{"id":160038,"date":"2022-07-14T13:47:35","date_gmt":"2022-07-14T13:47:35","guid":{"rendered":"https:\/\/www.one.org\/canada\/?post_type=one_press&#038;p=160038"},"modified":"2023-09-05T13:55:04","modified_gmt":"2023-09-05T13:55:04","slug":"g20-urged-to-clear-blockages-preventing-vulnerable-countries-accessing-vital-funds","status":"publish","type":"one_press","link":"https:\/\/www.one.org\/ca\/press\/g20-urged-to-clear-blockages-preventing-vulnerable-countries-accessing-vital-funds\/","title":{"rendered":"G20 URGED TO CLEAR BLOCKAGES PREVENTING VULNERABLE COUNTRIES ACCESSING VITAL FUNDS"},"content":{"rendered":"<ul>\n<li><b>1.5 billion people living in countries at highest risk of debt distress<\/b><\/li>\n<\/ul>\n<ul>\n<li><b>Common Framework on debt relief yet to deliver any support to countries requesting assistance\u00a0<\/b><\/li>\n<\/ul>\n<ul>\n<li><b>Low income countries yet to receive single dollar of channeled SDRs<\/b><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400\">Ottawa, ON <\/span><\/p>\n<p><span style=\"font-weight: 400\">14 July 2022 &#8211; G20 Finance Ministers must remove blockages that are preventing the world\u2019s poorest countries from accessing essential financial support, or risk fueling humanitarian emergencies and political instability. The call from anti-poverty organization, The ONE Campaign, comes as finance chiefs meet this weekend against a backdrop of global economic stagnation, rising prices and increasing food insecurity, driven by the aftershocks of COVID and Russia\u2019s invasion of Ukraine.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400\">ONE\u2019s latest research shows that these global crises are adding further pressures on the<\/span><a href=\"https:\/\/www.one.org\/africa\/issues\/covid-19-tracker\/explore-debt\/\"><span style=\"font-weight: 400\"> high number of low income countries that are at risk of bankruptcy<\/span><\/a><span style=\"font-weight: 400\">. Despite this situation, <\/span><a href=\"https:\/\/www.one.org\/africa\/issues\/covid-19-tracker\/explore-sdrs\/\"><span style=\"font-weight: 400\">vulnerable countries have still not benefited\u00a0 from billions of dollars of support through channeled Special Drawing Rights <\/span><\/a><span style=\"font-weight: 400\">that was promised in 2021. Meanwhile, a year and a half after its announcement, the Common Framework is yet to deliver the debt relief promised to indebted countries. Just Zambia, Ethiopia and Chad have applied and not one has received any relief.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400\">Further research released in the past week shows that 1.5 billion people \u2013 a fifth of the world\u2019s population &#8211; now live in the 25 countries at highest risk of debt distress, increasing the prospect of mounting political instability as more people become trapped in extreme poverty and are forced to go without basic food and provisions. ONE is urging the G20 to address this situation urgently, by accelerating efforts to support vulnerable countries and make faster progress on the process of <\/span><a href=\"https:\/\/www.one.org\/international\/policy\/unlocking-the-potential-of-mdbs\/\"><span style=\"font-weight: 400\">reforming multilateral development banks<\/span><\/a><span style=\"font-weight: 400\">, which could release up to $1 trillion in support for developing countries.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Edwin Ikhuoria, Executive Director for Africa at The ONE Campaign, said<\/b><span style=\"font-weight: 400\">: \u201cThe whole world is experiencing economic pressures at the moment &#8211; but for people in the poorest and most vulnerable nations these pressures could have devastating consequences.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400\">\u201cWe are already seeing an escalating food emergency in the aftermath of Russia\u2019s invasion of Ukraine. With countries also dealing with the aftershocks of the pandemic there is a real risk that millions more people will be plunged into the nightmare of extreme poverty.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400\">\u201cWealthy nations promised to do more to support vulnerable countries, but to date that support has not arrived where it is needed most. We urgently need to unblock the system and provide the investment and debt relief that will prevent these crises becoming a humanitarian catastrophe.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Ends-<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><b>Notes to editors<\/b><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Africa\u2019s debt service costs are at their highest in over a decade and, despite G20 initiatives like the DSSI and Common Framework, will remain so until at least 2025.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Debt service costs eat directly into government budgets, with many low income countries spending more on debt than health. Only 7 low income countries worldwide, and no African country, is categorised as low risk of debt distress.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">ONE\u2019s research on debt can be found <\/span><a href=\"https:\/\/www.one.org\/africa\/issues\/covid-19-tracker\/explore-debt\/\"><span style=\"font-weight: 400\">here<\/span><\/a><span style=\"font-weight: 400\">.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Special Drawing Rights (SDRs) are a reserve asset that sits within the IMF that every member country has access to. These reserve assets can be drawn on in times of need, by exchanging SDRs for hard currency (dollars, euros or yuan) from other members.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">SDRs are distributed in allocations by the IMF, the most recent of which took place in August 2021 when an allocation of $650 billion in SDRs was approved by the IMF Board. SDRs are allocated according to IMF quota shares, which means countries who have larger shares within the IMF receive a larger allocation.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">G20 countries received almost USD 443 billion in SDRs, with only USD 33 billion going to African countries. In 2021, the G20 reiterated a G7 commitment to channel USD 100 billion of their excess SDRs to the poorest countries. To date, just over 60% of that commitment has been met.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">ONE\u2019s tracking of SDR use and pledging is <\/span><a href=\"https:\/\/www.one.org\/africa\/issues\/covid-19-tracker\/explore-sdrs\/\"><span style=\"font-weight: 400\">here<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Recent <\/span><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-07-07\/why-developing-countries-are-facing-a-debt-default-crisis#xj4y7vzkg\"><span style=\"font-weight: 400\">research from Bloomberg<\/span><\/a><span style=\"font-weight: 400\"> ranks 25 countries as having the highest risk of debt distress based on a series of indicators (in order from highest debt vulnerability): El Salvador, Ghana, Tunisia, Pakistan, Egypt, Kenya, Argentina, Ukraine, Bahrain, Namibia, Brazil, Angola, Senegal, Rwanda, South Africa, Costa Rica, Gabon, Morocco, Ecuador, Turkey, Dominican Republic, Ethiopia, Columbia, Nigeria, Mexico. Using the UN\u2019s latest population data, 1.5 billion people live in these countries.<\/span><\/p>\n<div class=\"buffer\"><\/div>","protected":false},"excerpt":{"rendered":"<p>ONE\u2019s latest research shows that these global crises are adding further pressures on the high number of low income countries that are at risk of bankruptcy.<\/p>\n","protected":false},"author":10,"featured_media":0,"template":"","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"contributor":[],"class_list":["post-160038","one_press","type-one_press","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.8) - 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