve 5.9% growth this year.",
    "For low-income developing countries, growth is projected to be 3%.",
    "The statement highlights a dangerous divergence driven by severe inequality in access to vaccines and in available policy space for vulnerable countries.",
    "The recent Special Drawing Rights (SDRs) allocation is presented as an important tool to address liquidity and reserve needs in financially constrained nations.",
    "New SDR allocation: $650 billion.",
    "Allocation breakdown:",
    "Growth projections:",
    "Rechanneling of SDRs:",
    "Existing and proposed IMF instruments:",
    "Technical assistance:",
    "RST design and implementation goals:",
    "SDRs improve a country’s reserve position and create liquidity without adding to debt.",
    "Due to IMF shareholding and quota arrangements, countries most in need received a relatively small part of the overall allocation, motivating rechanneling.",
    "Moral and self-interest argument:",
    "RST purpose:",
    "The new SDR allocation, combined with further rechanneling from countries with strong reserve positions to more vulnerable countries, is presented as an example of enlightened self-interest.",
    "Collective action and cooperation are emphasized as necessary to win the global crisis.",
    "[https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva](https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva)",
    "[Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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