The Jubilee Blog

African Catholic Bishops: Marrakesh Meetings Should Act on “True Jubilee of Hope in Africa”

Debt, Finance and Future Lending Policies Urged in Advance of 2025 Jubilee Year

World leaders attending the annual IMF, G20 and World Bank meetings should promote urgent debt relief, aid and lending policies to address the interlinked crises African countries face, noted a body that represents African Catholic Bishops. The statement from the Justice, Peace and Development Commission of the Catholic Symposium of Episcopal Conferences of Africa and Madagascar (SECAM) was issued as the meetings are held for the first time in 50 years in an African location.

“To successfully address debt crises, it is crucial to tackle the complexities arising from multiple creditors. This necessitates the coordination of efficient, prompt, and comprehensive policies that encompass both public and private creditors,” the bishops said.

The statement, “A Call to Leaders Actions for a True Jubilee of Hope in Africa,” follows on Pope Francis’ declaration of year 2025 as a Jubilee year, under the motto “Pilgrims of Hope.” 

The faith leaders pointed out that in Africa nearly 600 million people live in poverty and near 280 million are hungry, calling to remove the obstacle of debt that prevents many countries from having the resources to invest in crisis response and protect their most vulnerable. They recalled that in 1999, then Holy Father St. John Paul II linked debt relief to the fight against poverty, stating that the message remains true today.

The bishops referred to decisions taking place regarding increasing international development banks ability to lend.

“The momentum for reform of international financial institutions presents an opportunity to adapt them according to present needs and requirements. This can be achieved through strengthening human development values in their missions, boosting their financial capital, and improving their instruments for financing,” the bishops said. “Moreover, . . . any additional resources [should come with] increased accountability and meaningful involvement of the communities and societies affected by their programmes.”

The Catholic leaders also asked for policies to prevent new cycles of indebtedness, by “setting foundations for responsible lending and borrowing, debt contract authorization and disclosure safeguards and debt reduction clauses that trigger automatically when debtors suffer natural disasters or other shocks.”

"African religious leaders are on the front lines of countries facing debt, climate and food crises," stated Aldo Caliari, the Senior Director of Policy for Jubilee USA Network. Jubilee USA supports and advises the African Catholic Bishops on economic issues. "Africa Catholic Bishops are calling for real changes in the financial system to protect their people and our planet."

The statement referred to the threat of climate change in Africa, the most climate-vulnerable region and the one least responsible for global warming.

“In the face of a planet that is on the brink of becoming uninhabitable. . . We pray that [our leaders] make choices that promote life, not only for themselves but also for future generations, as it is written: “. . . choose life, so that and your children may live” (Dt 30:19),” they added.

Read the Justice, Peace and Development Commission of the Catholic Symposium of Episcopal Conferences of Africa and Madagascar (SECAM) statement here.

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

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

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

Read Jubilee USA's press release on Annual Meetings agenda here.

Read Jubilee USA's press release on IMF chief Kristalina Georgieva's curtain raiser speech here. 

Join Jubilee USA and partners for IMF and World Bank event: "Defusing the Debt Time Bomb: The Role of an Effective Crisis Prevention and Resolution Architecture." More information here.

IMF and World Bank Meetings Wrestle with Low Growth, High Interest Rates, Debt Crises and Climate Challenges

Israel and Gaza Conflict Raises Concerns for Global Economy

As world leaders arrive for the Annual IMF and World Bank Meetings, the IMF forecasts the global economy to grow 3% this year, which remains below the average of growth for the two decades before the pandemic.

"According to the IMF, our economy is still struggling to recover from the impacts of the pandemic and other crises,” said Eric LeCompte, Executive Director of Jubilee USA Network, which focused on IMF policies for more than 25 years. "Less financial stability means more conflict, more poverty and more crises."

Both of the released flagship reports, the Global Financial Stability Report and the World Economic Outlook were prepared before the emergence of the Israel and Gaza conflict.

"While the report could not consider the Israel and Gaza conflict, it does see the escalation of the Ukraine war as a financial stability risk," shared LeCompte. "The loss of human life due to war and conflict is unacceptable. Beyond the deaths, conflict also hurts our global economy and the poor everywhere."

The IMF predicts global inflation will fall almost 2 percentage points to 6.9%. The companion Global Financial Stability Report expressed concerns on continued inflation and warned that measures to bring it down will need to continue.

"The growing risks to financial stability are deeply concerning,” shared LeCompte. “But some ways that we fight inflation, like raising interest rates, creates higher debt loads for countries and makes food too expensive for all of us.”

The IMF called for preemptive debt restructurings in the many countries with high debt risks.

"High interest rates mean that developing countries will have higher debt payments that lead to even more debt crises,” noted LeCompte who serves on United Nations finance expert groups. "Quicker and more comprehensive debt restructurings are needed."

An entire chapter of the financial stability publication focused on the role of the financial sector in regards to climate investment needs.

"In developing countries, climate investments will need to rise to $2 trillion per year by 2030. The IMF expects private finance will need to provide the lion’s share of that amount,” stated LeCompte. "Developing countries need resources to tackle climate change. If they don't, it will impact financial stability."

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

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

Read the full Global Financial Stability Report here.

Read the full World Economic Outlook Report here.

Read Jubilee USA's press release on Annual Meetings agenda here.

Read Jubilee USA's press release on IMF chief Kristalina Georgieva's curtain raiser speech here. 

Join Jubilee USA and partners for IMF and World Bank event: "Defusing the Debt Time Bomb: The Role of an Effective Crisis Prevention and Resolution Architecture." More information here.

Jubilee USA Statement on IMF Global Financial Stability Report

The IMF releases the Global Financial Stability Report and raises global concerns over continued inflation, the banking system and climate investments.

Eric LeCompte, Executive Director of the religious development group Jubilee USA Network and a United Nations finance expert who monitored IMF meetings since 2010, releases the following statement on the IMF Meetings and the Global Financial Stability Report:

"The growing risks to financial stability are deeply concerning.

"Less financial stability means more conflict, more poverty and more crises.

"The IMF warns that inflation-fighting measures will need to continue.

"Some ways that we fight inflation, like raising interest rates, creates higher debt loads for countries and makes food too expensive for all of us.

"For the many developing countries at risk of debt crises, the IMF calls for preemptive debt restructurings.

"While the report could not consider the Israel and Gaza conflict, it does see the escalation of the Ukraine war as a financial stability risk.

"The loss of human life due to war and conflict is unacceptable. Beyond the deaths, conflict also hurts our global economy and the poor everywhere.

"High interest rates for extended periods will likely infect the banking system and impact all of us as borrowers cannot repay their loans."

"In developing countries, climate investments will need to rise to $2 trillion per year by 2030. The IMF expects private finance will need to provide the lion’s share of that amount.

"Developing countries need resources to tackle climate change. If they don't, it will impact financial stability.

"All resources must be connected to zero emission targets."

Read the full Global Financial Stability Report here.

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

Read Jubilee USA's press release on Annual Meetings agenda here.

Read Jubilee USA's press release on IMF chief Kristalina Georgieva's curtain-raiser speech here. 

Jubilee USA Statement on IMF World Economic Outlook Report

As world leaders arrive in Marrakesh for the Annual IMF and World Bank Meetings, the IMF releases its flagship World Economic Outlook report. The IMF projects the global economy to grow 3% this year, which remains below the average of growth for two decades before the pandemic.

Eric LeCompte, Executive Director of the religious development group Jubilee USA Network and a United Nations finance expert who monitored IMF meetings since 2010, releases the following statement on the IMF Meetings and World Economic Outlook Report:

"According to the IMF, our economy is still struggling to recover from the impacts of the pandemic and other crises.

"Since 2020, economic growth has been uneven and unequal.

"The IMF didn't have time to factor in the terrible Israel and Gaza conflict that will affect growth.

"Another casualty of the tragic violence in Gaza and Israel will be downturns in economic growth and slower global decisions on development.  

"When growth goes down in wealthier economies, most developing economies are hurt.

"Compared to 15 years ago, the distance between average incomes in rich and poor countries has grown dramatically. 

"As long as there are fears of continuing inflation, high interest rates will continue.

"High interest rates mean that developing countries will have higher debt payments that lead to even more debt crises.

"When borrowing costs are too high and countries cannot access resources, we'll face new food shortages and new debt crises."

Read the full World Economic Outlook Report here.

Read Jubilee USA's press release on Annual Meetings agenda here.

Read Jubilee USA's press release on IMF chief Kristalina Georgieva's curtain raiser speech here.

World Leaders Focus on High Debt Levels and Poor Economic Growth as Morocco Meetings Begin

World leaders, finance ministers, business groups, academics and development organizations descend on Marrakesh, Morocco, for the IMF and World Bank Annual Meetings. IMF head Kristalina Georgieva reports that the global economy lost $3.7 trillion due to shocks since 2020 and that slow and unequal growth continues. 

“Debt, climate issues and poor economic growth top the agenda during these meetings,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. LeCompte is in Marrakesh for the IMF and World Bank meetings. “It's important that we are meeting in Africa where the average income hasn't changed since 2015 and the region is dealing with a serious climate crisis."

This is the first time since 1973 in Kenya that the IMF and World Bank Annual Meetings have taken place in Africa. The IMF, World Bank, G20 and G7 meet October 9th through 15th.

Read Jubilee USA's press release on IMF chief Kristalina Georgieva's curtain raiser speech here. 

Join Jubilee USA and partners for IMF and World Bank event: "Defusing the Debt Time Bomb: The Role of an Effective Crisis Prevention and Resolution Architecture." More information here.

IMF Speaks: World Economy Loses $3.7 Trillion Due to Pandemic and Economic Shocks

Successive shocks since 2020 lost the world economy $3.7 trillion and poor countries are hit the hardest, noted IMF Managing Director Kristalina Georgieva. Georgieva delivered the annual curtain-raiser speech in Abidjan, Cote d’Ivoire, ahead of the upcoming Morocco IMF, G20 and World Bank Annual Meetings.

“Georgieva highlights that most of the world is worse off since the pandemic began,” said Eric LeCompte, Executive Director of the religious development organization Jubilee USA Network. LeCompte will participate in the upcoming Morocco meetings. “More people have become poor and inequality has gotten worse.”

According to the IMF, global economic growth remains below the 3.8 percent average of the two decades before the pandemic. 

Georgieva shared in her speech that more than half of low-income countries and one-fifth of emerging economies remain at high risk of debt crisis.

“At least 60 countries are in debt crises,” stated LeCompte who serves on United Nations expert groups on global debt. “As we head to Morocco meetings, world leaders can help solve the debt crisis or continue to do too little, too late."

Georgieva underscored the IMF deployment of $1 trillion since the pandemic, including Special Drawing Rights – an emergency currency that the IMF issued in 2021. She called for increasing IMF resources.

“Special Drawing Rights played a critical role in addressing the pandemic and rising global poverty," stated LeCompte. "Our world needs more aid like this as soon as possible."

 

Pope Francis Releases "Laudate Deum" Ahead of Global Economy and Climate Meetings

Pope Francis urged international cooperation to tackle environmental crises, in a document released today. Laudate Deum – which in Latin means “Praise God” – is a follow-up to his 2015 Laudato Si, the most comprehensive Encyclical on climate and the environment.

“The Pope makes clear that the environmental crisis and plight of the poor are really the same crisis,” stated Eric LeCompte the Executive Director of the religious development group Jubilee USA Network. “Wealthy countries need to take responsibility for the ways they've caused the climate crisis and support poor countries that don't have the resources to deal with the crisis.”

Pointing to droughts and floods, dried-up lakes, communities swept away by seaquakes and flooding, Pope Francis laments that in spite of many negotiations and agreements, the transition to cleaner energy sources and lower emissions is not progressing quickly enough.

Last year, a group of experts estimated developing countries need $1 trillion in aid and finance annually to meet climate goals. Next week, the IMF and World Bank hold their Annual meetings in Marrakesh, the first time in 50 years that the meetings take place in Africa. According to the African Development Bank, Africa is the world's most vulnerable region to climate change. Leaders at the meetings will discuss proposals on debt and changes to the mission of the World Bank and other development banks to deal with the climate crisis and other global challenges.

In a chapter devoted specifically to the upcoming UN conference on climate change, COP28, that Dubai will host in November and December, the document states that it “can represent a change of direction or … will represent a great disappointment.”

“One of the most important messages from Francis is that world leaders must work together," noted LeCompte. "We can only deal with the challenges of poverty and the climate crisis through cooperation."

Read Laudate Deum: Apostolic Exhortation of Pope Francis here.

Read Encyclical Letter Laudato Si here.

G20 New Delhi Summit: Jubilee USA Statement

G20 heads of state meet in New Delhi, with global economic challenges, development, debt and climate on the agenda. The leaders released their summit declaration.

Eric LeCompte is the Executive Director of the religious development group Jubilee USA Network who has tracked G20 meetings since 2010. LeCompte, releases the following statement on the G20 Leaders' Summit and Declaration:

"Amidst government tensions and global crises, it's pretty amazing the G20 agreed on a declaration.

"The G20 recognized that only 12 percent of the 2030 global development goals are on track.

"Debt relief is essential if countries are to have a chance at achieving development goals that reduce poverty and protect our planet.

"The G20 agreed that existing debt relief processes need to be faster, predictable, efficient and comprehensive.

"Unfortunately, actions to improve debt relief are moving too slowly.

"We still don't have a vehicle to push greater participation of debt relief from the private sector.

"With 60 countries in debt crises and skyrocketing interest rates, we only have a G20 process that has involved 4 countries.

"We are at a point where the G20 needs to do much more on debt relief to ease the growing global debt crisis.

"The G20 development bank expert group called for increasing resources for development banks by $260 billion annually. The G20 needs to figure out how to get these resources that are critical for addressing poverty.

"G20 finance ministers meet in Marrakesh in October to discuss further measures on strengthening development banks.  

"Ahead of the meeting, the IMF reported that the use of $650 billion of emergency pandemic aid or Special Drawing Rights was effective.

"The poorest countries were able to afford vaccines and essential services for their people due to Special Drawing Rights.

"The IMF report hints at the important role Special Drawing Rights could play in future international assistance efforts.

"The decision to make the African Union a permanent member of the G20 gives a voice to the poorest and most climate-vulnerable region in the world."

Read the G20 declaration here.

Read Jubilee USA's press release in advance of the G20 summit here.

G20 Leaders Summit Focuses on Debt, Economic Development and Climate Change

World Bank Reports a Third of Developing Countries Face Slower Growth than Before Pandemic

G20 presidents and prime ministers gather in India for their annual summit to discuss global economic development. Absent from the meetings this year are Russia's President Vladimir Putin and President Xi Jinping of China. 

"G20 leaders are meeting as countries can't get out of debt and face food shortages and rising inflation," stated Eric LeCompte who heads the religious development coalition Jubilee USA Network. "As we face a number of global crises, the war in Ukraine is slowing decisions on global development."

The World Bank reported that one-third of developing countries will grow more slowly next year than in 2019, before the pandemic crisis. Because the Federal Reserve and other major central banks increased interest rates, developing countries are paying more on their debts.

“At least 60 countries cut human services and their climate change efforts in order to pay their rising debts," stated LeCompte. “The G20 has a critical role in moving forward more effective and efficient debt relief processes."

The group will review the debt situation in developing countries. In June, public and government creditors agreed to reduce debt for the second of four countries to apply to the G20's Common Framework, a debt reduction process the group set in 2020. Private creditors have not committed to matching debt reductions.

For the last two years the G20 had a focus on increasing resources for multilateral lenders and development banks. India’s G20 Presidency appointed former Secretary of Treasury Larry Summers and former Chairperson of the Fifteenth Finance Commission of India Nand Kishore Singh to chair a group of experts to examine additional needs to strengthen these multilateral lenders. 

In August, Africa interfaith religious leaders representing Catholic, Anglican, Presbyterian and other Christian denominations, the All Africa Council of Churches, Muslim and indigenous faiths called for increasing multilateral development bank finance.

“We welcome the international community’s exploration of ways to increase [multilateral development banks’] financing capacity and support combining new ways to use capital and capital increases in order to reach the desired scale,” the Africa religious leaders said in their August statement.

The New Delhi summit also reviews the impact of $650 billion in pandemic relief aid through an IMF 2021 emergency currency creation or Special Drawing Rights.

“The IMF reports that this pandemic relief helped the global economy, lowered borrowing costs and supported critical crisis spending in poor countries,” shared LeCompte. "Given the positive results from the use of Special Drawing Rights, the G20 should use this relief tool more widely."

As advanced economies received more than $400 billion in SDRs, the G20 agreed to transfer $100 billion to countries in need. The IMF reports pledges of more than $24 billion SDRs to its Poverty Reduction and Growth Trust, which lends to the poorest countries at zero-interest rates, and over $45 billion to a recently-created vehicle to provide long-term, low-cost pandemic preparedness and climate interventions loans.

“Special Drawing Rights held by wealthy countries are a cost-effective way they can contribute significantly to boosting development finance through the African Development Bank and other funding vehicles for climate, food, agriculture, infrastructure and other poverty-reducing priorities,” the Africa interfaith religious leaders stated.

Read Jubilee USA's press release on the Africa interfaith religious leaders meeting here.

Find more details on the G20 Summit here.

Find the IMF SDR Assessment Report here.

Read the Report of the G20 Independent Experts Group on Strengthening Multilateral Development Banks here.

Annual Federal Reserve Retreat Focuses on Global Economic Changes

In Wyoming, Central Bank Heads and Economists Discuss Inflation and Debt

Wrestling with inflation, country debt levels at historic highs and pandemic related economic shocks, many of the world's central bankers are in Jackson Hole, Wyoming to discuss managing the economies of countries. The annual Federal Reserve 2-day policy symposium, "Structural Shifts in the Global Economy," includes remarks from Fed Chair Jerome Powell, European Central Bank President Christine Lagarde and Ngozi Okonjo-Iweala, World Trade Organization Director General.

"All over the world people can't afford food and poverty is increasing," said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. "Developing countries already pay 7% of their revenue on the interest of their debts. When the Federal Reserve raises interest rates, it means debts increase for countries in crisis."

In April, the IMF forecast the weakest growth in decades. Central banks continue pursuing measures, such as raising interest rates, attempting to fight inflation.

“Central bankers must weigh the reality that more than 165 million people became poor since 2020," noted LeCompte. "If the debts of developing countries continue to go up, countries have less resources to address poverty. When the debts of developing countries increase, food and fuel prices increase across the United States and Europe."

Read the Jackson Hole Economic Policy Symposium agenda here.