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The SDR Aid Link: It's Now or Never

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The international community, in the form of the United Nations and, more recently, the G20, has committed itself to the Millennium Development Goals. The global financial crisis of 2008/9 served to increase the economic problems faced by low-income countries, making it much less likely that the goals will be attained. At the same time, the decision has been made to reactivate the SDR scheme by making a new allocation of SDRs in order to create additional international liquidity. This article explores the idea of linking SDR creation with the provision of development assistance. Although the idea of a link is not original, contemporary global economic and political circumstances may generate an environment particularly conducive to the acceptance of the proposal.

Keywords: International Monetary Fund; SDRs; Special Drawing Rights; aid

Document Type: Research Article


Affiliations: Surrey Centre for International Economic Studies, University of Surrey, Guildford, GU2 7XH ( )., Email:

Publication date: 2010-01-01

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