Time - USA (2022-01-31)

58 TIME January 31/February 7, 2022

This SDR

allocation

is a historic

example

of global

collaboration

at its best:

countries

coming

together to help

each other

its members because it

relies on their collective

strength. Refl ecting the

unprecedented crisis,

2021’s was the largest

allocation of SDRs

ever. Countries are

using the funds to help

meet vital needs in this

pandemic, from Senegal

increasing vaccine

production capacity to

Haiti fi nancing critical

imports.

So how did we make

it happen? First, we

worked with all our

members. With so many

countries, agreement

requires intensive

dialogue and diplomacy.

It is a tribute to the spirit

of cooperation that we

all concluded this was

the right thing to do at

the right time to help the

entire world.

Second, we worked

with other international

institutions. This

In August 2021, the 190
member countries of the
International Monetary
Fund—working
together to tackle the
pandemic, a crisis like
no other—delivered
an achievement like
no other: a historic
$650 billion injection
of Special Drawing
Rights (SDRs) to help
the global economy, and
especially nations that
are suffocating amid
COVID-19 lockdowns.
SDRs are an
economic asset created
by the IMF to strengthen
countries’ foreign-
exchange reserves. A
new allocation of them
is rare; the last one, in
2009, was aimed at
recovery from the global
fi nancial crisis. Most
people don’t know what
SDRs are, but millions
benefi t from their
existence. Put simply,
the IMF distributes
additional reserves to

includes development

banks like the African

Development Bank

with the regional

expertise and capacity

to help ensure the

SDRs “hit the ground

most effectively,” as its

president, Akinwumi

Adesina, has said.

Third, we worked

with wealthier members

to amplify the benefi ts

of the SDRs, which are

allocated by countries’

shares in the IMF. While

about $275 billion

went to emerging

and developing

nations—with new

SDRs amounting to as

much as 6% of GDP

for some—the most

vulnerable need more.

That’s why we urge

members with strong

reserves to voluntarily

channel SDRs to

poorer countries.

IMF members also

established a trust

through which

SDRs can help

vulnerable countries

not only recover but

also build forward

better, addressing

crucial challenges like

climate change.

This SDR allocation

is a historic example

of global collaboration

at its best: countries

coming together to help

each other-—and to

help people—in a time

of need.

DIRECTOR-GENERAL,

WORLD HEALTH

ORGANIZATION

THE

COLLABORATION

I’M MOST

PROUD OF

Leaders from the

worlds of policy,

business, the

arts and advocacy

share their

most powerful

partnerships

Kristalina
Georgieva

MANAGING
DIRECTOR, IMF