The Jubilee Blog

G20 New Delhi Summit: Jubilee USA Statement

G20 heads of state meet in New Delhi, with global economic challenges, development, debt and climate on the agenda. The leaders released their summit declaration.

Eric LeCompte is the Executive Director of the religious development group Jubilee USA Network who has tracked G20 meetings since 2010. LeCompte, releases the following statement on the G20 Leaders' Summit and Declaration:

"Amidst government tensions and global crises, it's pretty amazing the G20 agreed on a declaration.

"The G20 recognized that only 12 percent of the 2030 global development goals are on track.

"Debt relief is essential if countries are to have a chance at achieving development goals that reduce poverty and protect our planet.

"The G20 agreed that existing debt relief processes need to be faster, predictable, efficient and comprehensive.

"Unfortunately, actions to improve debt relief are moving too slowly.

"We still don't have a vehicle to push greater participation of debt relief from the private sector.

"With 60 countries in debt crises and skyrocketing interest rates, we only have a G20 process that has involved 4 countries.

"We are at a point where the G20 needs to do much more on debt relief to ease the growing global debt crisis.

"The G20 development bank expert group called for increasing resources for development banks by $260 billion annually. The G20 needs to figure out how to get these resources that are critical for addressing poverty.

"G20 finance ministers meet in Marrakesh in October to discuss further measures on strengthening development banks.  

"Ahead of the meeting, the IMF reported that the use of $650 billion of emergency pandemic aid or Special Drawing Rights was effective.

"The poorest countries were able to afford vaccines and essential services for their people due to Special Drawing Rights.

"The IMF report hints at the important role Special Drawing Rights could play in future international assistance efforts.

"The decision to make the African Union a permanent member of the G20 gives a voice to the poorest and most climate-vulnerable region in the world."

Read the G20 declaration here.

Read Jubilee USA's press release in advance of the G20 summit here.

G20 Leaders Summit Focuses on Debt, Economic Development and Climate Change

World Bank Reports a Third of Developing Countries Face Slower Growth than Before Pandemic

G20 presidents and prime ministers gather in India for their annual summit to discuss global economic development. Absent from the meetings this year are Russia's President Vladimir Putin and President Xi Jinping of China. 

"G20 leaders are meeting as countries can't get out of debt and face food shortages and rising inflation," stated Eric LeCompte who heads the religious development coalition Jubilee USA Network. "As we face a number of global crises, the war in Ukraine is slowing decisions on global development."

The World Bank reported that one-third of developing countries will grow more slowly next year than in 2019, before the pandemic crisis. Because the Federal Reserve and other major central banks increased interest rates, developing countries are paying more on their debts.

“At least 60 countries cut human services and their climate change efforts in order to pay their rising debts," stated LeCompte. “The G20 has a critical role in moving forward more effective and efficient debt relief processes."

The group will review the debt situation in developing countries. In June, public and government creditors agreed to reduce debt for the second of four countries to apply to the G20's Common Framework, a debt reduction process the group set in 2020. Private creditors have not committed to matching debt reductions.

For the last two years the G20 had a focus on increasing resources for multilateral lenders and development banks. India’s G20 Presidency appointed former Secretary of Treasury Larry Summers and former Chairperson of the Fifteenth Finance Commission of India Nand Kishore Singh to chair a group of experts to examine additional needs to strengthen these multilateral lenders. 

In August, Africa interfaith religious leaders representing Catholic, Anglican, Presbyterian and other Christian denominations, the All Africa Council of Churches, Muslim and indigenous faiths called for increasing multilateral development bank finance.

“We welcome the international community’s exploration of ways to increase [multilateral development banks’] financing capacity and support combining new ways to use capital and capital increases in order to reach the desired scale,” the Africa religious leaders said in their August statement.

The New Delhi summit also reviews the impact of $650 billion in pandemic relief aid through an IMF 2021 emergency currency creation or Special Drawing Rights.

“The IMF reports that this pandemic relief helped the global economy, lowered borrowing costs and supported critical crisis spending in poor countries,” shared LeCompte. "Given the positive results from the use of Special Drawing Rights, the G20 should use this relief tool more widely."

As advanced economies received more than $400 billion in SDRs, the G20 agreed to transfer $100 billion to countries in need. The IMF reports pledges of more than $24 billion SDRs to its Poverty Reduction and Growth Trust, which lends to the poorest countries at zero-interest rates, and over $45 billion to a recently-created vehicle to provide long-term, low-cost pandemic preparedness and climate interventions loans.

“Special Drawing Rights held by wealthy countries are a cost-effective way they can contribute significantly to boosting development finance through the African Development Bank and other funding vehicles for climate, food, agriculture, infrastructure and other poverty-reducing priorities,” the Africa interfaith religious leaders stated.

Read Jubilee USA's press release on the Africa interfaith religious leaders meeting here.

Find more details on the G20 Summit here.

Find the IMF SDR Assessment Report here.

Read the Report of the G20 Independent Experts Group on Strengthening Multilateral Development Banks here.

Annual Federal Reserve Retreat Focuses on Global Economic Changes

In Wyoming, Central Bank Heads and Economists Discuss Inflation and Debt

Wrestling with inflation, country debt levels at historic highs and pandemic related economic shocks, many of the world's central bankers are in Jackson Hole, Wyoming to discuss managing the economies of countries. The annual Federal Reserve 2-day policy symposium, "Structural Shifts in the Global Economy," includes remarks from Fed Chair Jerome Powell, European Central Bank President Christine Lagarde and Ngozi Okonjo-Iweala, World Trade Organization Director General.

"All over the world people can't afford food and poverty is increasing," said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. "Developing countries already pay 7% of their revenue on the interest of their debts. When the Federal Reserve raises interest rates, it means debts increase for countries in crisis."

In April, the IMF forecast the weakest growth in decades. Central banks continue pursuing measures, such as raising interest rates, attempting to fight inflation.

“Central bankers must weigh the reality that more than 165 million people became poor since 2020," noted LeCompte. "If the debts of developing countries continue to go up, countries have less resources to address poverty. When the debts of developing countries increase, food and fuel prices increase across the United States and Europe."

Read the Jackson Hole Economic Policy Symposium agenda here.

G20 Finance Ministers Focus on Debt, Development and Dismal Economic Outlook in Gandhinagar

IMF Forecasts “Bleakest” Economy in Decades

On Monday, G20 Finance Ministers hold their third meeting hosted in Gandhinagar by the Indian government. The gathering comes as IMF global economic growth forecasts remain the lowest in decades. 

“Global economic challenges are pushing countries deeper into debt,” said Eric LeCompte, Executive Director of Jubilee USA Network, who has followed IMF and G20 policies for more than a decade. “The pandemic, the Russia-Ukraine war and high interest rates are raising debt in developing countries and these countries don't have the resources to respond to their food and climate crises.”

In June, after more than two years, governments holding Zambia debt announced agreement to reduce collection by the equivalent of 40%. However, payments will increase if Zambia’s economy does better, and will not decrease if it does worse than expected. Zambia still has to negotiate a restructuring of near $7 billion in debt owed to private creditors.

“More than 60% of Zambia's people live in poverty,” noted LeCompte. "Not enough debt was cut to address the suffering of Zambia's people."

The debt renegotiation took place under a process set by the G20 in late 2020 to cut developing country debts, the Common Framework for Debt Treatments. Zambia and Chad are the only countries to receive some relief so far.

Finance Ministers will review a report on additional needs for multilateral development bank lending. Former US Secretary of Treasury Larry Summers and former chairperson of the Fifteenth Finance Commission of India Nand Kishore Singh chair the group issuing the report. 

“Development banks need more money and need to implement reforms to effectively distribute additional resources to respond to regional crises,” stated LeCompte. 

G20 commitment to transfer $100 billion in emergency pandemic aid – Special Drawing Rights (SDRs) – from wealthy to poor country economies will also be on the agenda. More than $400 billion, out of $650 billion the IMF created in 2021, went to wealthy economies which committed to redirect $100 billion of their share to developing countries.

 

New York State Senate, Assembly Fail to Pass Taxpayer and Debt Crises Protection Legislation

S4747/A2970 Bill Champions Vow to Pass Debt Relief Legislation Within Next Year

The New York State Senate and Assembly will likely close their legislative session by Monday without voting on the New York Taxpayer and International Debt Crises Protection Act (S4747/A2970). The bill cleared Judiciary Committee in the Assembly and was the first global debt relief legislation to move through the New York legislature in nearly 20 years. The legislation was designed to stop predatory "vulture fund" behavior, alleviate poverty in developing countries, address high food prices and protect pensions and US taxpayers. The bill is supported by unions, major religious institutions, development groups, notable economists, finance ministers and high-level United Nations officials.

New York lawmakers, unions and religious groups vowed to continue their efforts until the New York Taxpayer and International Debt Crises Protection Act becomes law:

Assemblymember Patricia Fahy and A2970 sponsor:

"I remain fully committed to passing the New York Taxpayer and International Debt Crises Protection Act along with Senator Brad Hoylman, legislative cosponsors, Jubilee USA, and coalition partners at the earliest possible opportunity next session. This is a wake-up call, and I’m pleased that private creditors, vulture funds, and Wall Street are taking serious note of this legislation. Developing nations, New York taxpayers, and global markets are depending on us to get this done, which is why I look forward to aggressively pursuing this issue along with my colleagues in the months to come.” 

Senator Brad Hoylman-Sigal and S4747 sponsor:

“I’m grateful to the Jubilee USA Network for their work this legislative session in advancing international debt relief and New York State’s crucial role in helping reform the laws in this area to assist developing nations. I look forward to continuing to work with my Senate colleagues, including Senator Rivera and Senator Krueger, and pursuing a public hearing on this issue of international importance.”

Senator Leroy Comrie:

“This bill's reforms are necessary to protect taxpayers, workers, retirees and consumers and we will work to get them done by 2024.”

Senator John Liu:

“We will not stop our efforts until the New York Taxpayer and International Debt Crises Protection Act becomes law.”

Senator Luis Sepulveda:

"The Hoylman/Fahy bill is crucial to promote effective and orderly sovereign debt restructuring, achieve equitable burden-sharing, and prevent financial system disruption. This bill safeguards the interests of New Yorkers and supports international stability. Together, we can ensure sustainable outcomes and mitigate the impact of crises on our economy." 

Assemblymember Brian Cunningham:

"We are committed to passing this law to protect New Yorkers and our brothers and sisters in the Caribbean, Africa, Asia and Latin America.”

Assemblymember Edward Gibbs:

"One of the most important reasons for us to pass this bill is because it will protect New York taxpayers. When vulture funds refuse to offer relief - they get bailed out by our tax dollars."

Assemblymember Alicia Hyndman:

"We've seen an extremely vibrant campaign working to pass this law. I join the unions, religious groups, major economists and developing organizations who won't stop until we have a new debt relief law.”

Roberto O. González Nieves OFM, Metropolitan Archbishop of the Roman Catholic Archdiocese of San Juan de Puerto Rico:

"Because the New York Taxpayer and International Debt Crises Protection Act provides debt relief for our world in crises en masse, it protects Puerto Rico taxpayers, addresses inflation and economic shocks and helps address Puerto Rico's rising food prices."

Ruth Messinger, Former Member of New York City Council and Mayoral candidate, Global Ambassador and Former President and CEO, American Jewish World Service:

“It appears to be easy, sitting in Albany, to delay, to listen too carefully to those who will profit from the legislation not passing and to not hear the voices, and often the cries, of millions of children, women and men in the Global South who are losing education and health care resources, whose lives are in the balance. This is precisely the kind of issue that demands rapid action, yet our legislators have walked away from that reality.”

Brian McDonnell, Political and Legislative Director, AFSCME New York:

“AFSCME represents more than 400,000 public service workers in New York State. Our union maintains that private creditors should play by the same rules as government creditors. Although we fell short this session, we will continue to fight the vulture funds that hold countries hostage to squeeze out profit at the expense of their citizens and the essential public services that they rely on. Our union is a proud partner of Jubilee USA.”

Rev. Peter Cook, Executive Director, NYS Council of Churches, and Rashida Tyler, Deputy Executive Director, NYS Council of Churches:

"We are immensely disappointed that the New York Taxpayer and International Debt Crises Protection Act has not come to the floor for a vote this session. The legislation could have immediately assisted developing nations at risk of default. We are seeing the direct results of the global debt crisis here in New York State, as thousands of asylum seekers have come to the state in recent months. Many are from countries that are carrying unsustainable debt, which prevents them from being able to provide for basic human needs. We believe in this legislation, and thank the many supporters in the legislature for their courage to sponsor and co-sponsor this historic bill. We stand with the many congregations, faith leaders, NGOs, and international humanitarian organizations and will continue to fight to get this bill passed."

Rev. Nicolle D. Jean Simon, NAACP President of Schenectady Branch, Pastor of Duryee Memorial A.M.E Zion Church:

“I, like many other New Yorkers, have relatives in a developing country that is greatly distressed by the global debt crisis. Our state government can step in to help our families by passing the New York Taxpayer and International Debt Crises Protection Act. This groundbreaking bill allows New Yorkers to lend a helping hand to some of the world’s most marginalized. This bill will also result in lower food prices and gas costs. Not only is passing this bill the right thing to do, but it’s also a win-win situation for all. The passing of this legislation is critical. Let’s get it done by 2024!”

Ben Grossman-Cohen, Director of Campaigns at Oxfam America:

"New York legislators may have gone home, but the vulture funds who profit off the global debt crisis are still hard at work. The result of this inaction is that countries will continue to face default and the world’s poorest people will lose out on medical care, education, food and other essential services.  But this fight is not over. We look forward to ensuring this bill gets the consideration it deserves when session resumes.”

Eric LeCompte, Executive Director of Jubilee USA Network:

“This legislation has support in every corner of the world. We got this far because of the amazing lawmakers who were our champions. Our labor, religious, development, environment and diaspora organizations are committed to push this legislation until it passes. This bill helps all of us."

Read the Nobel Prize-Winning Economist Joseph Stiglitz, Former Minister of Finance of Colombia Jose Antonio Ocampo and Former Minister of Economy of Argentina Martin Guzman support memorandum for the New York Taxpayer and International Debt Crises Protection Act here.

Read the United Nations experts, economics and law experts and world leaders letter of support for the New York Taxpayer and International Debt Crises Protection Act here. 

Read the New York AFL-CIO, New York AFSCME, the New York State Public Employees Federation, 1199SEIU United Healthcare Workers East Union, the Communications Workers of America – Local 1180, the New York State Catholic Conference, the New York State Council of Churches, the United Church of Christ, the Evangelical Lutheran Church in America Upstate New York and Metropolitan New York Synods, the Methodist Church, the Presbyterian Church, Oxfam America, Bread for the World, the ONE Campaign, BRAC International, Catholic Climate Covenant, Friends of the Earth, NY Renews, Fridays for Future and other Memos/Letters of Support for the New York Taxpayer and International Debt Crises Protection Act here.

Read all of the New York Taxpayer and International Debt Crises Protection Act resources here.