ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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A Consortium Proposal to the SDR Basket Countries

In Memory of David Graeber (1961–2020)

A Consortium Proposal to the SDR Basket Countries

On 30 March 2020, the United Nations Conference on Trade and Development (UNCTAD) called for a $2.5 trillion COVID-19 crisis package for developing countries.1 The UNCTAD proposals were: (i) $1 trillion to be made available through the expanded use of the International Monetary Fund (IMF) issued Special Drawing Rights (SDRs); (ii) $1 trillion for debt cancellation; (iii) $500 billion to fund a Marshall Plan for health recovery to be dispersed as grants.

Shortly after the UNCTAD call, many others jumped on to the bandwagon, and on 12 April 2020, even the Financial Times editorial board joined the choir.2 Despite that, only 42% would go to emerging and developing countries, the Financial Times argued for an allocation of one trillion Special Drawing Rights (SDRs) (about $1.37 trillion at the time) to address the ongoing COVID-19 crisis and its economic outcomes as a matter of moral duty.

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Updated On : 23rd Nov, 2020

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