|
|||
ABOUT THE BOOK The allocation of Special Drawing Rights (SDRs) to member states of the International Monetary Fund (IMF) during the economic crisis in 2009 has highlighted the unique financing potential of this international reserve asset issued by the IMF. In this paper, ways to effectively utilize the SDR as a source of liquidity and development funding for developing countries are explored. The SDR is also a key element in many of the proposals for reforming the global reserve system advanced in the wake of the crisis. It is seen as a possible vehicle for the creation of an international reserve currency that would remove the distortions arising from the present dependence on the US dollar. This paper looks at the discussion on SDRs and reserve reform generated by the crisis, and the opportunities it presents to establish a more efficient and development-friendly reserve regime. ABOUT THE AUTHORS SOREN AMBROSE is Development Finance Coordinator at ActionAid. BHUMIKA MUCHHALA is
a researcher with the Contents EXECUTIVE SUMMARY
1 INTRODUCTION 2 ALLOCATING SPECIAL DRAWING RIGHTS TO FINANCE DEVELOPMENT How do SDRs work? New special allocations of SDRs Reversible, or temporary, SDRs Proposals for SDR transfers 3 TOWARDS REFORM OF THE GLOBAL RESERVE SYSTEM Why a new system?: The risks of relying on the US dollar The growth of reserves in developing countries – and the cost Fixing the global reserve system ... and the IMF too 4 RECOMMENDATIONS References
Annex: Language on Global Reserve System and Special Drawing Rights in Key Documents PRICE POSTAGE Third World countries
Other foreign countries US$6.00 US$2.00 (air); US$1.00 (sea) (For orders of more than 3 copies, please write in for reduced postal rate) How to Order the Book Visit our TWN Online Bookshop or contact Third World Network at 131 Jalan Macalister, 10400 Penang, Malaysia. Tel: 604-2266159 Fax: 604-2264505 Email for further information.
|