IMF Special Drawing Rights and Economic Aid to Less Developed Countries

1973 ◽  
Vol 49 (3) ◽  
pp. 358-376
Author(s):  
M. Polasek
Keyword(s):  
Developed Countries ◽  
Less Developed Countries ◽  
Special Drawing ◽  
Economic Aid ◽  
Special Drawing Rights

Allocative Inefficiency of Special Drawing Rights (SDRs): Issues and Challenges of International Political Economy

2018 ◽  
Vol 4 (02) ◽  
Author(s):  
Hitesh Kumar BThakkar
Keyword(s):  
International Political Economy ◽  
Weight Ratio ◽  
Weighted Average ◽  
Voting Rights ◽  
International Economic Order ◽  
Developed Countries ◽  
Least Developed Countries ◽  
Special Drawing ◽  
Special Drawing Rights ◽  
The Imf

When the global monetary system faced the problem of inadequate supply of gold reserves, it led to the emergence of new paper gold in the form of Special Drawing Rights (SDRs). SDRs are used by member nations of IMF for a wide variety of transactions on IMF’s Operations Division and Administered Accounts in proportion to their quotas. Lately, the IMF has been subjected to extensive criticism on issues of recent allocation of SDRs and the related weighted voting rights. At present, the SDRs measurement is based on weighted average and a significant size of SDRs quota is allocated to developed countries due to their higher weight ratio. The SDRs quota allocated to developing and least developed countries is insufficient because they possess low weight ratio and low value. Further, the IMF does not follow the universal membership in which one country get one vote right; these allocated SDRs reflect the voting power of member nations. If a few countries with high SDRs collude with one another, it can lead to a decision favouring these countries due to a high percentage of voting rights with them. This could also result in these countries having their own representatives in the highest decision-making body, i.e. Board of Governors. This paper argues that the method of quota allocation needs to be reworked for better allocative efficiency purpose, to achieve a progressive and inclusive international economic order.

scholarly journals Special Drawing Rights: International Monetary Support for Developing Countries in Times of the COVID-19 Crisis

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Kevin Gallagher ◽  
José Antonio Ocampo ◽  
Ulrich Volz
Keyword(s):  
Developing Countries ◽  
Emerging Economies ◽  
Developed Countries ◽  
International Liquidity ◽  
Exogenous Shock ◽  
Health Crisis ◽  
Special Drawing ◽  
Emerging And Developing Countries ◽  
Special Drawing Rights ◽  
The International Monetary Fund

AbstractA major issuance of special drawing rights (SDRs) through the International Monetary Fund would be a key tool to provide financial support to developing and emerging economies and limit the economic and financial fallout of the COVID-19 crisis. SDRs are an unconditional resource, and the case for such an allocation is very strong during an exogenous shock, such as the current one. An SDR allocation would enhance the international liquidity in the hands of emerging and developing countries, so that public responses to the health crisis are not imperilled by financial crises. Close to two-fifths of a new SDR allocation would directly go to developing and emerging economies. In addition, a new mechanism should be created through which countries that do not need their SDR allocation lend them to the IMF, to increase the Fund’s lending capacity. Developed countries can also allocate the SDRs they do not use for official development assistance.

'Restrictive Business Practices', report by the UNCTAD Secretariat, April 1972.

1973 ◽  
Vol 12 (3) ◽  
pp. 315-316
Author(s):  
G. M. Radhu
Keyword(s):  
Multinational Corporations ◽  
World Trade ◽  
Developed Countries ◽  
Business Practices ◽  
Less Developed Countries ◽  
International Firms ◽  
The World ◽  
The Sixties ◽  
Financial Power ◽  
Administrative Structures

The report by the UNCTAD Secretariat, submitted to the third session of the United Nations Conference on Trade and Development held in Santiago (Chile) in April 1972, deals with the restrictive business practices of the multinational corporations with special reference to the export interests of the developing countries. Since the world war, there has been a tremendous growth in the size and activities of many international firms. They have grown from the national corporation to the multidivisional corporation and now to the multinational corporation. With each step they acquired greater financial power, better technology and know-how and more complex administrative structures. They have subsidiaries and branches all over the world. In the course of the sixties they became one of the dominant factors in determining the pattern of world trade. At the same time, their increasingly restrictive business practices, which tended to adversely affect world trade and the export interest of less developed countries, attracted the attention of the governments both in developed and less developed countries and serious concern was shown at the international level. It is against this background that the UNCTAD undertook the study on the question of restrictive business practices.

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