ok but what is it? Can you further define it?
obviously sdr stands for special drawing right. but what are they? etc. etc. etc.
Each country makes a financial contribution to become a member of the IMF. The contribution size depends on each country's macroeconomic conditions.
SDRs are used as unit of account, settlement and voting rights.
Based on the SDR position (below/above the quota) a country can obtain financing from IMF or member countries (either many-to-one or one-to-one) to cover short-term reserve deficit. It also determines the capped amount IMF might allocate a country under a certain arrangement, especially for mid-term structural reforms.
SDR position makes a part of each country's Reserve Assets. % wise it's a small share for many countries - about 1-4% of total reserves.
The SDR mechanism favors wealthy states, that contribute more to the currency pool. Members with a low % of total SDRs have slightly higher % of total voting rights, though.
I foresee unhappy opinions, that "capitalist rich countries corrupt and ride on the back of brave poor countries", because IMF-backed financing comes with tough requirements for the recipient countries. It's totally OK to have a strong grip over the counterparty you are financing - debt shall be repaid, not written off and the recipient should realize the reforms it's claiming funding for.
On the same note, people should be more responsible in their decisions - electing corruptible politicians, they are pushing themselves to the edge. Like it was in Greece - too many social programs built on borrowed money led to unsustainable level of debt. Credit is beneficial, when you invest in marginally profitable projects or develop the infrastructure, not when you pay pensions out of external debt.
