The Jubilee Blog

Religious Leaders Press Congress on Puerto Rico Relief, Jobs and Child Poverty

By Zach Conti 

As Congress negotiates a coronavirus stimulus bill, Puerto Rico and US religious leaders met with Congress leaders on job creation, disaster relief and food benefits for Puerto Rico.

"Nearly 60% of our children, US citizens, live in poverty in Puerto Rico. Our children are in vital need of Congressional action. The suffering our children face from the high level of poverty, the recurring natural disasters and now COVID-19, can only be described as tragic," wrote leaders of Puerto Rico Catholic, Methodist, Lutheran, Christian (Disciples) and Evangelical Churches to Congress over the summer. The Puerto Rico Council of Churches, Catholic Charities (Caritas) and the General Bible Society also joined the letter, resent to Congress this week.

Puerto Rico Catholic Archbishop Roberto González, one of the letter signers, joined US religious groups to meet with Republican leaders on priority actions for the island. The meetings organized by Jubilee USA Network encouraged authorization of $1.2 billion for the Nutrition Assistance Program that benefits 1.5 million people on the island. The House of Representatives passed a stimulus package that approved the funding, but that package did not pass the Senate.

“Before the pandemic hit Puerto Rico, the island wrestled with disaster recovery, high child poverty rates and a debt crisis,” said Jubilee USA Network Executive Director, Eric LeCompte. "Congress must move forward food assistance and efforts to support job creation for Puerto Rico."

In response to the calls for job creation, President Trump expressed support this fall for increasing pharmaceutical jobs on the island.

"In the mid-2000s, Puerto Rico lost over 100,000 good jobs to India and China. This loss led to our current debt crisis and many of the economic challenges we now face, further exasperated by a series of natural disasters. Given the constraints that exist in global supply chains and critical needs faced by all US citizens, current stimulus plans should include measures to bring pharmaceutical manufacturing jobs immediately to Puerto Rico and revive Puerto Rico's failing and debt-burdened economy," wrote Puerto Rico religious leaders in their letter to Congress.

Read the Jubilee Puerto Rico Religious Leader Letter to Congress here.

Climate Change Can be Addressed in Coronavirus Relief, Study Says Development Group Urges Shared Solutions for Debt and Climate Crises

By Zach Conti 

As countries address their debt crises, policy responses can reduce climate change, asserts a new study. “Linking Debt Relief and Sustainable Development: Lessons from Experience,” examines previous debt relief processes to learn how debt and climate responses can work in tandem.

“The coronavirus crisis reduced spending on climate issues in poor countries,” stated report author Aldo Caliari, the Senior Director of Policy and Campaigns for Jubilee USA Network. “The good news is that global policies can be designed to provide debt relief and nurture a green recovery at the same time.”

In November, Zambia defaulted on its debt and several more countries face defaults due to the coronavirus-spurred economic crises. The G20 announced a new debt relief process for 73 of the world's poorest countries.

The Heinrich Böll Foundation, the Center for Sustainable Finance (SOAS, University of London), and the Global Development Policy Center (Boston University) commissioned the paper as a contribution to their Debt Relief for a Green and Inclusive Recovery Project.

Read Aldo Caliari's Linking Debt Relief and Sustainable Development: Lessons from Experience.

Read more on Debt Relief for a Green and Inclusive Recovery Project.

Congress Passes Shell Company Accountability Bill

By Jubilee USA Network

By a vote of 84 to 13, the Senate passed corporate transparency legislation as part of the annual vote on the National Defense Authorization Act. The legislation reveals to authorities the real owners of so-called anonymous shell companies. These types of corporations can hide the identity of their owner and facilitate crime, development aid theft and human trafficking. The House passed the legislation on Tuesday and now the bill heads to President Trump's desk to be signed into law.

“Shell corporations are used by polluters, thieves and human traffickers,” said Eric LeCompte, the Executive Director of the religious development organization Jubilee USA Network. LeCompte's organization worked for passage of the legislation for over a decade, generating tens of thousands of e-mails and phone calls to Congress. “The passage of this legislation is progress towards tackling corruption, tax evasion and crimes against vulnerable populations.”

A UN panel of experts recently found that $1.6 trillion is laundered per year through shell companies and related mechanisms. Developing countries lose more than one trillion dollars per year to illicit financial flows.

Jubilee USA Network coordinated over 100 faith communities and some of the largest US religious institutions to encourage Congress and the White House to pass the legislation. Some of the religious groups joining Jubilee USA included the Christian Church (Disciples of Christ), Episcopal Church, Evangelical Lutheran Church in America, National Council of Churches, Presbyterian Church, United Church of Christ, United Methodist Church, Catholic religious orders and Jewish, Christian and Muslim faith communities.

"The new law is the fruit of years of advocacy and partnership with Republicans and Democrats,” noted LeCompte. “While we  celebrate this progress, more must be done to win the higher degrees of disclosure and transparency that we still need.”

Read Jubilee USA's letter to the Senate in support of corporate transparency legislation here.

 

G20, IMF and World Bank Negotiate COVID-19 Debt Relief and Aid Deals

By Zach Conti

World leaders met virtually for the Annual IMF and World Bank Meetings and moved forward several agreements on debt relief and aid for developing countries to combat the coronavirus crisis. In recent weeks, the Pope, G7, United Nations agencies and development groups called for a permanent debt reduction process.

Hundreds of anti-poverty organizations, religious institutions and faith communities signed a letter to press the G20 and IMF on a pandemic response plan for developing countries. This weekend more than a hundred organizations and faith communities are organizing G20 petition drives, hosting educational events and dedicating worship services for, "Jubilee Weekend: Curing Poverty, Inequality and the Coronavirus.”

"Before the pandemic hit newspaper frontpages, many developing countries already had poor health services, faced financial crises and inequality globally was on the rise," stated Eric LeCompte, a UN finance expert who heads the religious development group Jubilee USA Network. "As the coronavirus crisis became apparent, religious institutions and development groups led the calls for debt relief, protections for the vulnerable and aid for the developing world."

Synagogues, churches, Muslim groups and faith communities are participating in a range of countries including Kenya, Ghana, Italy, Nigeria, France and Japan. Across the United States, events are planned in more than one hundred cities and towns from Chester, Pennsylvania to Sandy Springs, Georgia to Missoula, Montana and Lakewood, California.

Jubilee USA Network, the convener of the actions that coincide with the IMF, World Bank and G20 meetings, is also organizing a running letter to world leaders on debt, tax and transparency responses to the COVID crisis. The letter currently counts more than 220 signatories that include some of the largest religious, development, labor, environmental and human rights organizations in the world.

This week the IMF announced it would cancel debt payments for 29 of the world's poorest countries into the spring and the G20 agreed to suspend debt payments for 73 developing countries through next June. The most significant announcement was that the G20 would convene a special meeting in the next few weeks to agree on terms for a debt cancellation process for developing countries.

"We've seen progress on some debt relief, but the big focus now needs to be on the process to permanently reduce debts of countries in crisis,” noted LeCompte.

During the meetings, the IMF reported increased resources for concessional lending to the most vulnerable countries. Part of these contributions were from rich countries transferring IMF-issued global reserve funds or what are known as Special Drawing Rights.

"Rich countries hold $176 billion of largely unused IMF-issued global reserve funds that they could donate for lending and debt relief,” said LeCompte. "The IMF could unlock access to trillions of dollars in new global reserve funds which translate into lifesaving resources in developing countries.”

Major religious institutions lead the Jubilee USA letter to the IMF and G20. The signers include: The All Africa Conference of Churches, National Council of Churches, Religious Action Center of Reform Judaism and the Episcopal, Evangelical Lutheran, Presbyterian, Methodist and United Church of Christ Churches. The Unitarian Universalist Association and the largest representations of Quaker communities and Buddhist consortiums are on the letter. The US Conference of Catholic Bishops sent a separate joint letter with Jubilee USA and Pope Francis called again for a debt relief process in his just released Encyclical Fratelli Tutti.

Counting their membership in the millions, labor unions including the United Steelworkers (USW), American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) and American Federation of State, County and Municipal Employees (AFSCME) joined faith groups in the G20 and IMF letter. Other signers include human rights organizations like Amnesty International USA and Pax Christi and also environmental advocates ranging from Amazon Watch to Friends of the Earth. Development groups were represented on the Jubilee USA letter such as Islamic Relief, American Jewish World Service, American Friends Service Committee, Bread for the World, Action Aid, Oxfam, RESULTS and Health Gap.

Around the world, the Asian Peoples' Movement on Debt and Development (Jubilee Asia Pacific) convened 125 global organizations to host actions and events during the IMF and World Bank meetings.

Read the list of groups and faith communities participating in "Jubilee Weekend: Curing Poverty, Inequality and the Coronavirus," here.

Read Jubilee USA's COVID-19 Jubilee White House, IMF, G20 Letter here. 

Read Jubilee USA's press statement on the IMF and World Bank Development Committee Communiqué here.

Read Jubilee USA's press statement on the World Bank and IMF Annual Meetings and Communiqué here.

Read Jubilee USA's press release on the IMF's World Economic Outlook and Global Financial Stability reports here. 

Read Jubilee USA's press release on the G20 Finance Ministers Meeting here. 

Biden Should Call for Emergency G20 Leaders Meeting, Says Religious Development Group

By Zach Conti 

A religious development group urges President-elect Biden to convene an emergency G20 meeting upon inauguration into the high office. Jubilee USA Network focuses on solutions to the global coronavirus health and economic crises and argues additional G20 action must happen quickly.

"While the G20 made progress in recent months on confronting the global coronavirus crisis, we need much more action to lift workers and protect the vulnerable," stated a United Nations finance expert and Jubilee USA Executive Director, Eric LeCompte. "One of the most important things that a new President Biden can do is bring together world leaders to more robustly confront the crisis."

This past weekend, Saudi Arabia held the virtual G20 Leader's Summit where the group affirmed a debt relief process for 73 of the world's poorest countries. The US Government encouraged that the debt process be extended to more developing countries and the G20 called for equitable vaccine access for developing countries.

"An emergency G20 summit is needed to ensure vaccines and treatments are available to all people," said LeCompte. "Whether we live in rural Minnesota or on the outskirts of Lusaka in Zambia, the G20 must ensure that everyone can access healthcare to confront the coronavirus."

G20 Summit: COVID, Climate, Debt and Transparency

By Zach Conti 

Presidents and prime ministers, chaired by Saudi Arabia, met virtually for the annual G20 summit. The group focused on climate issues, financial transparency and endorsed the “Common Framework for Debt Treatment beyond the Debt Service Suspension Initiative,” which allows up to 73 poor countries to obtain debt reduction.

Eric LeCompte, the Executive Director of Jubilee USA Network and a United Nations finance expert, releases the following statement on the G20 Leaders' Summit and Communiqué:

"Climate issues are a growing concern for the G20 and the group has the power to make binding decisions related to climate change solutions.

"Over the last months, the G20 made progress on tackling debt as a response to the coronavirus health and economic crisis.

"Some of the world's poorest countries urgently need the debt relief that the new G20 debt reduction process offers.

"The new framework makes G20 debt relief contingent on countries making requests for similar treatment from the private sector. This pushes the private sector to start debt relief negotiations, but does not guarantee there will be private sector debt relief.

“Six of the twelve countries with the highest COVID death rates are middle-income countries, which remain outside the scope of the G20 debt process.

"Too many developing countries are still left out of debt relief and aid measures. The G20 failed to implement solutions on the debt and economic challenges that middle-income countries face because of the COVID crisis.

“It's clear that some G20 members, like the United States, wish to see debt relief and aid measures extended to more countries. 

"The fact that the G20 summit focused on the needs of small island developing states is notable.

"The G20 commitment to curb tax avoidance and evasion is important. Part of the reason too many countries were not prepared to deal with the current crisis is because they lost vital revenues to tax avoidance and evasion. The G20 must act seriously to challenge these global economic losses.

"Promoting more transparency and anti-corruption measures in the financial system and within global debt policies is a priority for the G20." 

Read the G20 Communiqué here.

As G20 Leaders Meet, US Supports Expanding Debt Relief for Countries that IMF Says are Left Out

By Zach Conti 

As G20 presidents and prime ministers convene, the IMF warns some countries are left out of the G20's new debt reduction process. Last Friday, the United States Treasury stated support for extending debt relief beyond the initial 73 poor countries who qualify for the G20 debt reduction process.

"The United States realizes that more countries will need debt relief to get beyond the coronavirus economic crisis," stated Eric LeCompte, the executive director of the religious development group, Jubilee USA. LeCompte worked with successive US Administrations and Republican and Democratic Members of Congress on their debt relief policies for more than a decade. "While we've seen a lot of progress over the last months, the G20 will need to go beyond existing debt relief initiatives."

This weekend, the G20 is expected to formally approve the “Common Framework for Debt Treatment beyond the Debt Service Suspension Initiative.”

Middle-income countries like Argentina and Ecuador recently finished debt restructurings. Lebanon and Suriname are confronting debt crises. JP Morgan notes 40% of emerging market countries risk default in the next year.

“As more countries face crisis, we need solutions that can help stabilize the global economy,” said LeCompte.