Because of the hefty tightening of health financing driven especially by the reduction of Official Development Assistance, the world is facing a health emergency at the complete opposite of what would be needed to properly implement the lessons from COVID-19. The same club of donor countries, however, also controls Special Drawing Rights (SDRs), which represent a strong and essential instrument to address the crucial needs of developing countries, including for their health budget. As the WHO starkly warns, it’s no longer a question of if a new pandemic will hit, but when. As the 4th international conference on Financing for development opens in Sevilla, the time is therefore critical to work towards a more efficient utilization of SDRs . Let’s stop beating around the bush and ensure they are put to good use to effectively address pressing health financing needs.
Our recommendations :
- Ensure that pandemic preparedness is not forgotten in the use of reallocated SDRs
- Correct the imbalance in IMF quotas to offer stronger support to vulnerable countries
- Monitor the reallocation promises so SDRs can benefit those who most need it
- Reallocate SDRs to Regional Development Banks
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