The Jubilee Blog

United Nations Convenes High-Level COVID Response Session for Vulnerable Countries

The United Nations convened on COVID response and development needs for vulnerable, small island and landlocked countries. The President of the Economic and Social Council, Pakistan Ambassador Munir Akram organized the high-level event to focus on countries struggling with specific disadvantages from the crisis.

“Small islands, poor countries and landlocked nations faced considerable risks and vulnerabilities before the pandemic struck,” said Eric LeCompte, Executive Director of Jubilee USA Network and one of the primary speakers at the session. “The COVID pandemic made the situation worse and too many countries are left out of global agreements to deal with the crisis."

The pandemic set back progress towards achieving the Sustainable Development Goals, targets the international community adopted in 2015, for the countries discussed during the special UN session today.

“These countries struggle to provide vaccines and lack aid to support jobs, address climate change and feed their people,” noted LeCompte.

High-level speakers at the session include Gaston Browne, Prime Minister of Antigua and Barbuda; Mia Mottley, Prime Minister of Barbados; José Ulisses de Pina Correia e Silva, Prime Minister of Cabo Verde; Eisenhower Nduwa Mkaka, M.P., Minister of Foreign Affairs of the Republic of Malawi; Aiyaz Sayed-Khaiyum, Attorney-General and the Minister for Economy, Public Enterprises, Civil Service, Communications and the Minister responsible for Climate Change of Fiji; Rabab Fatima, Permanent Representative of Bangladesh to the United  Nations  and  Co-Chair  of  the  Preparatory  Committee  for  the  Fifth  UN  Conference on LDCs; Baroness Patricia J. Scotland QC, Secretary-General, Commonwealth Secretariat; Lindsey Zuluaga, White House Director for International Economic Policy, National Security Council, USA; Jose Antonio Ocampo, Chairperson of the Committee for Development Policy of the Economic and Social Council; Mr. Umberto de Pretto, Secretary General of the International Road Transport Union; Eric LeCompte, Executive Director of Jubilee USA Network and Fekitamoeloa Utoikamanu, Under-Secretary General and Special Representative of the Office for Least Developed Countries, Landlocked Developing Countries and Small Island Developing States.

The UN session takes place from 10:00 to 1:00 PM and 3:00 PM to 5:00 PM New York Eastern Daylight Time.

Read the schedule and speakers here.

View the special UN session live and see recordings here.

Read Jubilee USA Network Executive Director Eric LeCompte's Speech here. 

https://www.jubileeusa.org/pr_lecompte_un_ecosoc_address

Biden Vows Cut to US Emissions as Yellen Commits Full Power of Treasury to Address Climate Change

Financial decisions play a critical role in solving climate change, advocated Treasury Secretary Yellen during a US-hosted climate summit. More than 40 world leaders are attending the two-day virtual gathering convened by President Biden. Biden announced a new US target to halve fossil fuel emissions by 2030 and eliminate them by 2050. 

“The summit encourages world leaders to do more to protect our planet and environment,” noted Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “Secretary Yellen's powerful words remind us that climate change decisions are linked to financial decisions and global coronavirus response."

In a strategy unveiled on Tuesday, Treasury pledged to confront climate change, domestically and globally, in all decisions the financial institution considers. To ensure all agencies within Treasury focus on climate change, Yellen named John Morton as the department's first Climate Counselor to lead the Climate Hub, reporting directly to Yellen on climate matters.

“Treasury is playing a key leadership role at the IMF and G20 to confront climate change worldwide," stated LeCompte. 

This year the US co-chairs the G20 sustainable finance working group which will have a role in climate change issues.

In a speech on Wednesday to a group of private investors and creditors, the Institute of International Finance, Yellen asserted that developing countries are vulnerable to climate change. She underscored that infrastructure investments should be low-emission, resilient and sustainable.

“Treasury's encouragement for private sector investments to promote climate solutions is important,” shared LeCompte. "I worry that Yellen's words are falling on deaf ears. In spite of the urging of the US, IMF, G20, UN and World Bank, too much of the private sector refuses to participate in coronavirus debt relief. Segments of the private sector are forcing developing countries to choose between paying debt or supporting their people and addressing climate change."

In March, Jubilee USA Network and Treasury organized a roundtable with Yellen and high-ranking religious leaders. At the meeting, the Secretary shared her vision of Treasury's role in combating climate change. 

See the full agenda for President Biden's Leaders Summit on Climate here.

Read Secretary Yellen's speech at the Leaders Summit on Climate here. 

Read Secretary Yellen's speech to the Institute of International Finance here.

Read Treasury's readout of the Jubilee USA High-Level Roundtable with Secretary Yellen here.

Read about the Jubilee USA High-Level Roundtable with Secretary Yellen here.

Read President Biden's speech at the Leaders Summit on Climate here.

https://www.jubileeusa.org/pr_biden_yellen_treasury_climate_change

Jubilee USA Statement on IMF and World Bank Meetings and Development Committee Communiqué

By Zachary Conti, 

 

The Development Committee, a ministerial-level consensus building and policymaking body for the World Bank and the IMF, met as part of the Spring IMF and World Bank Meetings.

Eric LeCompte the Executive Director of the religious development organization Jubilee USA, a UN expert who monitors IMF and World Bank meetings, releases the following statement on the meetings and World Bank Development Committee Communiqué:

"While we've made some significant progress in combating the coronavirus crisis, this week's meetings lacked ambition and should be defined as a lost opportunity.

"IMF and World Bank analysis shows that developing countries face deeper challenges because of the pandemic and yet, the institutions seem to be taking the crisis less seriously.

"High debts and rising deficits limit the ability of developing countries to mount an effective pandemic response. The current IMF and World Bank measures are insufficient.

“Access to vaccines, aid and debt are all connected. The World Bank found that only 2% of vaccines have reached poor countries.

“World Bank analysis unveiled this week shows that the number of poor countries in debt crises or with high debts continues to grow.

“The importance of private creditors in debt relief is a theme throughout the Spring meetings, but not a single solution to promote their involvement has been raised this week.

“All countries that defaulted last year were middle-income countries. This group of countries faces incredible challenges and are not included in current relief and aid initiatives.

"Moving forward more IDA funding to support poor countries is a very positive step.

"This week, the IMF and World Bank are taking strong steps to link addressing climate change as a part of pandemic response."

Read the World Bank Development Committee Communiqué here.

Read Jubilee USA's statement on the IMFC communiqué here.

Read Jubilee USA's release on 260 faith, labor, human rights, and other groups pressing the IMF, G20 and White House on a COVID response here.

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

Read Jubilee USA's release on the IMF's Global Financial Stability report here.

Read Jubilee USA's release on the IMF's World Economic Outlook report here.

Read about the IMF extending a process to cancel debt payments for the world's 28 poorest countries here.

Jubilee USA Statement on World Bank and IMF Annual Meetings and IMFC Communiqué

World leaders, finance ministers, heads of corporations and development groups are meeting virtually for the World Bank and IMF Spring Meetings. The International Monetary and Financial Committee (IMFC), the IMF policymaking body, discussed policy responses to the global COVID-19 economic crisis, including tax, aid, vaccines, Special Drawing Rights and debt processes to support developing countries.

Eric LeCompte the Executive Director of Jubilee USA Network and a United Nations finance expert, who monitors the IMF, releases the following statement on the IMFC Communiqué and IMF and World Bank Spring Meetings:

"While noting its analysis is uncertain, the IMF continues to herald a faster global economic recovery. At the same time, the IMF is saying that most countries will be worse off than they were before the pandemic. 

 

"This week, the IMF released analysis that forecasts stronger recovery centered on two countries, the United States and China. The same IMF analysis notes most countries will continue to struggle and developing countries will lose decades of development gains.

“Wide differences in resources between rich and poor countries sow the seeds of a more unequal post-COVID economy.

“The support for the creation of $650 billion in emergency reserve funds, or Special Drawing Rights, means new resources for developing countries struggling with the pandemic.

"Thanks to the United States Treasury and the IMF, consensus is growing on a global minimum corporate tax. 

"A global minimum corporate tax means new revenues to fight poverty and address inequality.

"A global digital tax agreement can provide additional revenues for coronavirus-hit developing countries. 

"Almost 95 million people entered the ranks of extreme poverty due to the pandemic over the last year. As developing countries face decades of lost development gains, we need to do more to ensure that all countries recover, not just rich countries.

"According to the IMF, the entire future of the global economy hinges on the pace of global vaccination.

“Debt relief is not moving quickly enough to address the needs of all developing countries struggling with the pandemic.

"I'm incredibly concerned by references in G20 and IMF statements about ending debt relief measures as suffering increases in developing countries.

“The poorest countries will need to spend $450 billion over five years to fight the pandemic and restart some growth. Only significant debt cuts and aid can get them there.

"As deficits and debts rise in many developing countries, rising interest rates in wealthy economies could precipitate another global financial crisis.

"It's critical that world leaders are placing more emphasis on solving the climate crisis as we tackle the health and economic crises spurred by the coronavirus.

"In the next months, we must focus more on moving forward processes to prevent the next crisis. Had world leaders implemented past global agreements on crisis prevention, we'd have the tools in place to deal with the current crisis."

Read the IMFC communique here.

Read Jubilee USA's release on 260 faith, labor, human rights, and other groups pressing the IMF, G20 and White House on a COVID response here.

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

Read Jubilee USA's release on the IMF's Global Financial Stability report here.

Read Jubilee USA's release on the IMF's World Economic Outlook report here.

https://www.jubileeusa.org/ps_imfc_spring_2021

260 Faith, Labor and Development Groups Press IMF, G20 and White House on COVID Response

As G20, IMF and World Bank Spring Meetings convene virtually on global COVID response, 260 groups call for developing country aid and policies to prevent future crises and protect the environment.

Organized by Jubilee USA Network, 260 religious groups, anti-poverty organizations, labor unions, environmental and human rights institutions signed a letter on coronavirus crisis response to the White House, G20 and IMF. 

“World leaders worked hard over the last year to tackle the health and economic crises spurred by the COVID pandemic," said Eric LeCompte, a UN finance expert who heads the religious development group Jubilee USA Network. Jubilee USA spearheaded the letter effort. “We must do more. Unless we take immediate action to solidify more aid and relief, we face lost decades of development and millions more will suffer.”

The G20 agreed to suspend debt payments for 73 developing countries through next June and created a process for the same countries to reduce debt. The IMF announced it would cancel debt payments for 28 of the world's poorest countries into October.

In recent weeks, the G7 supported an allocation of emergency reserve funds or Special Drawing Rights (SDRs). Treasury notified Congress of support for the aid and the G20 is expected to announce support for SDRs this week.

“If the IMF and G20 move forward emergency reserves, it means right away developing countries can access more than $200 billion to fight the health and economic impacts of the coronavirus," stated LeCompte. "We will likely see another additional process where hundreds of billions of more dollars in Special Drawing Rights could be transferred from wealthy countries to developing countries for further support."

Major religious institutions lead the Jubilee USA letter to the IMF, White House and G20. The signers include: The Union for Reform Judaism, All Africa Conference of Churches, National Council of Churches 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, companion joint letter with Jubilee USA Network and Pope Francis called again for a debt relief process in his Encyclical Fratelli Tutti.

Counting their membership in the millions, labor bodies including the International Trade Union Confederation, 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 on letter. Other signers include human rights organizations like Amnesty International and Pax Christi and also environmental advocates ranging from Amazon Watch to Friends of the Earth. Development groups were represented and included Islamic Relief, American Jewish World Service, American Friends Service Committee, Bread for the World, Action Aid, Oxfam, RESULTS and Health Gap.

On March 16th, Jubilee USA organized a roundtable with Treasury Secretary Janet Yellen and the highest-ranking leaders to specifically go over the calls in the Jubilee letter. A separate letter with 240 groups supporting SDRs was sent to the G20. The additional G20 SDR letter was coordinated by Jubilee USA and LATINDADD.

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

Read the joint US Conference of Catholic Bishops/Jubilee USA Network Letter to President Biden here.

Read about Jubilee USA's High-Level Roundtable with Secretary Yellen here.

Read Jubilee USA's release on the IMF's Global Financial Stability report here.

Read Jubilee USA's release on the IMF's World Economic Outlook report here.

Read about the IMF extending a process to cancel debt payments for the world's 28 poorest countries here.

Read about the IMF announcing support for $650 billion in emergency reserves here.

Read the letter from 240 groups to the IMF and G20 here.

https://www.jubileeusa.org/pr_covid_jubilee_wh_imf_g20_letter_april_2021

IMF: Indebted Countries Suffer if US Interest Rates Rise

The IMF warns that rising US interest rates could impact the ability of developing countries to pay debt, leading to prolonged economic crisis. The warning comes ahead of IMF, G20 and World Bank meetings, with the Fund's release of the Global Financial Stability Report.

“Except for Zambia, all countries that defaulted over the last year were middle-income countries,” said Eric LeCompte, the Executive Director of the religious development organization Jubilee USA Network. “Unfortunately, developing middle-income countries are not included in IMF and G20 debt relief solutions."

The report warns that recovery from the pandemic will be unequal between rich and poor countries and that more needs to be done to strengthen long-term stability around the globe. This morning the IMF released the World Economic Outlook Report estimating that 95 million more people fell into extreme poverty over the last year, living on less than $1.90 a day.

"Wealthy countries invested in big stimulus packages and can rebound more quickly," said LeCompte. "Billions of people in developing countries are left behind and their lives will be even worse after the pandemic."

Read the IMF's Global Financial Stability report here.

Read Jubilee USA's release on the IMF's World Economic Outlook report here.

Read about the IMF extending a process to cancel debt payments for the world's 28 poorest countries here.

Read about the IMF announcing support for $650 billion in emergency reserves here.

https://www.jubileeusa.org/pr_imf_gfsr_apr_2021

IMF Reports Pandemic Economic Outlook Uncertain

"The pandemic will reverse the progress made since the 1990s in reducing global poverty and will increase inequality," states the IMF in its flagship World Economic Outlook report. 

"The forecasts of rising inequality and tens of millions of people falling into extreme poverty must be averted," stated Eric LeCompte who monitors the IMF and is the Executive Director of the religious development group Jubilee USA Network. "We can reverse these dire predictions with strong aid packages and deep debt relief for all developing countries."

According to the Fund, the crisis could drive 90 million more people into extreme poverty, living on less than $1.90 a day.

"We have the resources and the ability to act now," said LeCompte. "We cannot allow decades of development to be lost." 

Some wealthy countries are rebounding more quickly due to stimulus, according to the IMF.

"While IMF forecasts remain uncertain due to the depth of the crisis, the Fund predicts inequality will deepen between rich and poor countries," noted LeCompte.

Read the IMF's World Economic Outlook report and watch the press briefing here.

Read about the IMF extending a process to cancel debt payments for the world's 28 poorest countries here.

Read about the IMF announcing support for $650 billion in emergency reserves here.

https://www.jubileeusa.org/pr_imf_weo_spring_2021

IMF Cancels Debt for 28 Poor Countries into Fall of 2021

The IMF Executive Board extended a process to cancel debt payments for the world's 28 poorest countries. 

"This is good news for poor countries struggling with the health and economic impacts of the coronavirus," noted Jubilee USA Executive Director Eric LeCompte who worked on the creation of the debt relief mechanism. "Cancelling debt, for these vulnerable countries, means resources can be spent on healthcare and social services."

The IMF debt relief process, the Catastrophe Containment and Relief Trust (CCRT) provided debt relief for the last year and now continues debt relief through October 15, 2021. The process previously offered debt relief for Haiti and three African countries hit by Ebola crises.

"While this is important debt relief in the short term, we now need to work on cancelling debts for the long term for these countries," said LeCompte. "Only long-term debt reduction can support developing countries to emerge from the pandemic with resilience."

Read the IMF release on the CCRT extension here.

https://www.jubileeusa.org/pr_imf_ccrt_fall_2021

Treasury Notifies Congress of $650 Billion Emergency Reserves to Fight Global COVID Crisis

Treasury notified Congress of its support for $650 billion in IMF global reserves, also known as Special Drawing Rights (SDRs), to assist developing countries struggling with the coronavirus crisis. US law requires a ninety-day advance alert to Congress before the US votes for SDRs with the IMF board.

“The notification paves the way for the US to vote in favor of these funds that developing countries need," said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. Jubilee USA advocated for the creation of these funds since the advent of the pandemic. "As early as the summer, hundreds of billions of these emergency reserve funds can now be authorized for countries struggling with the pandemic."

In February, Jubilee USA Network and the US Conference of Catholic Bishops sent a letter to Secretary Yellen and President Biden expressing support for a new SDRs allocation. Jubilee USA Network also coordinated a letter to the G20 signed by more than 215 organizations worldwide in support of SDRs. The G20 and IMF announced support for the $650 billion allocation.

Treasury says low-income countries will see $21 billion from a new allocation and other developing countries receive $221 billion.

Read the letter on SDRs, aid and debt relief from the US Conference of Catholic Bishops and Jubilee USA Network here.

Read the letter organized by Jubilee USA with 200 plus signers urging the G20 to support SDRs here.

Read about the IMF's announcement of support for $650 billion in emergency reserves here.

Read the US Treasury's Fact Sheet on the benefits of a new allocation of Special Drawing Rights here.

https://www.jubileeusa.org/pr_treasury_congress_sdrs