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.

Puerto Rico and US Religious Leaders Urge Biden on Jobs, Disaster Aid and SSI

By Zachary Conti

Administration Legal Move Could Release $2.3 Billion for Vulnerable Puerto Ricans Say Faith Leaders

In a letter sent to President Biden, 20 major Puerto Rico and US religious leaders urged actions on disaster relief, job creation, and a legal move to aid people on the heavily indebted island.

"Please immediately instruct the Department of Justice to withdraw the suit, filed by the previous administration, that blocks $2.3 billion in annual Supplemental Security Income (SSI) payments. About 300,000 poor and vulnerable US citizens with disabilities are critically impacted," wrote the religious leaders representing major religious institutions from Puerto Rico and the United States. "We look forward to working with you so Puerto Rico can emerge with renewed resilience from our debt and child poverty crises, challenges with ongoing natural disasters, and the impacts of the pandemic."

The letter also requests that Biden implement measures to return manufacturing pharmaceutical jobs to Puerto Rico to help in the fight against COVID. Actions to reduce the island's 60% child poverty rate were noted in the letter from the religious leaders.

“Debt and disasters mired Puerto Rico in multiple crises, and then COVID-19 hit,” stated Eric LeCompte the director of Jubilee USA, the organization that coordinated the letter with Puerto Rico and US religious leaders. "The White House and Congress can move forward critical actions to address the crises facing Puerto Rico."

The heads of US and Puerto Rico churches signed the letter representing Catholic, Methodist, Lutheran, United Church of Christ, Christian (Disciples) and Evangelical churches. The 20 signers include leaders of the National and Puerto Rico Council of Churches, Catholic Charities, the General Bible Society and Jubilee USA Network.

Since 2015, religious leaders pressed Republican and Democratic White Houses and Congressional leaders to address the island's debt, child poverty and jobs crises. In 2017 after hurricanes Irma and Maria decimated the island, US and Puerto Rico religious leaders included disaster relief in their advocacy efforts.

Read the Puerto Rico letter to President Biden and the 20 Puerto Rico and US religious leaders signers in English and Spanish here. 

Leer carta en espanol aqui. 

Puerto Rico Struggles to Rebuild from Hurricanes Say Religious Leaders

By Kate Zeller

Hurricane Maria pummeled Puerto Rico last September 20th. According to the Associated Press, nearly 60,000 thousand people still reside in homes with blue-tarp-covered or inadequate roofs that could not survive a Category 1 hurricane. Tens of thousands of people across the island still lack access to housing or reliable electricity. After the hurricanes more than 130,000 people migrated to US States away from the island.      

"The hurricane anniversaries urge us to renew our commitment to assist the poorest among our people to rebuild their lives with dignity," noted San Juan's Catholic Archbishop Roberto González. "We all belong to one human family and need to care for one another."

Before Hurricane Maria, Puerto Rico saw a loss of emergency response and medical personnel due to austerity cuts imposed on the island wrestling with a $72 billion debt crisis. As hurricane recovery continues, Puerto Rico lumbers through a bankruptcy process designed by Congress.

"Our people feel in a state of uncertainty a year after Hurricane Maria and we are suffering from austerity measures from the debt crisis," stated Reverend Heriberto Martinez, the General Secretary of Puerto Rico's Bible Society and leader of a coalition to relieve the island's debt. "The impact of the hurricanes is that our people are leaving the island looking for employment and opportunities to improve the quality of life of their families." ‎

Rebuilding and recovery estimates for Puerto Rico range between $95 billion and $140 billion. The Governor and the island's congressionally mandated fiscal oversight board are requesting a rebuilding package of $125 billion. Over the last year, Congress and the federal government approved about $35 billion of aid for the island.

"Congress and the White House need to come through with the remaining aid so Puerto Rico can rebuild to withstand the next hurricane," shared Eric LeCompte, Executive Director of the religious development group Jubilee USA. LeCompte testified to Congress and Puerto Rico's oversight board on Puerto Rico's financial crisis. "If a minor hurricane hit the island today, we'd see great suffering that could have been prevented. The clock is ticking." ‎

Economic Impacts on Poor are Central Themes of Francis Five-Year Papacy

By Lydia Andrews

This week marks the five-year anniversary of the election of Pope Francis as the leader of the Roman Catholic Church.

Eric LeCompte is the Executive Director of the religious development group Jubilee USA and he advises the Vatican and Catholic Church on economic and development issues. LeCompte releases the following statement celebrating five years of Pope Francis:

"As we celebrate the five-year anniversary of the election of Pope Francis, we celebrate how powerfully he expresses the plight of the poor.

"The Catholic Church has always called for our global economy to serve and protect the poor. As Pope, Francis has also spoken about how particular aspects of the financial system need to change to protect the poor. Francis endorsed a global bankruptcy process to stop financial crisis and prevent predatory hedge funds from taking advantage of poor countries. He raises concern about the impacts of tax havens, tax evasion, trade policies and corruption on vulnerable communities.

"Pope Francis speaks so specifically on the impacts of economic issues because he and his people in Argentina really felt the impacts. He led his people, when he was head of the Argentina Church, as the country wrestled with austerity policies and a debt crisis fueled by corruption and predatory hedge funds taking advantage of that crisis."

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

Archbishop and Religious Groups Hold Puerto Rico Prayer Vigil at US Capitol

By Lydia Andrews

As Congress considers recovery and relief packages for hurricane-hit Puerto Rico, the island's Archbishop and national religious groups are holding a vigil in a Congressional office building on Wednesday.

"Puerto Rico needs a Congress that is sensitive to the pain of the people of Puerto Rico," noted the Most Reverend Roberto Octavio González Nieves, O.F.M. Archbishop of San Juan de Puerto Rico. Gonzalez will be the primary presider at the service. "It needs a Congress that respects Puerto Rico's right to reconstruct with dignity."

San Juan's Archbishop will be joined at the prayer vigil by a number of major religious groups including: the United States Conference of Catholic Bishops, the United Church of Christ, the National Association of Evangelicals, the Muslim Public Affairs Council, Catholic Charities USA, the Franciscan Action Network, Catholic Charities of the Archdiocese of New York and Jubilee USA Network.

The various groups will be praying and calling for adequate rebuilding aid, debt relief and financing for healthcare and child benefits on par with what US States receive.

"Puerto Rico desperately needs adequate rebuilding aid so its power grid and infrastucture is strong enough to withstand the next storm," noted Eric LeCompte of the religious development group that is organizing the event, Jubilee USA Network. "Puerto Rico needs debt relief and equal access to Medicare, Medicaid and child tax benefit funding."

The event will be held at noon on December 20th from noon-1 pm in room 121 of Congress' Cannon House Office Building.

Invite: Payday, Puerto Rico and Student Loans

Dear Friends,

In recent months, together we won solutions for greater transparency in the global financial system. We moved forward solutions to Puerto Rico's financial crisis. 

Now I'd like to invite you to join us again as we work on payday lending, Puerto Rico's crisis and student debt.  You can join hundreds of communities across the US and participate October 14-16 in Jubilee Weekend 2016.

Please sign up if you can organize an event or if your religious community can offer one prayer for our neighbors impacted by predatory lending and debt crises. When you sign up, we'll send you materials that you can use to host an event at your house or sample prayers to be offered at your worship service.

Our theme this year is "Love Your Neighbor," as we pray and act for solutions to debt crises impacting communities across the United States and Puerto Rico. We'll focus on predatory "payday" lending, student debt and the ongoing debt crisis in Puerto Rico.

Payday loans are targeted at low-income communities where residents have little access to credit and struggle to make ends meet. The average payday loan carries an annual interest rate of nearly 400% - many borrowers take out as many as 10 payday loans to pay off the initial loan, creating a descending spiral of debt. This same type of debt spiral threatens Puerto Rico and its people as the Zika virus spreads and more Puerto Ricans leave the island. Meanwhile, student debt in the US has passed $1.3 trillion and a number of student lenders are under scrutiny for predatory lending and debt collection practices.

Sign up and join us October 14-16 to "Love Your Neighbor." Organize an event or offer one prayer for solutions to financial crisis that protect the vulnerable. We'll help you with actions, sermons, prayers and any other creative idea you have for a successful Jubilee remembrance.‎

Gratefully,

Eric LeCompte
Executive Director
www.jubileeusa.org/support-us

 

Puerto Rico Archbishop Calls for Negotiated Settlement to Island Debt Crisis

by Greg Williams

San Juan's Archbishop, Roberto González Nieves, called on Puerto Rico's government and debt holders to negotiate a "comprehensive" solution to the island's debt crisis in a United Nations speech this past Tuesday. The Archbishop asked any so-called "vulture" funds who hold the US territory's debt, to "stop lobbying Congress" and "...join other creditors of goodwill...to help broker a solution" to Puerto Rico's fiscal crisis. The Governor calls the debt "unpayable," as Puerto Rico faces another billion dollar payment on the first of January.

"I don’t come to this table as an expert or even as a creditor, I come to this conversation out of deep concern for my people who are suffering," stated the Archbishop in his speech. The Archdiocese is among many of the territory's religious institutions that also owns Puerto Rico's bonds. "‎The debt is unpayable and no matter what the government of Puerto Rico or certain creditors might say there is a very real humanitarian crisis."

The speech came at an event organized by the UN Conference of Trade and Development on the impact of so-called "vulture funds," firms that buy a government's debt cheaply and then demand full repayment.

Pope Francis' Jubilee Year Begins

By Greg Williams

Pope Francis began the Catholic Church's "Jubilee Year of Mercy" at St. Peter's Square with a public mass and ceremony attended by 50,000 people. Pope Francis opened a "Holy Door" at St. Peter's Basilica to officially launch the year-long celebration with its themes of mercy and solidarity for the poor.

"Pope Francis and other religious leaders will use the idea of the Jubilee Year to focus on the trade, tax and debt policies that cause inequality around the globe," said Eric LeCompte, executive director of the religious development group Jubilee USA, which was founded as part of the Catholic Church's last celebration of the Jubilee Year in 2000. "This is an exciting moment to win policies to end poverty."

The Jubilee Year is described in Jewish and Christian scriptures as a way to address inequality. In 1997, Pope John Paul II called for the Catholic Church's 2000th Anniversary or Jubilee Year to be specifically linked to international efforts to reduce debt for low-income countries. That effort, joined by religious leaders from most faiths, led to more than $110 billion in debt relief for 38 countries from the International Monetary Fund, World Bank and G8 countries.

NPR, BBC, 150 Faith Communities Proclaim IMF Jubilee

In DC, we are engaging the International Monetary Fund (IMF). Across the country, nearly 150 synagogues, churches and mosques prayed and acted during Jubilee Weekend (October 10-12) to address inequality and the causes of extreme poverty. In the lead up to these Jubilee Weekend events, National Public Radio's Interfaith Voices aired a 15-minute interview about Jubilee's work on 75 stations. Listen as our executive director Eric LeCompte shares about our work on predatory hedge funds, the IMF, debt, tax, and trade. 

Across the United States, Jubilee communities acted on an Ebola epidemic worsened by poor global debt and tax policies. In Washington, the International Business Times, the BBC, El Espectador, Agence France-Presse and the investor publication Value Walk covered our work at the IMF.

We've continued to be a part of the global conversation on stopping predatory financial behavior and preventing financial crisis. At the IMF and World Bank meetings, we organized 4 events and high-level conversations to end extreme poverty and address inequality.