August, 23 2021, 06:05pm EDT

For Immediate Release
Contact:
Tillie McInnis,Domestic Communications Coordinator,202-293-5380 x117,E-mail,Dan Beeton,International Communications Coordinator,202-239-1460,E-mail
As IMF Allocates $650 Billion Worth of Special Drawing Rights, Economists Say More Will Be Needed
The International Monetary Fund's allocation of $650 billion in Special Drawing Rights (SDRs) today is welcome, but much more will be needed to respond to the global challenges resulting from the COVID pandemic, which is spreading more rapidly due to the delta variant, Center for Economic and Policy Research (CEPR) Co-Director Mark Weisbrot said today.
WASHINGTON
The International Monetary Fund's allocation of $650 billion in Special Drawing Rights (SDRs) today is welcome, but much more will be needed to respond to the global challenges resulting from the COVID pandemic, which is spreading more rapidly due to the delta variant, Center for Economic and Policy Research (CEPR) Co-Director Mark Weisbrot said today.
"The global pandemic is already much worse than when the decision was made to distribute $650 billion worth of SDRs," Weisbrot said. "Vaccinations are still unavailable to most people in developing countries, due in large part to high-income countries allied with Washington intervening on behalf of intellectual property protections for the big drug companies, including blocking other countries from making more vaccines. The world will be facing ongoing or intermittent lockdowns, struggling businesses, people unable to work, overwhelmed health care systems, and incredible uncertainty. This allocation of SDRs is a major breakthrough, but it won't be enough."
If developing countries are not able to access additional resources, we can expect many more people to die unnecessarily -- not just from COVID, but also from the economic difficulties that these countries will experience. Weisbrot pointed out that economic research has shown a direct link between economic decline resulting from the pandemic and increased mortality.
According to the Bank for International Settlements, "Historical data show that recessions are systematically associated with higher mortality, especially in developing economies. Following a recession, death rates remain elevated for several years." Researchers at the BIS noted: "Countries with a stronger predicted GDP decline in 2020 [also saw] a larger number of deaths in excess of official Covid-19 fatalities."
"The international community can do much more to save lives by helping developing countries avoid economic crises and recover from negative shocks related to the pandemic," Weisbrot said. "SDRs are the quickest and most efficient means of assisting them in doing that, and at no cost to the United States."
The US House of Representatives recently passed legislation supporting an additional issuance of 1.54 trillion SDRs (worth 2.2 trillion dollars), and similar legislation is pending in the US Senate. Major humanitarian, labor, human rights, and faith-based groups including the AFL-CIO, Oxfam International, Amnesty International, Church World Service, the Teamsters, and the US Conference of Bishops have called on the IMF to allocate a total of $3 trillion worth of SDRs.
A new publication by CEPR Senior Research Fellow and economist Andres Arauz, published by the Red Latinoamericana por Justicia Economica y Social (LATINDADD), explains how developing countries can best put SDRs to use.
SDRs are assets that are used to supplement the international reserves of countries, thereby helping to stabilize their finances and avoid balance of payments crises, as well as other financial crises that can cause severe economic damage, increases in extreme poverty, and loss of life. They can also be exchanged for hard currency by countries in need and spent to import essential goods, including vaccines and medical equipment. The Congressional Budget Office has confirmed that SDR allocations are completely cost-free for the US government.
The Center for Economic and Policy Research (CEPR) was established in 1999 to promote democratic debate on the most important economic and social issues that affect people's lives. In order for citizens to effectively exercise their voices in a democracy, they should be informed about the problems and choices that they face. CEPR is committed to presenting issues in an accurate and understandable manner, so that the public is better prepared to choose among the various policy options.
(202) 293-5380LATEST NEWS
As Abbott Signs Texas Map Rigged for Trump, Missouri GOP Aims to Follow Suit
One critic said Texas Republicans' "reckless, partisan power grab will harm our democracy for years to come."
Aug 29, 2025
Democracy defenders on Friday blasted elected Texas Republicans, including Gov. Greg Abbott, after he signed a new congressional map gerrymandered for the GOP at the request of US President Donald Trump—and Missouri Gov. Mike Kehoe, for launching a copycat effort.
"Gov. Abbott would rather do Trump's dirty work than help the people of Texas," said Brett Edkins, managing director of policy and political affairs at the progressive advocacy group Stand Up America, in a statement.
"For months, he has ignored the real issues affecting Texans, including flood relief, and instead pandered to Trump's demand that he redraw Texas' political maps to rig the 2026 elections and silence communities of color," he continued. "Texas Republicans have started a nationwide redistricting arms race with no end in sight. Their reckless, partisan power grab will harm our democracy for years to come."
Abbott and state lawmakers have been open about aiming to help the GOP retain control of Congress during next year's midterm elections by passing their so-called "One Big Beautiful Map." The governor—who called two special legislative sessions to force through the bill—posted a video of himself signing it on social media and declared that "Texas will be more RED in Congress."
During the first legislative session, dozens of Democrats in the Texas House fled to blue states in a bid to block the map, but they ultimately returned to Austin. After GOP legislators passed the bill, the NAACP and the Lawyers Committee for Civil Rights Under Law filed a lawsuit over the map.
After the governor signed the bill on Friday, Texas Democratic Party Chair Kendall Scudder said in a statement that "with a stroke of the pen, Greg Abbott and the Republicans have effectively surrendered Texas to Washington, DC."
"They love to boast about how 'Texas Tough' they are, but when Donald Trump made one call, they bent over backwards to prioritize his politics over Texans. Honestly, it's pathetic," he said. "I am proud of the Texas Democrats in the House and Senate who chose to fight, whether by a constitutionally protected quorum break, questioning these mapmakers, trying to pass amendments, or even attempting to filibuster."
"This isn't over—we'll see these clowns in court," he pledged. "We aren't done fighting against these racially discriminatory maps, and fully expect the letter of the law to prevail over these sycophantic Republican politicians who think the rules don't apply to them."
The contested map makes five Texas districts for the US House of Representatives that are currently held by Democrats more favorable to Republicans.
While elected Democrats in states such as California have threatened to fight fire with fire and draw Republican congressional districts out of existence, GOP governors—under pressure from the president—have also moved to follow Texas' lead. For example, Missouri Gov. Mike Kehoe on Friday announced a special legislative session to pass his proposed "Missouri First Map."
Responding in a statement, Democratic National Committee (DNC) Chair Ken Martin said that "another Republican governor just caved to the demands of Donald Trump at the expense of Missouri families and American democracy. Time and time again, Missouri Gov. Mike Kehoe has undermined the voice of Missouri voters."
"Now he is attempting to dilute their power altogether by removing the ability of Missourians to stand up against this power grab," Martin continued. "Make no mistake: This all started because Trump and Republicans passed a historically unpopular budget bill that wrecks the working class to reward billionaires. Now, instead of facing the consequences of their votes, Republicans think they can just choose their voters—that's not how this works."
"As California has shown, Democrats are rising up to protect voters' sacred rights, and we're not pulling our punches," he added. "The DNC will stand with Democrats protecting the rights of all Americans as Donald Trump and spineless Republicans try to rig the game against the will of the people."
John Bisognano, president of the National Democratic Redistricting Committee, said that "over the past month, Missourians of all stripes, from proud union members to business leaders, have expressed their opposition to a mid-decade gerrymander, yet Missouri Republicans are choosing to take orders from Washington instead of their constituents."
"Republicans enacted the current congressional map in response to public pressure from Missouri voters," he said. "Their sudden reversal shows that their pursuit of a mid-decade gerrymander is nothing more than a power grab at the expense of the people. Heading into this special session, Missouri Republicans have a choice: They can listen to Missourians, who oppose a mid-decade gerrymander, or they can fold to Donald Trump's demands and face the same level of fierce resistance displayed in Texas."
Keep ReadingShow Less
Nearly 1,000 'Workers Over Billionaires' Protests Planned Across US for Labor Day
"This is about workers showing up and demanding what workers deserve all across the country," said Randi Weingarten, president of the American Federation of Teachers.
Aug 29, 2025
Unions and progressive organizations are planning nearly 1,000 "Workers Over Billionaires" demonstrations across the United States this Labor Day to protest President Donald Trump's assault on workers' rights.
The day of national action has been organized by the May Day Strong coalition, which includes labor organizations like the AFL-CIO, American Federation of Teachers, and National Union of Healthcare Workers, as well as advocacy groups like Americans for Tax Fairness, Indivisible, Our Revolution, and Public Citizen.
"Labor and community are planning more than a barbecue on Labor Day this year because we have to stop the billionaire takeover," the coalition says. "Billionaires are stealing from working families, destroying our democracy, and building private armies to attack our towns and cities."
Since coming into office, the Trump administration has waged war on workers' rights. Among many other actions, his administration has stripped over a million federal workers of their right to collectively bargain in what has been called the largest act of union busting in American history and dramatically cut their wages.
He has also weakened workplace safety enforcement, eliminated rules that protected workers against wage theft, and proposed eliminating the federal minimum wage for more than 3.7 million childcare and home workers.
Despite Trump's efforts, Americans still believe in the power of collective action. According to a Gallup poll published Thursday, 68% of Americans say they approve of labor unions, the highest level of support since the mid-1960s.
"Just like any bad boss, the way we stop the takeover is with collective action," the coalition says on its website.
The May Day Strong coalition previously organized hundreds of thousands of workers to take to the streets for International Workers Day, more commonly known as "May Day." On Monday, rallies are once again expected across all 50 states.
Four months later, their list of grievances has grown even longer, with Republicans having since passed a tax cut expected to facilitate perhaps the largest upward transfer of wealth in US history, featuring massive tax breaks for the wealthy paid for with historic cuts to the social safety net.
"There are nearly 1,000 billionaires in the country with a whopping $6 trillion, and that is still not enough for them," said Saqib Bhattie, executive director of the Action Center on Race and the Economy, another group participating in the protests. "They are pushing elected officials to slash Medicaid, [Supplemental Nutrition Assistance Program] benefits, and special education funding for schools in order to fund their tax breaks. We need to claw back money from the billionaire. We need to push legislation to tax billionaires at the state and local levels. We need to organize to build the people power necessary to overcome their money."
The group also plans to respond to Trump's lawless attacks on immigrants and his militarized takeovers of American cities.
"This Labor Day," said Lisa Gilbert, co-president of Public Citizen, "we continue the fight for our democracy, the fight for the soul of our nation, the fight against the vindictive authoritarian moves Trump and the billionaire class aimed at stealing from working people and concentrating power."
"This is about workers showing up and demanding what workers deserve all across the country," said Randi Weingarten, president of the American Federation of Teachers. "This Labor Day is really different, because it's not just labor unions, as important as we may be to the workers we represent. It has to be all workers and all working families saying enough. Workers and working families deserve the bounty of the country."
May Day Strong will host a national "mass call" online on Saturday. The locations of the hundreds of protests on Monday can be found using the map on May Day Strong's website.
Keep ReadingShow Less
Social Security Data Chief Who Blew Whistle on DOGE Resigns, Citing 'Culture of Fear'
Social Security Administration chief data officer Charles Borges described "fear and anxiety over potential illegal actions resulting in the loss of citizen data" in his resignation letter.
Aug 29, 2025
A federal worker who filed a shock whistleblower report alleging that employees of the Department of Government Efficiency had potentially compromised Americans' Social Security data abruptly resigned on Friday.
In a letter obtained by independent journalist Melissa Kabas, Social Security Administration (SSA) chief data officer Charles Borges said that he was "involuntarily" stepping down from his position at the agency due to "serious... mental, physical, and emotional distress" caused in the wake of his whistleblower report.
Borges said that after filing his report with the help of the Government Accountability Project, he was subjected to "exclusion, isolation, internal strife, and a culture of fear" that created a hostile work environment and made "work conditions intolerable."
Borges then recounted that he filed the whistleblower report because he was concerned that Department of Government Efficiency (DOGE) employees had uploaded Americans' Social Security information onto a cloud server that he believed was vulnerable to external hackers.
"As these events unfolded, newly installed leadership in IT and executive offices created a culture of panic and dread, with minimal information sharing, frequent discussions on employee termination, and general organizational dysfunction," Borges claimed. "Executives and employees were afraid to share information or concerns on questionable activities for fear of retribution and termination."
Borges concluded by saying that the total lack of visibility into the actions of DOGE employees who were handling Americans' most sensitive data created a sense of "fear and anxiety over potential illegal actions resulting in the loss of citizen data."
The report, whose existence was made public earlier this week, contends that Borges has evidence of a wide array of wrongdoing by DOGE employees, including "apparent systemic data security violations, uninhibited administrative access to highly sensitive production environments, and potential violations of internal SSA security protocols and federal privacy laws by DOGE personnel."
At the heart of Borges' complaint is an effort by DOGE employees to make "a live copy of the country's Social Security information in a cloud environment" that "apparently lacks any security oversight from SSA or tracking to determine who is accessing or has accessed the copy of this data."
Should hackers gain access to this copy of Social Security data, the report warns, it could result in identity theft on an unprecedented scale and lead to the loss of crucial food and healthcare benefits for millions of Americans. The report states that the government may also have to give every American a new Social Security number "at great cost."
Keep ReadingShow Less
Most Popular