Special Drawing Rights (SDRs): A Lifeline for the Global South and a Boost to the Global Economy

The policy brief advocates for the issuance of $650 billion in Special Drawing Rights (SDRs) via the G20 to provide liquidity to developing nations without increasing debt. It highlights the role of SDRs in funding climate adaptation and social protection, particularly in sub-Saharan Africa and Latin America. The author calls for the IMF to reform SDR accounting—treating them as equity rather than liabilities—to unlock fiscal space and encourage donations from wealthy nations to the Global South.

• SDRs serve as a critical tool for developing nations because they provide immediate financial resources without increasing national debt, supporting fiscal stability and investments in climate adaptation, healthcare, and social protection.
• The author proposes a new $650 billion SDR issuance at the 2024 G20 summit in Brazil to provide liquidity for Global South nations to meet Sustainable Development Goals and address the climate crisis, noting that advanced economies also benefit through stimulated trade.
• Current IMF accounting records SDRs as liabilities instead of equity, which artificially increases debt levels; reverting this method would increase fiscal space and facilitate SDR donations from wealthy nations for development and debt repayment.

APA

katie (2024). Special Drawing Rights (SDRs): A Lifeline for the Global South and a Boost to the Global Economy. Institute for Economic Justice. https://iej.org.za/resource/policy-brief/special-drawing-rights-sdrs-a-lifeline-for-the-global-south-and-a-boost-to-the-global-economy/

Chicago

katie. Special Drawing Rights (SDRs): A Lifeline for the Global South and a Boost to the Global Economy. Institute for Economic Justice, 2024. https://iej.org.za/resource/policy-brief/special-drawing-rights-sdrs-a-lifeline-for-the-global-south-and-a-boost-to-the-global-economy/.

Wikipedia

{{cite report |last1=katie |title=Special Drawing Rights (SDRs): A Lifeline for the Global South and a Boost to the Global Economy |publisher=Institute for Economic Justice |date=15 August 2024 |url=https://iej.org.za/resource/policy-brief/special-drawing-rights-sdrs-a-lifeline-for-the-global-south-and-a-boost-to-the-global-economy/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{katie2024special, author = {katie}, title = {{Special Drawing Rights (SDRs): A Lifeline for the Global South and a Boost to the Global Economy}}, institution = {Institute for Economic Justice}, year = {2024}, month = aug, url = {https://iej.org.za/resource/policy-brief/special-drawing-rights-sdrs-a-lifeline-for-the-global-south-and-a-boost-to-the-global-economy/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }