The Jubilee Blog

COP26: New Research Shows Latin American and Caribbean Countries Face Growing Climate Risks

Debt Relief Can Fund Climate Action, Says Religious Development Group

By Olivia Engling

As climate talks continue in Scotland, new research shows that developing countries lack the resources to respond to the climate crisis.

"The Glasgow meetings are critical to protect our planet and the poor who suffer the worst impacts of climate change,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “Climate-induced natural disasters and food shortages disproportionately affect developing countries."

Ahead of COP26, Jubilee USA Network and LATINDADD released the Atlas of Vulnerability, focused on 24 Latin American and Caribbean developing countries. The map and research found 75% of countries fall below the global average in country capacity to respond to climate change.

"Debt relief can be an effective tool for helping developing countries take action to respond to climate-caused challenges," noted Jubilee USA's Senior Policy Director, Aldo Caliari. Caliari was one of the authors of the new climate research and wrote a paper last year on debt, climate and pandemic response.

The IMF calculates that developing country costs to deal with climate change rises to $140 billion to $300 billion by 2030. According to the United Nations, half of developing countries pay more than 25% of their budgets servicing debt. In October, 48 vulnerable countries asked for a process to use debt relief to support climate action.

“Developing countries struggle with rising debt levels and responding to the pandemic,” added LeCompte. “Debt relief and additional aid are essential for developing countries as they fight climate change."

In 2009 wealthy countries promised $100 billion in annual financing to developing countries by 2020. According to the OECD, developed countries provided almost $80 billion in 2019 and according to 2020 estimates, it was unlikely that the $100 billion target was met. COP26 brings together delegates from 200 countries to agree on climate actions. The meeting in Glasgow, Scotland comes six years after the Paris Agreement, a deal to address the earth's warming temperature caused by fossil fuel use.

Major Religious Institutions Urge President, IMF and G20 to Cancel Debts and Use Reserves to Protect Poor

Many of the largest religious institutions are calling for financial crisis protections, debt relief and additional resources to protect the world's poor in what the IMF calls the greatest financial crisis since the Great Depression. The 80 groups joined a letter organized by Jubilee USA Network to confront the coronavirus crisis and it was delivered to the White House, G20 and IMF on Tuesday.

Signers include: The Episcopal Church, Evangelical Lutheran Church in America, National Council of Churches, Presbyterian Church (USA), Unitarian Universalist Association, United Church of Christ, United Methodist Church, Jubilee USA Network, American Friends Service Committee, Church World Service, Buddhist Association of the United States and the Religious Action Center of Reform Judaism. The largest labor union in the United States, the AFL-CIO joined the Jubilee USA letter.

The signers join calls from Pope Francis, the US Catholic Bishops and 165 world leaders encouraging additional resources, aid and debt relief to ensure all countries can withstand the crisis.

"Religious institutions and their partners are making a moral call for all people on the planet to be able to have enough resources to weather the health and economic impacts of the coronavirus. There is already momentum behind debt relief and emergency financing," stated Jubilee USA Executive Director Eric LeCompte. LeCompte is a United Nations finance expert and has monitored IMF meetings since 2008. "We are urgently calling on the G20 and IMF to access global reserve funds so that both developed and developing countries can get through the greatest financial crisis of our time. We need to use the special drawing rights or SDRs like we did after the 2008 crisis."

"Special drawing rights," debt relief and additional emergency financing are the issues that the G7, G20, IMF and World Bank are focusing on during virtual spring meetings this week. On Tuesday, the IMF released a report dubbing the "Great Lockdown" as the greatest financial crisis since the Great Depression.

The US Treasury released a statement Tuesday after a virtual meeting with G7 leaders expressing support for the world's 76 poorest countries to stop debt payments to provide health services in the developing world.

On Monday, the IMF announced it would cancel 6 months of debt payments for 25 poor countries in an effort to boost their health systems and economies.

"Urgent and bold actions are needed now if we are to survive the greatest health and economic crisis of our lifetimes," said LeCompte.

Read Religious Leader's Letter the President Trump, IMF and G20 here

Read about the April 2020 World Economic Outlook here

Read about the IMF's Debt Relief for 25 Poor Countries here

Read about the Catholic Bishops Letter to Urge President Trump to Lead Global COVID-19 Debt Relief here

Read Jubilee USA's March 23rd letter to IMF on a health and economic COVID-19 plan  here

Read Jubilee USA's April 1st letter to the IMF on reserve gold funds here

 

 

Credit Suisse Banker Pleads Guilty in Mozambique Loan Scandal

Washington DC - On Friday, former Credit Suisse banker Andrew Pearse pled guilty in US Federal Court for accepting millions of dollars in a fraud scheme that led to a $2 billion Mozambique loan scandal and debt crisis in the East African country. Pearse and six others are accused of taking $200 million in the scheme.

“Mozambique, one of the poorest countries in the world, is dealing with a financial crisis because of the greed of corrupt bankers," said United Nations corruption and finance expert Eric LeCompte and Executive Director of the religious development group Jubilee USA Network. “This behavior is only possible because of a lack of global loan transparency and a lack of public budget transparency in Mozambique.” 

US prosecutors argue that Credit Suisse and Russian-based VTB finance group hid secret loans to the Mozambique government by bribing bank and government officials. The loans were supposed to support the tuna fishing industry, but instead supported the outfitting of boats for military attack crafts. When the secret loans to Mozambique were revealed in 2016, the IMF and World Bank cut ties with the country, halting development funding. This year, Mozambique was hit with two cyclones further impacting the debt ridden and poverty stricken country.

"Mozambique is struggling to recover from a debt crisis and terrible natural disasters," noted LeCompte.

Religious Leaders Letter on NAFTA highlighted by CNS and Crux

By Lydia Andrews 

Catholic News Service and Crux featured articles on the statement issued this week by Jubilee USA and religious leaders on NAFTA and access to medicines in trade agreements.

Read excerpt below and follow link to the full Crux and Catholic News Service articles. 

Religious leaders say new NAFTA shouldn't restrict access to medicines 

Archbishop Timothy P. Broglio of the U.S. Archdiocese for the Military Services was one of seven U.S. religious leaders asking that any new North American Free Trade Agreement “avoid enhanced and extended monopolies on life-essential medicines.”

The May 18 letter, sent to President Donald Trump, administration officials and members of Congress, added: “Our faith traditions call us to care for the sick and respond to the needs of the poor in our societies. Trade agreements can have enormous impacts on the ability of the sick and the poor to access the medicines they need for healing and even survival.”

“We agree with the provisions of the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights, currently in effect in all NAFTA countries. The TRIPS agreement calls for respect of intellectual property rights, including those for medicines,” the letter said.

“Crucially, as was underscored by the Doha Declaration on TRIPS and Public Health, it also recognizes each nation’s right to take necessary steps to ensure that medicines are available to all of their residents.”

“This ‘May 10th Agreement’ recognizes the flexibility in intellectual property rights provisions with regard to pharmaceuticals that developing countries sometimes need in order to serve the public health needs of their people,” the letter said. “We hope our political leaders can come together once again on these principles in support of the most vulnerable.”

“We ask that a renegotiated NAFTA reaffirm the TRIPS public health protections that enable the United States and other countries to promote the human right to health and access to medicines for all,” it added.

NAFTA/Trade Medicine Access, Interfaith Statement

By Lydia Andrews 

The below statement was sent to President Trump, Members of Congress and Administration officials on May 18^th, 2018. 

NAFTA and International Public Health: An Interfaith Call for Access to Medicines 

Recognizing the inherent dignity of the human person, our faith traditions call us to care for the sick and respond to the needs of the poor in our societies. Trade agreements can have enormous impacts on the ability of the sick and the poor to access the medicines they need for healing and even survival.

Therefore, we agree with the provisions of the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), currently in effect in all NAFTA countries. The TRIPS agreement calls for respect of intellectual property rights, including those for medicines. Crucially, as was underscored by the Doha Declaration on TRIPS and Public Health, it also recognizes each nation’s right to take necessary steps to ensure that medicines are available to all of their residents. 

We would also like to take this opportunity to commend the Administration’s defense of sovereignty on the issue of investor-state arbitration; each state has not only the right but the obligation to safeguard the common good within their nations.

At this time, we recall the Bipartisan Agreement on Trade Policy espoused by President George W. Bush and leaders of both parties in Congress in May 2007. This “May 10^th Agreement” recognizes the flexibility in intellectual property rights provisions with regard to pharmaceuticals that developing countries sometimes need in order to serve the public health needs of their people. We hope our political leaders can come together once again on these principles in support of the most vulnerable.

We call on you to ensure that no terms of a renegotiated NAFTA go beyond the TRIPS agreement mandates, and avoid enhanced and extended monopolies on life-essential medicines. Instead, we ask that a renegotiated NAFTA reaffirm the TRIPS public health protections that enable the United States and other countries to promote the human right to health and access to medicines for all.

Most Reverend Timothy P. Broglio
Chairman of the Committee on International Justice and Peace, The United States Conference of Catholic Bishops

Most Reverend Michael B. Curry
Presiding Bishop and Primate, The Episcopal Church

Reverend Dr. Susan Henry-Crowe
General Secretary of the General Board of Church and Society, The United Methodist Church

Reverend Dr. John C. Dorhauer
General Minister and President, The United Church of Christ

Reverend Elizabeth A. Eaton
Presiding Bishop, The Evangelical Lutheran Church in America

Reverend Dr. J. Herbert Nelson
Stated Clerk of the General Assembly, The Presbyterian Church (U.S.A.)

Eric LeCompte
Executive Director, Jubilee USA Network

Debt, Corruption and Tax Policies Impact Poverty, Says Vatican at United Nations

By Lydia Andrews

During United Nations Human Rights Council meetings last week, Archbishop Ivan Jurkovič, the Geneva based Vatican representative stated, “We can no longer frame the debt crisis as an exclusively economic problem. It affects future generations, as well as the social conditions that allow the enjoyment of human rights of vast numbers of people entitled to the solidarity of the whole human family.”

Jurkovič’s intervention during the UN Meetings called for, “stronger policies around public budget transparency, responsible lending and borrowing, securing greater development protections, stronger debt restructuring policies and fiscal strategies that curb tax evasion and corruption.”

“Archbishop Jurkovič’s speech is incredibly timely and expresses urgency to improve debt, tax and transparency policies to protect vulnerable people,” expressed Eric LeCompte who leads the interfaith religious development group, Jubilee USA. The organization counts the Catholic Church among its founders working with Jubilee USA for over 20 years on economic issues. “The speech is important because it calls for world leaders to promote development measures that tackle inequality and prevent financial crisis.”

The speech was made during The 37th Session of the Human Rights Council on Report of the Independent Expert on the effects of foreign debt and other related international financial obligations of States on the full enjoyment of human rights. The report that the Vatican and world governments discussed at the United Nations session was prepared by UN Independent Expert, Juan Pablo Bohoslavsky.

“The Holy See recognizes that severe human rights impacts resulting from the recent financial crisis have been widely and well documented. Policy responses to the crisis have revealed a deep-seated structural neglect of human rights in economic policy formulation, insufficient protection of the most disadvantaged and a lack of attention to participation, consultation, transparency and accountability,” stated Jurkovič whose official title is the Permanent Observer of the Holy See to the United Nations.

During the address, Jurkovič reiterated concerns around “predatory firms that take advantage of economies in distress,” or groups popularly known as “vulture funds.” The statement endorsed a United Nations “bankruptcy” process for countries that is supported by Pope Francis. Setting targets to curb global corruption and tax evasion were also encouraged during the Vatican diplomat’s remarks.

“The developing world loses more than a trillion dollar a year because of tax evasion, corruption, bad debt policies and vulture funds,” said LeCompte who serves on UN expert finance groups. “From Puerto Rico to Mozambique, people are suffering because of a lack of transparency in the financial system. We have the ability to dramatically reduce poverty, if we can improve accountability in global economic policies.”

Read Archbishop Jurkovič’s United Nation Holy See Speech

Read the Juan Pablo Bohoslavsky UN Independent Debt and Human Rights Expert Report

US-Africa Summit Focuses on Trade, Poverty, Growth

by Abe Bobb

Washington, DC -  This week, more than 40 leaders from across Africa gathered in Washington, DC for the US-Africa Leaders Summit. The summit focuses on issues of economic growth and investment, with hundreds of millions of dollars in business deals being announced during the week-long event. Trade is a major topic of the summit, as the US attempts to keep pace with China's increased economic involvement with the African continent.

Eric LeCompte, Executive Director of the religious anti-poverty group, Jubilee USA Network, releases the following statement:

"The summit puts a spotlight on the most important issues facing Africa today, from trade to corporate tax avoidance to poverty.

"Africa is losing billions of dollars a year to illicit financial flows. For every dollar it receives in official aid, Africa loses about $15 to debt, corporate tax avoidance and illicit flows. Money is flowing out far faster than it is flowing in.

"We need to create structures to end the flow of dirty money.

"As World Bank President Jim Kim notes, debt relief and economic growth in Africa are intertwined.

"It's imperative that tax, debt and trade policies benefit the world's poorest citizens."

Jubilee: From the Caribbean to the Vatican

By Merry Pham

Photo: Jubilee delegation with Cardinal Turkson in the Vatican

It's been a busy Spring at Jubilee USA. From the Supreme Court to the Caribbean to the Vatican, Jubilee USA has been working to move forward critical financial reforms to end global poverty. Our Executive Director, Eric LeCompte, touches on our current campaigns and some of the biggest issues facing global poverty today in an interview with Catholic News Service.

 

Jubilee campaign for debt relief gains momentum, allies in the Vatican

BY DENNIS SADOWSKI 
Catholic News Service

WASHINGTON (CNS) — A Washington-based organization and its worldwide partners working to carry on the biblical principle of jubilee have gained the attention of the Vatican.

Representatives of Jubilee USA Network and its partners discussed the need for debt relief for poor countries and international financial reform for 90 minutes May 21 in the Apostolic Palace with Cardinal Pietro Parolin, Vatican secretary of state, and Cardinal Peter Turkson, president of the Pontifical Council for Justice and Peace.

Eric LeCompte, Jubilee USA’s executive director, and others, including Father Sean Doggett of the Diocese of St. George’s in Grenada, also explained their work during a brief audience with Pope Francis.

Read the full article.