The Jubilee Blog

Jubilee USA Statement on World Trade Organization Meeting

by Olivia Engling

The World Trade Organization closed two-day meetings on pandemic response policies that included a proposal to temporarily wave COVID vaccine patents.  

Eric LeCompte, Executive Director of the religious development organization Jubilee USA Network and a United Nations finance expert, releases the following statement on the World Trade Organization meetings:

“We must act quickly to increase vaccine production and ensure everyone can access COVID-19 vaccines, tests and treatments. 

"Unfortunately, the WTO failed to agree on a temporary patent waiver.

“Waiving pharmaceutical patents is necessary for more countries to produce and procure COVID vaccines and ultimately end the pandemic.

“World leaders fail to act and millions of people will suffer and die because they can't access vaccines."

Puerto Rico Job Creation Bill Introduced in Senate

by Olivia Engling

Companies could get tax breaks for creating jobs in Puerto Rico, under a bipartisan bill introduced by Senators Robert Menendez (D) and Roger Wicker (R). If passed, the Territory Economic Development Tax Credit Act seeks to increase employment and investment in the US territories.

“Puerto Rico needs good jobs to see long-term economic recovery,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “Debt relief and natural disaster recovery aid will not be enough to reduce the island's high poverty rates. Jobs are a big part of the solution.”

Puerto Rico religious leaders, US religious bodies and Jubilee USA Network advocate returning manufacturing jobs to the island. In February, 20 major Puerto Rico and US religious leaders asked President Biden to act on their jobs proposal.

Last year, Puerto Rico religious leaders wrote Congress to support island pharmaceutical and personal protective equipment manufacturing to help fight COVID-19 and promote job growth. Then-President Trump expressed support for the measures. 

“We are grateful that Senators Menendez and Wicker are leading this bipartisan action that can support economic recovery and fight poverty,” stated LeCompte.

Read the Jubilee USA Puerto Rico and US Religious Leaders Letter to President Biden here.

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

WTO Reviews Vaccine Patents and Pandemic Response Options

By Olivia Engling

A proposal in front of the World Trade Organization could make it easier for countries to access COVID vaccines. This week the global trade body reviews the proposal to waive pharmaceutical vaccine patents as part of a menu of trade pandemic response policies. 

“Not enough vaccines are getting to developing countries,” noted Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “Part of the solution is supporting countries to produce the vaccines that they and other countries desperately need."

According to the United Nations, wealthy countries received 82% of COVID vaccine doses, while poor nations received less than 1%. The US government supports WTO action to temporarily waive vaccine patents. The WTO is not expected to act on the proposal until the fall.

“Every moment we delay acting, means more lives lost and more countries face prolonged economic crises,” said LeCompte.

Read about the WTO COVID vaccine patent waiver process here.

IMF Extends Zero-Interest Lending to Poor Countries

By Olivia Engling

IMF Can Sell Gold Reserves to Extend Aid to Developing Countries

The IMF announced increased zero-interest lending for poor countries. IMF member countries further committed to investigate additional options to extend pandemic aid through 2029, including the selling of IMF gold reserves.

“Poor countries need more support to confront the health and economic devastation caused by the coronavirus,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. "While the IMF action is helpful, it still falls short of delivering the support developing countries need." 

The Fund's announcement means zero-interest poor country lending increases through the IMF's Poverty Reduction and Growth Trust. Last year the IMF facility boosted lending for poor country COVID response. An IMF paper listed a limited sale of IMF gold reserves as a way to meet funding shortfalls.

“In the past IMF gold reserves were sold to support poor countries," stated LeCompte. LeCompte's organization Jubilee USA organized nearly 270 religious and development groups to sign a letter to the IMF calling for COVID response aid including the selling of IMF gold. "Most of the world's people face incredible suffering because of the pandemic. All funding options must be on the table."

Read Jubilee USA's IMF COVID response letter with nearly 270 signatories here.

Read the IMF policy paper on zero-interest lending here.

Puerto Rico Medicaid Funding Advances in Congress

Permanent Fix Needed for 1.5 million US Citizens, Asserts Religious Development Group

Medicaid funding for 1.5 million US citizens living in Puerto Rico expires on September 30, if Congress doesn't act. A subcommittee of the House Energy and Commerce Committee approved legislation that Congress could enact to fund the health program for the next five years.

“Poor and vulnerable people living in Puerto Rico rely on Medicaid," said Eric LeCompte the Executive Director of the religious development organization Jubilee USA Network. “If Congress does not act quickly, the impact will be devastating for Puerto Rico as the island wrestles with debt crisis, COVID and disaster recovery."

While the federal government contributes a specific percentage of Medicaid expenses for states, Puerto Rico and other US territories receive a smaller, fixed grant amount. 

“While fixing the funding shortfall for five years is critical, Puerto Rico needs a permanent, long-term fix,” shared LeCompte.

In February, Jubilee USA and 19 heads of US and Puerto Rico major religious bodies signed a letter to President Biden asking for expansion and full funding of Medicaid and other child poverty relief programs. The letter signers represent leaders from the Catholic, Methodist, Lutheran, United Church of Christ, Christian (Disciples) and Evangelical churches as well as the US and Puerto Rico Council of Churches, Catholic Charities, Caritas and the General Bible Society.

Read Jubilee USA's Puerto Rico Religious Leader Letter to President Biden here.

Jubilee USA Statement on G20 Finance Ministers Meeting and Communiqué

G20 finance ministers and central bank governors met in Venice, Italy, on COVID response, economic recovery, vaccines, debt relief and global tax agreements on July 9-10, 2021.

Eric LeCompte, Executive Director of the religious development organization Jubilee USA Network and a United Nations finance expert, releases the following statement on the G20 finance ministers meeting and communiqué:

“While the G20 is making critical progress in many COVID response areas, vaccine distribution and production is not moving quickly enough.

"At the next G20 meetings in October, we must agree on a process for everyone on the planet to be able to access vaccines. If we don't, the IMF predicts that the global economy will lose $9 trillion.

“Rising US interest rates mean more countries could be unable to pay their debts and the G20 and IMF will deal with even more defaults.

“The G20 is asserting that the private sector must offer adequate debt relief for any countries that apply for the G20 debt relief process.

“We welcome the G20's endorsement of creating $650 billion in emergency reserve funds or Special Drawing Rights by the end of the summer. Developing countries will receive more than $200 billion in new resources when the IMF takes a final vote.

"More than $400 billion of these new Special Drawing Rights reserve funds will go to wealthy countries.

"The G20 calls for an ambitious target for donating the Special Drawing Rights that rich countries receive to vulnerable countries. Unfortunately, there is no concrete amount for how much wealthy countries should donate to vulnerable countries.

"We must quickly agree on Special Drawing Rights donation vehicles to support all developing and vulnerable countries to access these resources to fight poverty, climate change and the coronavirus health crisis.

“The G20 is right to call on development banks to do more, but the G20 must also be clear on how we can inject much more capital into these banks so they can do more.

“The G20 agreement on global minimum corporate and digital tax is incredibly exciting progress on closing loopholes for tax evasion and avoidance.

“In upcoming tax agreement negotiations, we must do more to increase the benefits for developing countries.

“The G20 is aligning climate change action goals with the Paris Climate Agreement. This will help spur greater action during the November climate meetings the United Kingdom is hosting.

“International cooperation on climate targets and carbon prices needs to account for the impacts on the most vulnerable countries and people.” 

Read the G20 Finance Ministers Meeting Communiqué here.

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

Read Jubilee USA's response to the IMF approval of $650 bn in Special Drawing Rights here.

G20 Finance Ministers Meet in Venice on Global COVID Response

by Olivia Engling

Nearly 270 groups Call on G20 to Curb Tax Avoidance, Support Debt Relief and COVID Healthcare

G20 finance ministers begin two-day meetings in Italy on Friday on COVID response, economic recovery, vaccines, debt relief and global tax agreements. More than 265 groups signed a letter organized by Jubilee USA urging the G20 to act on debt relief, aid and COVID healthcare for developing countries.

“The G20 must do more to ensure global vaccine distribution,“ said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “While the G20 is making progress on a number of COVID response issues, we are concerned by the lack of progress on global vaccine distribution. If we don't do more to get vaccines to the developing world we will struggle with prolonged economic crisis and more virus mutations.”

President Biden called for vaccine patents to be temporarily waived in the face of the crisis and the IMF reports that without worldwide vaccine distribution by year-end, the global economy risks losing $9 trillion dollars.

In a report prepared for the G20 meeting, the IMF warns about the risk of rising US interest rates that could increase already high levels of debt in many countries. Up to 73 countries can seek relief under a G20 process to cut debt, known as the “Common Framework.”

“The G20 needs to follow the strong calls from the White House and Treasury for the private sector to provide significant debt relief,” shared LeCompte. “Because developing middle-income countries will see debts skyrocket if US interest rates rise, it's another reason to extend the G20's debt relief process to these countries."

A global corporate tax agreement is being forged during the meetings. In June, the G7 reached a deal on a minimum rate of at least 15% and new methods to tax digital companies. One hundred and thirty countries subscribed to the outline of a plan earlier this month.

“The G20 endorsement of a global tax deal will send a strong message that companies must pay their fair share in taxes to help the world recover from the coronavirus,” noted LeCompte who serves on United Nations finance expert groups. “As Secretary Yellen advocates, we must increase the global minimum corporate tax beyond 15%."

$650 billion of emergency reserves known as Special Drawing Rights are also on the agenda to fight the pandemic.

“As we move forward with a new creation of global reserve funds, the G20 must ensure that developing countries receive enough of these funds to emerge from this crisis with resilience," stated LeCompte.

Read the IMF note warning about US interest rates and global impacts here.

Read Jubilee USA's G20 COVID Response letter with 268 signatories here.

Read Jubilee USA's statement on the G7 Summit and communiqué here.

IMF Executive Board Approves Creation of $650 Billion Global Reserve Funds

By Olivia Engling

Critical COVID Aid Could Reach Developing Countries in August

The International Monetary Fund Executive Board agreed to create $650 billion of emergency currency known as Special Drawing Rights (SDRs) to help countries deal with the fallout from the coronavirus health and economic crises. The IMF’s main governing body, the Board of Governors, will take a final vote in coming weeks to move forward the SDRs creation. In a statement, IMF Managing Director Kristalina Georgieva indicated she expects the allocation as soon as August. 

“This is the biggest creation of emergency reserve funds that we've ever seen and developing countries will immediately receive more than $200 billion,“ said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network, that worked on the creation of the emergency currency since March of 2020.

In June, G7 leaders called for a global effort to mobilize $100 billion of SDRs for vaccines, protecting the environment and poverty reduction.

“Wealthy countries who receive emergency reserves they don't need should transfer those resources to developing countries struggling through the pandemic,” added LeCompte.

In February, Jubilee USA Network and the US Conference of Catholic Bishops sent a letter to Treasury Secretary Yellen and President Biden expressing support for a new $3 trillion SDR allocation. In March, Jubilee USA Network organized a roundtable with high-ranking religious leaders and Yellen that focused on SDRs. Jubilee USA Network also coordinated organizational letters targeting G20 leaders, the White House and the IMF, that gathered more than 200 signatures in support of SDRs.

Read IMF Managing Director Kristalina Georgieva's statement on SDR allocation here.

Read Jubilee USA's G20 COVID Response letter with over 265 signatories here.

Read Jubilee USA's statement on the G7 Summit and communiqué here.

Read Jubilee USA and US Conference of Catholic Bishops joint letter to the White House here.

View the agenda and read about the Jubilee USA Treasury High-Level Religious Leader Roundtable here.