Particularly, the study examines Kenya’s experiences with the SDR allocation and the extent to which SDR compares to other IMF’s debt relief, such as Extended Credit Facility (ECF) in the management of public debt. [...] Despite the liquidity boost and additional resources for supplementing official reserves, the 5.2% SDR allocation to African region continues to raise significant questions relating to inclusivity and fairness of the SDR allocation system and the international financial architecture in general. [...] This disparity in terms of SDR allocations with less consideration to the attendant needs, calls for the need to relook at the international financial architecture to address the deficiency in equitable allocation of SDR as a critical fiscal tool for debt relief. [...] In terms of regional share of the 2021 SDR allocation, estimates from the IMF indicates that of the total SDR allocations to developing countries, which have approximately 43% of the world’s population, Africa received only SDR 23.7 billion (about $33.8 billion, which translates to 5.2%). [...] The aim was to determine to what extent the experiences two years after the 2021 SDR allocation can inform a reform of the SDR quota system.
Authors
- Pages
- 29
- Published in
- Zimbabwe
Table of Contents
- Abstract 2
- Table of Contents 3
- Abstract 3
- .................................................................................................................................................. ii 3
- Table of Contents 3
- ................................................................................................................................. iii 3
- Acronyms 3
- .............................................................................................................................................. iv 3
- 1. Introduction to Special Drawing Rights 3
- ......................................................................................... 1 3
- 2. Methodology 3
- ...................................................................................................................................... 4 3
- 3. Analysis of Global Regional and Kenyas 2021 SDR Allocation 3
- ................................................. 5 3
- 3.1 Global SDR Allocation 3
- 3.2 African SDR Allocation 3
- 3.3 Kenyas SDR Allocation 3
- 4. Kenyas Perspectives on 2021 Special Drawing Rights 3
- ................................................................. 9 3
- 4.1 Legal Frameworks 3
- 4.2 Utilization and Distribution of Special Drawing Rights 3
- 4.3 Priorities and Strategic Considerations 3
- 5. Special Drawing Rights as a Debt Relief Package for African Countries 3
- .................................. 13 3
- 5.1 Debt Burden for Kenya and African countries 3
- 5.2 SDRs as a Debt Relief Compared to other Policy Frameworks 3
- 5.3 Governance Transparency and Accountability of SDR allocations 3
- 6. Increasing or Rechanneling of Special Drawing Rights to African Countries 3
- ........................ 16 3
- 7. Conclusion and Recommendations 3
- ................................................................................................ 18 3
- 7.1 Conclusion 3
- 7.2 Recommendations and Advocacy proposals 3
- References 3
- ............................................................................................................................................ 21 3
- Acronyms 4
- AfDB 4
- AGTF 4
- BOPs 4
- CBK 4
- CSOs 4
- DSSI 4
- ECF 4
- GDP 4
- IFIs 4
- IMF 4
- KIIs 4
- LICs 4
- OCOB 4
- ODA 4
- PBOC 4
- PRGT 4
- RST 4
- SDGs 4
- SDR 4
- UNECA 4
- VTA 4
- 1. Introduction to Special Drawing Rights 5
- 2. Methodology 8
- 3. Analysis of Global Regional and Kenyas 2021 SDR Allocation 9
- 3.1 Global SDR Allocation 9
- Figure 1. Distribution of 2021 SDR allocation between the global North and South 9
- Source Authors computation using IMF 2021b data 9
- Table 1. Regional distribution of 2021 SDR allocation 10
- Source Adapted from Economic Commission for Africa and Economic Commission for 10
- Latin America 2022 United Nations Conference on Trade and Development 2022 10
- 3.2 African SDR Allocation 11
- 3.3 Kenyas SDR Allocation 11
- Table 2. Distribution of 2021 SDR allocation in African region 12
- Source Adapted from IMF 2021b data 12
- 4. Kenyas Perspectives on 2021 Special Drawing Rights 13
- 4.2 Utilization and Distribution of Special Drawing Rights 14
- 4.3 Priorities and Strategic Considerations 15
- 5. Special Drawing Rights as a Debt Relief Package for African Countries 17
- 5.1 Debt Burden for Kenya and African countries 17
- Table 3. Analysis of Kenyas external debt and debt service 17
- Source Adapted from World Bank IMF 2022 17
- 5.2 SDRs as a Debt Relief Compared to other Policy Frameworks 18
- 5.3 Governance Transparency and Accountability of SDR allocations 19
- 6. Increasing or Rechanneling of Special Drawing Rights to African Countries 20
- 7. Conclusion and Recommendations 22
- 7.1 Conclusion 22
- 7.2 Recommendations and Advocacy proposals 22
- Adopt urgent reforms around SDR allocation governance and reporting 23
- Implement substantive reforms around SDR compatibility with critical 23
- Develop flexible conditionalities around SDR to make it work like other IMF 23
- Expand the scope of the SDR quota system beyond GDP 23
- Develop effective working partnership among Central Banks Parliament and 23
- Treasury to improve effectiveness of SDR allocations 23
- African governments should work closely with CSOs and encourage them to build 24
- References 25
- Putting SDRs to good use in Africa. Boosting the capital base of 25
- A valentines day gift for the AfDBs 25
- Infographic Africa SDRs How they are used 25
- Options paper for channeling Chinas SDRs to Africa. 25
- African ministers call for reforms of the 25
- IMFs special drawing rights system 25
- Overcoming the technical and political difficulties of using SDRs for 25
- Africa is losing the battle against extreme 26
- Government fingered for non-disclosure on how 26
- Ksh 465B IMF loan was used 26
- Special Drawing Rights Let us talk about 26
- The SDR as a basket of currencies 26
- . Acceptances of the proposed amendment of the 26
- Articles of Agreement on reform of the Executive Board and consents to 2010 quota 26
- Annual update on SDR trading operations 26
- From questions and answers on special 26
- 2021 general SDR allocation 26
- Overview What is the SDR What is new allocated 26
- SDRs 26
- IMF quotas. How does the IMF use quotas 26
- Laws of Kenya International Monetary Fund Act No 16 CAP 467 of 1969 27
- About Vision 2030 27
- Debt service risks special drawing rights 27
- Special drawing rights Can the IMFs reserve currency become a 27
- Kenyas annual public debt report 20202021 27
- Special drawing rights and its impact on economic justice towards 27
- Press release on the FY 202324 budget statement 27
- African Debt Three proposals to Reform the SDR System 28
- Analysis China debt restructuring policy under Scrutiny as more 28
- Kenyan president William Ruto champions New Global 28
- Financial Architecture at Global Summit 28
- Joint World Bank IMF debt sustainability analysis 28
- Debt and fiscal risks toolkit Debt sustainability analysis DSA 28
- SDRs for COVID-19 relief The good the 28
