The Jubilee Blog

Puerto Rico Struggles to Rebuild from Hurricanes Say Religious Leaders

By Kate Zeller

Hurricane Maria pummeled Puerto Rico last September 20th. According to the Associated Press, nearly 60,000 thousand people still reside in homes with blue-tarp-covered or inadequate roofs that could not survive a Category 1 hurricane. Tens of thousands of people across the island still lack access to housing or reliable electricity. After the hurricanes more than 130,000 people migrated to US States away from the island.      

"The hurricane anniversaries urge us to renew our commitment to assist the poorest among our people to rebuild their lives with dignity," noted San Juan's Catholic Archbishop Roberto González. "We all belong to one human family and need to care for one another."

Before Hurricane Maria, Puerto Rico saw a loss of emergency response and medical personnel due to austerity cuts imposed on the island wrestling with a $72 billion debt crisis. As hurricane recovery continues, Puerto Rico lumbers through a bankruptcy process designed by Congress.

"Our people feel in a state of uncertainty a year after Hurricane Maria and we are suffering from austerity measures from the debt crisis," stated Reverend Heriberto Martinez, the General Secretary of Puerto Rico's Bible Society and leader of a coalition to relieve the island's debt. "The impact of the hurricanes is that our people are leaving the island looking for employment and opportunities to improve the quality of life of their families." ‎

Rebuilding and recovery estimates for Puerto Rico range between $95 billion and $140 billion. The Governor and the island's congressionally mandated fiscal oversight board are requesting a rebuilding package of $125 billion. Over the last year, Congress and the federal government approved about $35 billion of aid for the island.

"Congress and the White House need to come through with the remaining aid so Puerto Rico can rebuild to withstand the next hurricane," shared Eric LeCompte, Executive Director of the religious development group Jubilee USA. LeCompte testified to Congress and Puerto Rico's oversight board on Puerto Rico's financial crisis. "If a minor hurricane hit the island today, we'd see great suffering that could have been prevented. The clock is ticking." ‎

Eric LeCompte's Thoughts are Featured in America

 

By Lydia Andrews 

Eric LeCompte, Executive Director of Jubilee USA was recently quoted in America, The Jesuit Review speaking on rebuilding efforts in Puerto Rico one year after Hurricane Maria. Read excerpt below and follow link to full article.

A year after Hurricane Maria, Puerto Rico is still rebuilding

One year after Hurricane Maria tore through Puerto Rico, rebuilding efforts are still in the early phases, according to Eric LeCompte, the executive director of Jubilee USA Network.

“On the ground itself, it’s really mixed depending on where you are on the island,” Mr. LeCompte told America. “You still see blue tarps,” he said, referring to blue plastic tarps relief workers issued as temporary fixes to leaky roofs. Congress has authorized one-third of the estimated $120 billion some estimate Puerto Rico will require for recovery, Mr. LeCompte said.

The Federal Emergency Management Agency reports that power, water and cell service has been restored to more than 99 percent of the island. But Mr. LeCompte said that power is not stable and Puerto Rico still suffers from blackouts. Countless traffic lights still do not work.

“They’re terribly vulnerable. If another hurricane hit, they would be devastated,” he said.

Migration away from the island, which Mr. LeCompte said continues, could lead to more schools closing. Even before the hurricane, the child poverty rate in Puerto Rico hovered near 60 percent, he said.

“There’s no doubt that Congress is not paying enough attention to Puerto Rico,” Mr. LeCompte said. In 2016, Congress ended tax incentives that had encouraged pharmaceutical companies to do business in Puerto Rico. Many companies left.

This development, along with unscrupulous lending practices, helps explain Puerto Rico’s complicated debt crisis, Mr. LeCompte said. The $72 billion debt is part of the reason Puerto Rico has had a difficult time recovering.

“It continues to struggle as it rebuilds,” Mr. LeCompte said. “We’re looking at a terrible situation made worse by the debt crisis. The reality is that the only way for Puerto Rico to grow is to see significant debt relief.”

Read more here.

Eric LeCompte Discusses the Anniversary of the Financial Crisis in The National

By Lydia Andrews 

Eric LeCompte, Executive Director of Jubilee USA was recently quoted in The National speaking on transparency and changes in financial policy in the decade after the financial crisis. Read excerpt below and follow link to full article.

A decade after Lehman's collapse, challenges remain

Eric Le Compte, executive director at Jubilee USA Network, agreed. “We’ve seen some progress on [reducing] risky and predatory lending and the US Dodd-Frank Act [of 2010] helped increase transparency in banking,” he said.

“But we still need debt work-out processes to help stop a crisis and greater laws around responsible lending to prevent the conditions for a crisis.”

Read more here.

Eric LeCompte is Cited in Ghana Business News on Debt, Tax and Transparency

By Lydia Andrews 

Eric LeCompte, Executive Director of Jubilee USA was recently quoted in Ghana Business News speaking on transparency. Read excerpt below and follow link to full article.

Lack of transparency in Chinese lending will increase Africa’s debt burden

By Emmanuel K. Dogbevi

Speaking to ghanabusinessnews.com in a telephone interview, Eric LeCompte, Executive Director of Jubilee USA Network, a coalition of religious, development and advocacy groups that works on debt, tax, trade and transparency policies that help end poverty, says Chinese lending lacks the level of transparency that other lending agreements have. This lack of transparency he says will “increase Africa’s debt burden.”

He points out that the situation is driven by the lack of what he calls “responsible lending rules in the international system.”

“China is benefiting from the lack of rules now,” he said.

LeCompte made reference to the period from 2001 to 2005, noting that during that period, growing lending led to debt forgiveness and “debt forgiveness led to economic growth in Africa, but lately the debt burden is growing. You have problems when countries cannot pay,” he said.

According to him, the Chinese are taking advantage of the debt situation to take natural resources from these countries.

“It is absolutely imperative that we find other means to finance African countries,” he added.

LeCompte called for laws to tackle tax avoidance and illicit financial flows from which African countries are losing billions of dollars.

“We need laws for responsible lending and borrowing. We need to look at new creative processes for debt relief. We need laws to curb tax evasion and global bankruptcy rules,” he said.

Read more here.