President Paul Kagame has issued a rallying call to world leaders to further engage in reallocation of Special Drawing Rights (SDRs), based on need. The head of state was speaking at a session on sustainable development during the just concluded G20 Summit in Rome, Italy. The SDR is an international reserve asset, created by the International Monetary Fund (IMF) to supplement its member countries’ official reserves. Kagame said that the recently allocated SDRs by the IMF valued $650 billion is a positive step towards addressing liquidity shortfalls, despite the current need for more. He, decried however, that only $21 billion of these SDRs were channeled to low-income countries, citing that world leaders should forge ways of further reallocating the funds to the developing world. “This will result in a faster and more sustainable recovery from the pandemic for countries that do not have the ability to do fiscal and monetary stimulus,” Kagame said. He highlighted that extra fiscal space will support women and youth by providing them with skills and jobs, and put them back at the center of growth. “Even before the pandemic, the world was off track with the Sustainable Development Goals. Getting back on track will require focus and political commitment.” He added. Trade key to prosperity According to the head of state, restoring the ambition of the World Trade Organization is an imperative for us all, after years of stagnation in global trade negotiations. He asserted that as emphasized by the bloc’s director-general Ngozi Okonjo Iweala, the upcoming WTO ministerial conference next month is chance to come together and get some important things done. Kagame also commended the G20 compact with Africa launched under the German presidency in 2017. “Chancellor Merkel has sustained this initiative since then, creating new and productive links for Africa and with Africa, and we hope that this work will be carried forward.” Earlier in the day, Kagame also challenged world leaders on action in tackling climate change, noting that previous commitments have not always materialized. Kagame attended the G20 Summit in his capacity as chairperson for the AUDA-NEPAD Heads of State and Government Orientation Committee.
