The IMF will allocate the Special Drawing Rights among its member states based on their quotas, which are determined by the size of a country’s economy and its role in the global economy. Therefore, about 60% of these funds will go to rich countries that do not need them. African countries will receive $33.6 billion, with the lion’s share going to the five largest economies on the continent – South Africa, Nigeria, Algeria, Morocco and Egypt. The IMF and many countries recognise that this division of the new resource is both inequitable and inefficient. They are talking of creating a mechanism for reallocating some of the funds – an amount of $100 billion is mentioned – to developing countries. If done effectively, the reallocation could help African countries deal with COVID-19, climate change and their many other economic and social challenges. It is also an opportunity for African countries to begin reforming their relationship with the IMF. But this will require them taking the initiative to ensure that the reallocation mechanism is fully responsive to African needs and is accountable to Africans.
SOURCE: THE CONVERSATION
More Stories
South Africa Still a Long Way Off in Building a National Culture of Human Rights
After Lawsuits and Demonstrations Led by Chagossian Women, Britain Paid Some Compensation through the Mauritian Government to the Exiled Chagos Population
Sister to Egypt’s Most Prominent Political Prisoner Takes the Fight to the UN and EU
MSI Reproductive Choices in Africa Helps Women and Girls Make Informed Decisions about their Bodies and Futures
Kenya’s ‘Linda Mama’ Policy is a Step in the Right Direction Towards Universal Health Coverage
The Women and Caregivers behind Uganda’s Model for Palliative Care
Tunisian President’s Speech was Essentially the “Great Replacement” Theory, but with a Local Twist
The UN’s Largest Annual Gathering on Gender Equality and Women’s Empowerment Tackles the Gender Digital Divide
Challenges And Opportunities – Global Survey Results On Women’s Tech Careers
WHO Director’s Insights on Health in Africa and the IIAG Results
Best Style Moments of Tems
To the World