Transparency of historic SDRs to support the global and Cambodian recovery of Covid-19
The IMF Governing Council approved in early August a general allocation of the largest Special Drawing Rights (SDRs) in history, equivalent to $ 650 billion (about SDR 456 billion), to boost global liquidity. Cambodia will receive a portion of 0.24 billion, according to an Oxfam press release today.
“The new SDRs will help developing countries, including Cambodia, cope with the impact of Covid-19 and restore its economy. The Royal Government of Cambodia (RGC) has gone to great lengths to contain the transmission of the virus and has supported vulnerable populations facing loss of livelihoods through its historic cash transfer program that relies on its system social register in development. More needs to be done, and we ask the RGC to continue to work transparently and with other civil society organizations to ensure that this additional debt-free funding is used for the benefit of all Cambodians affected by Covid-19. , for example, by prioritizing it universally. investments in health care and social protection that can reduce inequalities for a fairer and more sustainable recovery from the pandemic ”, Ms. Solinn Lim, country director of Oxfam in Cambodia.
The informal sector now accounts for 87.5% of the Cambodian economy (ILO, 2021) and the Planning Ministry has warned that 6 million informal workers risk losing their livelihoods as the pandemic persists. Thus, it is imperative that the RGC places particular emphasis of its assistance program on supporting workers in the informal economy and micro, small and medium-sized enterprises which are the backbone of the Cambodian economy.
“We commend the RGC for its efforts to ensure that vulnerable groups such as women and girls facing sexual and gender-based violence, pregnant women, children, people with disabilities, indigenous peoples and ethnic minorities, people living with HIV / AIDS, the homeless, and returning migrants, are beneficiaries of the Covid-19 relief program, and we encourage the RGC to take advantage of this SDR to strengthen this support and render its intervention in the event of historically inclusive pandemic. Cambodians, especially the most vulnerable groups, will remember this heritage, ”said Ms. Solinn Lim.
SDRs are a form of global currency that can be injected into the global economy, with non-refundable allocations given to each member country of the International Monetary Fund (IMF). They do not constitute a loan to be repaid and their use is decided by the host countries.
The new SDRs will come into effect on August 23, 2021. They are distributed based on a country’s quota / share in the IMF. The $ 650 billion SDR issue will bring nearly $ 400 billion in additional reserves to the world’s richest economies, $ 230 billion to middle-income countries and $ 21 billion to low-income countries. Heng Panha – AKP