The Jubilee Blog

G7 Summit Focuses on Ukraine War, Pandemic, Climate, Vaccines and Debt

Gathering in Bavarian Alps, President Biden and G7 Prime Ministers Confront Global Inflation, Food Security and Economic Crises

Washington DC – On Sunday, G7 presidents and prime ministers begin their three-day summit under the German Presidency. Meeting at the Schloss Elmau resort, the leaders deliberate on the pandemic, Ukraine war, food shortages, vaccines and climate issues.

“We are dealing with crisis on top of global crisis,” shared Eric LeCompte, Executive Director of the religious development group Jubilee USA Network and a United Nations finance expert. “Most countries were struggling to get through the pandemic and couldn't confront the challenges of climate change. Now the Ukraine war is creating a growing food crisis for many of those same countries.”

In a petition to G7 leaders, more than 50 African religious leaders asked for relief measures for the continent struggling with food, climate and health crises. Jubilee USA worked with religious leaders in Africa on the statement. Signers of the statement include Bishops and representatives from the Catholic Symposium of Episcopal Conferences of Africa and Madagascar, Caritas Africa, the Church of Pentecost in Ghana and the All Africa Conference of Churches. In addition to other measures, the religious leaders requested “debt relief initiatives for African countries, and . . . measures, including domestic legislation, to compel full public and private creditor participation and transparency.”

Legislation currently before New York State lawmakers requires private creditors to provide debt relief at the same level that governments and public institutions provide to struggling countries. More than 60% of developing country debt is in private sector hands.

“Inflation, economic shocks and food shortages are all tied to the debt crises developing countries are facing,” stated LeCompte. “The single most meaningful commitment the G7 could make is to support legislation in G7 countries that ensures private and commercial lenders contribute to debt relief."

While debt and inflation will be key focuses of the upcoming meetings, leaders are set to endorse a global initiative for food security and a plan to address climate change.

“G7 countries hold about $400 billion in emergency pandemic currency that could be given to development banks and used to tackle climate and food challenges,” noted LeCompte.

The International Monetary Fund created $650 billion in emergency currency known as Special Drawing Rights for coronavirus relief last year. The majority of these funds were received by developed countries who can donate the funds to developing countries. Several of these wealthy countries pledged $60 billion of their Special Drawing Rights to fund IMF cheap loans to developing countries.

Read the African religious leaders' petition to G7 leaders here. 

Read Jubilee USA's press release on the New York Taxpayer and International Debt Crises Protection Act here. 

Read Jubilee USA's press release on the G7 finance ministers meeting here.

World Trade Organization Vaccine Decision Won't Do Enough to Address the Pandemic in Developing Countries, Says Development Group

Washington DC – Ministers of World Trade Organization (WTO) member countries agreed on a limited waiver of COVID-19 vaccine patents to help developing countries acquire coronavirus vaccines.

“For countries struggling to protect their people against continued COVID outbreaks, this decision won't do enough," said Eric LeCompte, Executive Director of the religious development group Jubilee USA. “After more than two years of a pandemic that cost millions of lives, developing countries need a suspension of multiple WTO rules in order to boost access to vaccines, tests and treatments."

Meeting for the first time since 2017, the WTO Ministerial lasted an additional day due to difficulties in achieving a consensus. In certain circumstances, the new decision allows developing countries to make vaccines without having to seek the vaccine patent owner’s approval. Development groups argue that similar vaccine approvals already largely exist, in WTO rules before this deal. 

The International Monetary Fund estimates that more than 100 countries will fail to reach vaccination targets to contain the pandemic globally. WTO members agreed to negotiate possible extensions of the waiver for tests and treatments within six months.

“Tests and treatments should have been part of the same package," added LeCompte. "Access to tests, treatments and vaccines is essential to limit the threat of new and deadlier mutations that can affect all of us.” 

New York Legislation Resolves Developing Country Debt Crises and Protects US Taxpayers

Bill Can Ease Global Supply Shocks and Help Vulnerable People Weather Pandemic and Ukraine Economic Shocks

Washington DC – A New York State Assembly bill requires private creditors to join debt relief initiatives for developing nations struggling with debt crises, the pandemic and Ukraine war-related economic shocks. The New York Taxpayer and International Debt Crises Protection Act, was introduced in May by Assemblymember Patricia Fahy, Chair of the Banks Committee. 

“This legislation will help resolve debt in developing countries more easily, many of whom are reeling from the effects of the COVID-19 pandemic and Ukraine invasion,” said Fahy. “I’m proud to introduce this legislation and require that private creditors join in debt relief funding deals for developing countries to resolve financial and debt crises. While you might not know it, most of the world’s private debt is arbitrated here in New York, and this legislation will provide much needed debt relief across the board.”

Over 50% of the world's debt held by private creditors is contracted under New York State law. Fahy's bill ensures private creditors participate in debt relief initiatives at the same level as the US government, other governments and other creditors.

In the first year of the pandemic, developing country debt rose by five times the average increase of previous years. Under the leadership of the Trump and Biden Administrations, G20 countries established a process that allows up to 73 of the world’s poorest countries to obtain debt relief from all creditors. Although the G20 and US government were clear that private creditors should provide debt relief, private creditors have not announced any debt relief agreements to date.

Treasury Secretary Janet Yellen and the IMF consider pandemic-related economic disruptions are partly responsible for record-high inflation in the US. Supporters of the legislation assert that US and New York residents benefit from the bill.

“People living in New York and across the United States face supply shocks and health risks because of crises in developing countries,” said Eric LeCompte, Executive Director of the religious development coalition Jubilee USA Network. LeCompte's bipartisan organization won numerous global debt relief agreements over the group's 25 year history. “Other countries whose courts settle debt disputes should follow Assemblymember Fahy’s leadership and implement similar critical initiatives.”

While the majority of the world's private sector and bank debt is contracted under New York law, more than 40% is contracted under United Kingdom laws. The remaining portion is mostly held by Germany, France, Japan, Singapore, Belgium and Australia.

"This New York State bill is modeled after highly successful legislation in the UK, to ensure that taxpayer money sent to feed the hungry is not diverted to pay creditors," said Georgetown Law professor Anna Gelpern, who participated in discussions on this legislation. "The new law would be an important addition to the crisis management toolkit at a time when debts in countries are at critical levels, and governments are struggling to meet their citizens' basic human needs. A transparent, coordinated, equitable debt resolution process is essential to get us through this period." 

View the NY Taxpayer and International Debt Crisis Protection Act and Bill Memo here.

Read Jubilee USA's press release on the introduction of the bill here.