African nations fall short in using SDRs for women: study
Despite legal frameworks in place, challenges persist, encompassing inadequate resources, lax enforcement of laws, gender-based violence, and deeply ingrained patriarchal norms.
LUSAKA, Zambia— A new report presented on Wednesday finds that an unprecedented $650 billion allocation in Special Drawing Rights (SDRs) by the International Monetary Fund (IMF) has not been adequately leveraged to promote gender equality in pandemic recovery for Sub-Saharan African nations, writes Winston Mwale.
The report by the African Women's Development and Communication Network (FEMNET) studied the use of SDRs in Kenya, Zambia, Malawi and Senegal. It found limited transparency and tracking of gender-focused spending.
The Background
The aftermath of the COVID-19 pandemic has left an indelible mark on global economies, with Sub-Saharan Africa (SSA) experiencing a profound impact, especially concerning existing gender disparities.
Responding to this challenge, the International Monetary Fund (IMF) introduced Special Drawing Rights (SDRs) as part of a suite of measures aimed at bolstering global liquidity and aiding the post-pandemic recovery.
In a groundbreaking move in 2021, the IMF sanctioned a historic USD 650 billion SDR allocation, significantly increasing SDR inflows to African nations, notably Kenya, Zambia, Malawi, and Senegal.
This surge in allocations sparked discussions on alternative SDR utilization, particularly in the pursuit of gender equality.
However, documentation regarding the use of SDRs remained limited and fragmented, especially in terms of targeted fiscal sector applications.
FEMNET, in response to this pressing need for clarity, conducted a comprehensive research endeavor focusing on these four African nations to investigate the optimal utilization of SDRs from a women's rights perspective.
Enoch Twinoburyo, an EJR Consultant involved in the study, emphasized the importance of leveraging SDRs to create equal opportunities for women, girls, and other vulnerable groups.
"In times of crisis, we need innovative measures to address not just economic recovery but to rectify gender disparities exacerbated by such upheavals," emphasized Twinoburyo.
"SDRs present an opportunity to strategically foster equality for women, girls, and other vulnerable groups."
The research, spearheaded by FEMNET, focused on Kenya, Zambia, Malawi, and Senegal, aiming to decipher the optimal utilization of SDRs from a women's rights perspective.
The findings uncovered a stark reality - fiscal deficits persisted across the case study countries, leading to a rapid escalation in public debt levels despite various initiatives aimed at post-COVID recovery.
"We've seen fiscal deficits widening and debt levels soaring, presenting substantial risks for these nations," Twinoburyo stated, underlining the urgency for sustainable financing sources.
"While the SDR allocations provided vital resources, they're a mere fraction of what's required for sustainable development," Twinoburyo added.
"There's an imperative need to address the burgeoning debt burden and simultaneously channel resources towards inclusive development."
Despite legal frameworks in place, challenges persist, encompassing inadequate resources, lax enforcement of laws, gender-based violence, and deeply ingrained patriarchal norms.
"We're witnessing a gradual shift, but the pace needs acceleration," Twinoburyo emphasized, highlighting the challenges impeding gender equality progress.
In terms of SDR utilization within the case study countries, the IMF's lack of specific expenditure conditions led to varied applications.
Kenya utilized its allocation to substitute foregone fiscal financing and bolster foreign exchange reserves, while Malawi utilized SDRs to rebalance financing and alleviate foreign exchange shortages.
Senegal allocated its SDRs towards forex reserves and general budget support, while Zambia directed its allocation to bolster reserves and fund social sector initiatives.
However, challenges persist regarding transparent usage of SDRs, explicit incorporation into appropriation and accounting documents, and the need for explicit gender-responsive budgeting.
"We need robust mechanisms to ensure transparency and effective utilization of SDRs, aligned with gender-responsive budgeting," Twinoburyo emphasized.
Twinoburyo stressed the urgency of collectively advocating for reforms, transparency, and more efficient allocations for SDRs, emphasizing the imperative need to strengthen gender-responsive budgeting practices.
"Inclusive economic recovery, supported by sustainable financing mechanisms, stands as the crucial engine for addressing these multifaceted challenges across SSA," he concluded.
As the dialogue on economic recovery and gender equality continues, the clarion call remains to ensure that financial measures serve not only economic recovery but also pave the way for a more equitable and inclusive future for all citizens, especially the marginalized and vulnerable segments of society.
*Below is the report:
