How Effective Was Assistance to the Vulnerable Countries During the Pandemic? Comparing the Debt Service Suspension Initiative and Special Drawing Rights

This paper compares the actual and potential resources derived from the G20’s Debt Service Suspension Initiative and the actual and potential resources from International Monetary Fund’s 2021 allocation of Special Drawing Rights. These programs were two main sources of support for 73 vulnerable countries during height of the COVID-19 pandemic. For these countries, Special Drawing Rights provided much greater potential support when compared to the Debt Service Suspension Initiative. Special Drawing Rights deployed more actual resources as well. When these programs are evaluated from the perspective of the countries receiving assistance, Special Drawing Rights are found to have several characteristics that are more desirable. As such, as a tool, Special Drawing Rights have several advantages that should be taken into account during discussions about policy responses to global challenges in the future.