News & Media

Response to global hunger catastrophically inadequate

May 9, 2022

Today’s “Global Report on Food Crises” – led by the UN along with 16 partner organisations including Oxfam – says that more than 193 million people across 53 countries are experiencing acute hunger and require urgent food, nutrition and livelihoods assistance.

Oxfam Global Food Security and Livelihoods expert, Emily Farr, said:

“It is deeply concerning to find extreme hunger increasing to a magnitude never seen before. 40 million more people have been pushed to extreme hunger, nearly a 25 percent surge since last year, and 80 percent since 2016. But tragically, this comes as no surprise. Even as the alarm bells have been sounding, governments across the globe collectively failed to tackle this mass suffering and deprivation.

“There are no more excuses. All the warnings are there for countries facing famine-like conditions such as Ethiopia, South Sudan and Yemen. The world has the tools that have anticipated this worsening hunger, and yet continues to choose not to act fast or adequately enough.

“G7 governments and the EU have pledged US$2.6 billion into the UN’s humanitarian appeals to date but these pale in comparison to the promises they made last year to commit $8.5 billion to end famine. To make matters even worse, some rich countries have effectively cut some of their humanitarian aid to countries facing mass hunger, malnutrition and starvation such as Mali and Syria, as they diverted aid to other crises.

“Global crises, worsened by the economic turmoil of COVID-19 and more recently by the Ukraine conflict, have pushed food prices to an all-time high in March 2022 – up by 12.6 percent over February – which is putting food ever more out of reach for millions of people.

“Mariam, a Somali girl suffering severe malnutrition, has done nothing to cause a global pandemic, the Ukraine war or the climate crisis. Yet governments responsible for these crises have largely chosen to forget Mariam and millions of children like her.

“Hunger, in a world of plenty, is an avoidable tragedy. Rich countries can save millions of people if they immediately fund the UN global appeals. They can save lives now. Warring parties can help avert hunger by allowing aid to reach those at risk of dying from food insecurity and malnutrition.

“G7 nations also must meet their responsibilities to cut their CO2 emissions. They are most responsible for the climate crisis which is causing chaos for farming and agricultural systems, and driving hunger and displacement. They should pay low-income countries for the loss and damage they are suffering, and to help smallholder farmers – especially female farmers – to adapt to climate change. This is not a matter of charity, but rather a question of justice.”

Notes to the editors

The Global Report for Food Crises is an annual report published by The Global Network for Food Crises which is an international alliance of the United Nations, the European Union, governmental and non-governmental agencies working to tackle food crises together.
New OECD data shows that overall aid spending from 30 OECD members summed 179 billion dollars in 2021. Rich countries only committed 0.33 percent of their gross national income (GNI) to development aid, the same as 2020, and well below the 0.7 percent they promised back in 1970. In 2021, just 5 countries – Luxembourg, Norway, Germany, Sweden and Denmark – have lived up to this promise.
Recently, Oxfam has expressed concern that some donor governments are already shifting aid budgets to pay for Ukrainian assistance and the costs of hosting more than 4.5 million people who have fled the country recently. Compared to 2020, aid for hosting refugees has not changed and is stabilising at 5.2 percent since its peak in 2016 when it amounted to 11 percent of aid. The current statistics do not take into account 2022 aid which has seen this shift towards aid diversion.

Big pharma urged to address vaccine inequity

April 29, 2022

In separate virtual addresses to the shareholders of Moderna, Pfizer, and Johnson & Johnson (JNJ), Oxfam called on the pharmaceutical corporations to improve COVID-19 vaccine equity and access so that everyone, everywhere has access to these life-saving shots.

Oxfam’s resolutions to Moderna and Pfizer call on the companies to study the feasibility of transferring vaccine technology and know-how to urgently ramp up production and improve sustainable access around the world. In a separate resolution before Johnson & Johnson shareholders, Oxfam seeks transparency on how the company determines pricing for its COVID vaccines in light of the billions of dollars of public funding from US taxpayers the company received.

Oxfam has urged all three vaccine manufacturers to share their technical know-how with the World Health Organization (WHO) to leverage the world’s full manufacturing capacity and support regionally based production as a means to increase the overall supply, reduce on-the-ground distributional challenges, and respond to the desire of low-and middle-income countries to produce doses for their own citizens.

“If Moderna worked with us, we could submit the WHO’s COVID-19 Vaccine mRNA Technology Transfer hub’s vaccine for approval at least one year sooner, which would save lives, decrease the risk of variants, and reduce the pandemic’s economic toll,” said Dr. Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization, in his unprecedented presentation of the Oxfam resolution to Moderna shareholders via a pre-recorded statement. “We urge Moderna to share technology and know-how with the WHO hub and commit to not enforcing patents for COVID-19 and other essential vaccines in countries hosting the WHO hub and spokes. We also urge them to offer training to scientists working on those efforts through the Moderna mRNA access program.”

“We are in the midst of the greatest public health crisis in 100 years. Despite safe and effective vaccines like Pfizer’s, thousands of people are still dying every day because protections against the coronavirus have not been made accessible to all,” said Ady Barkan, Founder and Co-Executive Director of Be A Hero, presenting the Oxfam resolution to Pfizer shareholders via recording. “Billions of people remain unvaccinated in part because Pfizer cannot produce enough doses on its own. And yet, Pfizer refuses to share its technology to boost global manufacturing.”

JNJ’s COVID-19 vaccine has protected people against severe illness and saved lives—yet the company has not done enough to ensure equitable access and transparency about its pricing strategy, despite the massive investment of 1.5 billion dollars in public funds that JNJ received,” said Maaza Seyoum, Global South Convener, People’s Vaccine Alliance, presenting the Oxfam resolution to Johnson & Johnson shareholders via recording. “This injustice has heartbreaking consequences. Millions of grandparents and healthcare workers across Africa are not protected from this virus. In India alone, over two million children have lost a parent to the pandemic. These lives matter.”

Oxfam filed the shareholder resolutions because more than two years into the COVID-19 pandemic and a year after the introduction of highly effective life-saving vaccines, 74 percent of people in high-income countries are fully vaccinated, while just 12 percent of people in low-income countries are.

The failure of major pharmaceutical companies to do more to ensure vaccine equity and access threatens the companies’ reputations and the interests of corporate investors who are impacted by the pandemic’s continued impact on the global economy, in addition to the devastating toll in illness and death.

“Moderna, Pfizer, and Johnson & Johnson have prioritized short-term profit-making over long-term sustainability and reputational risks, as well as public health needs. The flawed donation-based model has produced vast vaccine inequity, despite the desire, willingness, and ability for countries around the world to produce their own doses for their own citizens,” said Abby Maxman, President and CEO of Oxfam America. “We are proud to partner with Dr. Tedros, Ady Barkan, and Maaza Seyoum to urge shareholders to realize that a model based on tech sharing and local production will not only help end the current pandemic but also make the world more resilient for the future.”

Significant number of Moderna and Pfizer shareholders support vaccine technology transfer

April 29, 2022

An Oxfam resolution before Moderna shareholders received 24% of the nominal vote, or 29% of the independent vote factoring in the 17% of the vote share owned by the company’s directors and senior executives. A similar resolution before Pfizer shareholders garnered 27% of the vote.

The unprecedented Oxfam resolutions, introduced at the Moderna Annual General Meeting today by Dr. Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization and by Ady Barkan, Founder and Co-Executive Director of Be A Hero at the Pfizer Annual General Meeting, urged the companies to study the feasibility of transferring vaccine technology and know-how to urgently ramp up production and improve sustainable access around the world.

In reaction to the votes, Robbie Silverman, Oxfam America’s Senior Manager of Private Sector Advocacy, made the following statement:

“We are pleased to see that nearly 30% of Moderna and Pfizer’s investors agree that the companies should explore the feasibility of transferring its technology to spur manufacturing in low- and middle-income countries. This is the first time that shareholders have voted for a resolution like this on any company proxy ballot.

“Unprecedented risks posed by an unprecedented global pandemic call for novel solutions – and a significant number of Moderna shareholders agree with the bold action we proposed.

“Only 12% of people in low-income countries are vaccinated today– as Dr. Tedros said, this is a “failure of humanity” and threatens the health of all of us, as new variants continue to emerge.

“The countries most impacted are clear on what they believe is the best and most effective way to vaccinate their own citizens – transferring the technology and investing in locally-based manufacturing.

“By every metric, the current donations-based model has failed – it leaves countries at the mercy of rich countries and profit-driven countries; exacerbates on-the-ground distributional challenges; and leaves the world with the same inequities and vulnerabilities that have plagued the global response since the start of the pandemic.

“We believe this strong vote share demonstrates that a significant number of Moderna and Pfizer’s shareholders recognize that the only sustainable way to end the pandemic is to leverage the world’s full manufacturing capacity as quickly as possible. We call on these companies to actively collaborate with the WHO to use every possible tool to combat the scourge of COVID-19, save lives, and restore public health and the global economy.”

At its Annual General Meeting, Johnson & Johnson did not announce vote totals for the resolutions it faced, including Oxfam’s resolution, introduced by Maaza Seyoum, Global South Convener, People’s Vaccine Alliance, calling on the company to be more transparent about its pricing for its COVID vaccines in light of the billions of dollars of public funding from US taxpayers. The company has four days to file that information with the Securities and Exchange Commission.

Demands for austerity and spiralling debt are ‘sabotaging’ Africa’s Covid-19 recovery

April 19, 2022

43 African governments are facing expenditure cuts totalling $183 billion (equivalent to 5.4 percent of GDP) over the next five years, reveals new analysis from Oxfam and Development Finance International (DFI) today. If these cuts are implemented, their chances of achieving the UN’s Sustainable Development Goals will likely disappear.

The Commitment to Reducing Inequality Index: Africa Briefing Paper shows that Africa’s debt burden is stifling post-COVID economic recovery and stagnating the public services necessary to reduce poverty and inequality. Africa’s debt burden has been climbing steadily, averaging 67 percent of GDP in 2021. Debt repayments are equivalent to 51 percent of African countries’ budget revenue and 22 times more than their spending on social protection. Debt servicing exceeds spending on healthcare in all but six African countries, rising to 77 times more in South Sudan. The G20 countries have so far offered little relief: debt cancellation or suspension amounts to just $9.3 billion.

‘‘Majority of African governments know and want to lift their citizens from poverty but their coffers are empty, so they need support instead of more pressure,’’ said Peter Kamalingin, Oxfam’s Pan Africa Program director. ‘‘At a time when poor countries are faced with increasing costs of living and with poor people unable to afford food, it cannot be the time to suffocate them with more austerity. That is the surest way to undermine recovery, widen inequality and destroy livelihoods.’’

The index ranks 47 African countries on their policies on public services, tax and workers’ rights. South Africa ranks first, followed by Seychelles, Tunisia, Namibia and Lesotho. At the bottom are South Sudan, Nigeria, Chad, Liberia and the Central African Republic. North Africa outperforms Africa’s other subregions, with Central Africa ranking last.

The analysis shows that African governments’ failure to tackle inequality ― through support for public healthcare and education, workers’ rights and a fair tax system ― left them woefully ill-equipped to tackle the COVID-19 pandemic. The IMF has contributed to these failures by consistently pushing a policy agenda that seeks to balance national budgets through cuts to public services, increases in taxes paid by the poorest, and moves to undermine labour rights and protections. As a result, when COVID-19 struck, 52 percent of Africans lacked access to healthcare and 83 percent had no safety nets to fall back on if they lost their job or became sick.

Quality public services are proven to reduce inequality. For example, they have reduced inequality by 34 percent in Namibia, 22 percent in South Africa and 19 percent in Benin. However, Africa’s unfair tax system is increasing inequality by 1 percent. In Tanzania and Tunisia, fair tax policies have slashed inequality by 10 percent.

Oxfam and DFI are urging the G20 to reallocate and waive off unnecessary conditionalities so that lower-income countries can access most of the $100 billion worth of IMF Special Drawing Rights (SDRs) with ease. They are calling for increased aid flows to Africa to increase access to inequality-busting public services and COVID-19 vaccines. The vaccination rate in Africa needs to increase significantly if the continent is to meet the 70 percent vaccine coverage target set for June 2022.

‘‘That some governments have fared better than others at tackling inequality confirms we can end inequality if we make the right policy decisions. This must include taxing the wealthiest, curbing illicit financial flows, restructuring debt held by poor countries and ending the pandemic through equitable access to COVID-19 Vaccines and therapeutics.’’ ― Peter Kamalingin.

Notes to editors

Download Oxfam’s Commitment to Reducing Inequality Index: Africa.

Our analysis of the IMF’s COVID-19 loans during the first year of the pandemic is also available for download.

IMF must abandon demands for austerity as cost-of-living crisis drives up hunger and poverty worldwide

April 19, 2022

87 percent of the International Monetary Fund’s (IMF) COVID-19 loans are requiring developing countries that have been denied equal access to vaccines and are facing some of the world’s worst humanitarian crises to adopt tough, new austerity measures that will further exacerbate poverty and inequality.

New analysis by Oxfam finds that 13 out of the 15 IMF loan programs negotiated during the second year of the pandemic require new austerity measures such as taxes on food and fuel or spending cuts that could put vital public services at risk. The IMF is also encouraging six additional countries to adopt similar measures.

In 2020, the IMF deployed billions in emergency loans to help developing countries cope with COVID-19, often with few conditions or none at all. Recently, IMF chief Kristalina Georgieva urged Europe not to endanger its economic recovery with “the suffocating force of austerity”. Yet, over the past year, the IMF has gone back to imposing austerity measures on lower-income countries.

“This epitomizes the IMF’s double standard: it is warning rich countries against austerity while forcing poorer ones into it. The pandemic is not over for most of the world. Rising energy bills and food prices are hurting poor countries most. They need help boosting access to basic services and social protection, not harsh conditions that kick people when they are down”, said Nabil Abdo, Oxfam International’s Senior Policy Advisor.

Kenya and the IMF agreed a US$2.3 billion loan program in 2021, which includes a three-year public sector pay freeze and increased taxes on cooking gas and food. More than 3 million Kenyans are facing acute hunger as the driest conditions in decades spread a devastating drought across the country. Nearly half of all households in Kenya are having to borrow food or buy it on credit.
9 countries including Cameroon, Senegal and Surinam are being required to introduce or increase the collection of value-added taxes (VAT), which often apply to everyday products like food and clothing, and fall disproportionately on people living in poverty.
Sudan, where nearly half of the population is living in poverty, has been required to scrap fuel subsidies which will hit the poorest hardest. The country was already reeling from international aid cuts, economic turmoil and rising prices for everyday basics such as food and medicine before the war in Ukraine started. Over 14 million people need humanitarian assistance (almost one in every three people) and 9.8 million are food insecure in Sudan, which imports 87 percent of its wheat from Russia and Ukraine.
10 countries including Kenya and Namibia are likely to freeze or cut public sector wages and jobs, which could mean lower quality of education and fewer nurses and doctors in countries already short of healthcare staff. Namibia had fewer than six doctors per 10,000 people when COVID-19 struck.

New analysis by Oxfam and Development Finance International (DFI) also published today reveals that 43 out of 55 African Union member states face public expenditure cuts totaling US$183 billion over the next five years. If these cuts are implemented, their chances of achieving the UN’s Sustainable Development Goals will likely disappear. In 2021, an Oxfam review of IMF COVID-19 loans showed that the Fund encouraged 33 African countries to pursue austerity policies in the aftermath of the health crisis. The pandemic has not ended but these policies are already taking shape across Africa.

The analysis also shows that African governments’ failure to tackle inequality ― through support for public healthcare and education, workers’ rights and a fair tax system ― left them woefully ill-equipped to tackle the COVID-19 pandemic. The IMF has contributed to these failures by consistently pushing a policy agenda that seeks to balance national budgets through cuts to public services, increases in taxes paid by the poorest, and moves to undermine labor rights and protections. As a result, when COVID-19 struck, 52 percent of Africans lacked access to healthcare and 83 percent had no safety nets to fall back on if they lost their job or became sick.

“The IMF must suspend austerity conditions on existing loans and increase access to emergency financing. It should encourage countries to increase taxes on the wealthiest and corporations to replenish depleted coffers and shrink widening inequality. That would actually be good advice”, said Abdo.

Notes to editors

Download Oxfam and DFI’s “Commitment to Reducing Inequality Index: Africa”. Our analysis of the IMF’s COVID-19 loans during the first year of the pandemic is also available for download.

Oxfam estimates that over a quarter of a billion more people could crash into extreme levels of poverty in 2022 because of COVID-19, rising global inequality and the shock of food price rises supercharged by the war in Ukraine. For more information, download Oxfam’s brief “First Crisis, Then Catastrophe”.

The IMF negotiated 22 COVID-19 loans with 23 countries between 15 March 2021 and 15 March 2022. 15 are loan programs that came with a full suite of conditionality or policy requirements, six are conditionality-free emergency financing and one is a Flexible Credit Line that does not usually include conditionalities. The IMF’s USUS$1.4 billion (SDR 1,005.9 million) disbursement to Ukraine was not included in Oxfam’s analysis, as it intended to help meet urgent financing needs and mitigate the economic impact of the war.

In December 2021, IMF managing director Kristalina Georgieva told Euronews that the European Union should not put economic recovery in danger with “the suffocating force of austerity”. The IMF’s own research shows austerity worsens poverty and inequality.

Photographs and video from East Africa are available. As many as 28 million people across East Africa at risk of extreme hunger. West Africa is facing its worst food crisis in ten years, with over 27 million people suffering from hunger.

According to Sudan’s latest household survey (2014), 44 percent of the population lives in poverty. However, this data does not reflect the impacts of the recent economic decline, high inflation and recent flooding. The IMF estimates that the ongoing economic crisis, exacerbated by COVID-19, will likely have significantly negative effects on living conditions and poverty.

According to the World Food Program, 9.8 million people in Sudan are food insecure. 14.3 million are estimated to need humanitarian assistance in 2022 — the highest in the past decade.

According to the World Bank, Namibia had 0.59 doctors per 1,000 people before the pandemic began.

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“Terrifying prospect” of over a quarter of a billion more people crashing into extreme levels of poverty and suffering this year

April 12, 2022

Over a quarter of a billion more people could crash into extreme levels of poverty in 2022 because of Covid-19, rising global inequality and the shock of food price rises supercharged by the war in Ukraine, reveals a new Oxfam brief today.

“First Crisis, Then Catastrophe”, published ahead of the World Bank and IMF Spring Meetings in Washington DC, shows that 860 million people could be living in extreme poverty — on less than US$1.90 a day — by the end of this year. This is mirrored in global hunger: the number of undernourished people could reach 827 million in 2022.

The World Bank had projected COVID-19 and worsening inequality to add 198 million extreme poor during 2022, reversing two decades of progress. Based on research by the World Bank, Oxfam now estimates that rising global food prices alone will push 65 million more people into extreme poverty, for a total of 263 million more extreme poor this year —equivalent to the populations of the UK, France, Germany and Spain combined.

“Without immediate radical action, we could be witnessing the most profound collapse of humanity into extreme poverty and suffering in memory,” said Oxfam International Executive Director Gabriela Bucher. “This terrifying prospect is made more sickening by the fact that trillions of dollars have been captured by a tiny group of powerful men who have no interest in interrupting this trajectory.”

As many people struggle now to cope with sharp cost-of-living increases, having to choose between eating or heating or medical bills, the likelihood of mass starvation faces millions of people already locked in severe levels of hunger and poverty across East Africa, the Sahel, Yemen and Syria.

The brief notes that a wave of governments is nearing a debt default and being forced to slash public spending to pay creditors and import food and fuel. The world’s poorest countries are due to pay US$43 billion in debt repayments in 2022, which could otherwise cover the costs of their food imports. Global food prices hit an all-time high in February, surpassing the peak crisis of 2011. Oil and gas giants are reporting record-breaking profits, with similar trends expected to play out in the food and beverage sector.

People in poverty are being hit harder by these shocks. Rising food costs account for 17 percent of consumer spending in wealthy countries, but as much as 40 percent in Sub-Saharan Africa. Even within rich economies, inflation is super-charging inequality: in the US, the poorest 20 percent of families are spending 27 percent of their incomes on food, while the richest 20 percent spend only 7 percent.

For most workers around the world, real-term wages continue to stagnate or even fall. The effects of COVID-19 have widened existing gender inequalities too — after suffering greater pandemic-related job losses, women are struggling to get back to work. In 2021, there were 13 million fewer women in employment compared to 2019, while men’s employment has already recovered to 2019 levels.

The report also shows that entire countries are being forced deeper into poverty. COVID-19 has stretched all governments’ coffers but the economic challenges facing developing countries are greater, having been denied equitable access to vaccines and now being forced into austerity measures.

Despite COVID-19 costs piling up and billionaire wealth rising more since COVID-19 than in the previous 14 years combined, governments — with few exceptions — have failed to increase taxes on the richest. An annual wealth tax on millionaires starting at just 2 percent, and 5 percent on billionaires, could generate US$2.52 trillion a year —enough to lift 2.3 billion people out of poverty, make enough vaccines for the world, and deliver universal healthcare and social protection for everyone living in low- and lower middle-income countries.

“We reject any notion that governments do not have the money or means to lift all people out of poverty and hunger and ensure their health and welfare. We only see the absence of economic imagination and political will to actually do so,” Bucher said.

“Now more than ever, with such scale of human suffering and inequality laid bare and deepened by multiple global crises, that lack of will is inexcusable and we reject it. The G20, World Bank and IMF must immediately cancel debts and increase aid to poorer countries, and together act to protect ordinary people from an avoidable catastrophe. The world is watching”.

Oxfam is calling for urgent action to tackle the extreme inequality crisis threatening to undermine the progress made in tackling poverty during the last quarter of a century:

Introduce one-off and permanent wealth taxes to fund a fair and sustainable recovery from COVID-19. Argentina adopted a one-off special levy dubbed the ‘millionaire’s tax’ that has brought in around US$2.4 billion to pay for pandemic recovery.
End crisis profiteering by introducing excess profit taxes to capture the windfall profits of big corporations across all industries. Oxfam estimated that such a tax on just 32 super-profitable multinational companies could have generated US$104 billion in revenue in 2020.
Cancel all debt payments for developing countries that need urgent help now. Cancelling debt would free up more than US$30 billion in vital funds in 2022 alone for 33 countries already in or at high risk of debt distress.
Boost aid and pay for Ukrainian assistance and the costs of hosting refugees with new funding, rather than shift aid funds earmarked for other crises in poorer countries.
Reallocate at least US$100 billion in Special Drawing Rights (SDR), without burdening countries with new debt or imposing austerity measures. The G20 promised to deliver US$100 billion in recycled SDRs but only US$36 billion has been committed to date. A new SDR issuance should also be considered and distributed based on needs rather than countries’ quota shares at the IMF.
Act to protect people from rising food prices, and create a Global Fund for Social Protection to help the poorest countries provide essential income security for their populations, and maintain these services in times of severe crisis.

Notes to editors

Download Oxfam’s briefing “First Crisis, Then Catastrophe”.

The World Bank defines extreme poverty as living on less than US$1.90 per day.

The World Bank projected that COVID-19 will increase the number of people living in extreme poverty by 198 million people in 2022. This projection assumes that the Gini coefficient of income inequality will increase by two percent in all countries. The IMF, World Bank and OECD agree that COVID-19 is highly likely to drive up inequality.

New Oxfam estimates, building on World Bank projections and prior research conducted by the World Bank and Center for Global Development on food price spikes, show that 65 million more people could be pushed below the US$1.90 poverty line because of the harsh increases in food prices. See “First Crisis, Then Catastrophe” for more information.

Population of Germany (83 million), France (67 million), the UK (67 million) and Spain (47 million) from the World Bank. Total: 264 million.

Photographs and video from East Africa are available. As many as 28 million people across East Africa at risk of extreme hunger.

Data on debt servicing is from UNCTAD. FAO estimates food import bills for all low-income countries to be $46 billion (2021).

The COVID-19 crisis cost women around the world at least $800 billion in lost income in 2020, equivalent to more than the combined GDP of 98 countries.

Billionaires’ wealth has risen more since COVID-19 began than it has in the last 14 years combined.

Download “Taxing Extreme Wealth” for more information about an annual tax on the world’s millionaires and billionaires, what it would raise and what it could pay for.

Argentina has collected 223 billion pesos (around $2.4 billion) from its one-off pandemic wealth tax.

Oxfam estimated that a ‘Pandemic Profits Tax’ on 32 super-profitable global companies could have generated $104 billion in revenue in 2020 to address COVID-19. Download Oxfam’s report “Power, Profits and the Pandemic” for more information.

Some governments are contemplating raids on aid funds earmarked for other crises to pay for the new costs of Ukrainian support. Oxfam is aware that the EU has more than halved its humanitarian funding to Timor-Leste, for example, and that some donors have indicated that they will cut their aid to Burkina Faso by 70 percent, with other West African countries hearing similar news. At the same time, West Africa is facing its worst food crisis in ten years, with over 27 million people suffering from hunger.

SDRs are distributed based on countries’ quota shares at the IMF. As such, the US$650 billion SDR issuance delivered almost US$400 billion in added reserves to the world’s richest economies, US$230 billion to middle-income countries, and US$21 billion to low-income countries. Last October, G20 countries pledged to reallocate $100 billion in SDRs to “vulnerable countries whose economies have been hard hit by the COVID-19 crisis.”