Global Development Horizons 2011 Multipolarity in International Finance laborate to encourage use of the SDR in a number of ways: also conceivably allowing the IMF to hold SDRs in escrow and issuing or withdrawing them when needed (IMF 2010c). Such reforms, however, would require an amendment to the IMF’s Articles of Agreement. • By issuing public debt linked to the value of the SDR • By encouraging the creation of clearing mechanisms for private SDRs • By changing the SDR basket, for instance, to include the renminbi or other major emerging-market currencies • By expanding the set of prescribed holders of official SDRs • By intervening directly in SDR-linked instruments to develop the liquidity of the private SDR market Conclusion The world economy is going through a transformative change in its growth dynamics, industrial landscape, and management of international monetary and financial affairs. How the international monetary system evolves in the future matters crucially for development policy, agenda, and practice. In setting the context for global growth and financial stability, the international monetary system conditions not only developing countries’ access to international sources of capital, but also the stability In addition, the provisions for approving SDR allocations could be modified to make them more flexible and subject to less stringent conditions, FIGURE 3.14 Distribution of foreign exchange reserves, 1999 and 2008 a. Distribution of reserves (reserves/imports), all countries, 1999 50 b. Distribution of reserves (reserves/imports), all countries, 2008 40 30 % of countries % of countries 40 20 10 30 20 10 0 0 Res.<3 3