Global Finance Magazine quotes Eric LeCompte on the growing inequality since the start of the COVID-19 pandemic. Read an excerpt below and click here for the full story. 

IMF and World Bank Annual Meetings

Post-pandemic economics hobble infrastructure growth.

By Rob Daly

As finance ministers and central bankers from more than 190 countries gather in Marrakesh for the annual meetings of the International Monetary Fund (IMF) and the World Bank Group, what optimism they have is tempered by the flare-up of Middle East violence that threatens to spread and post-pandemic economic realities.

The global economic recovery since the pandemic's start remains uneven, as Kristalina Georgieva, managing director of the IMF, noted in her curtain-raising speech. “[T]he current pace of global growth remains quite weak, well below the 3.8% average of the two decades before the pandemic,” she said. “And looking ahead over the medium term, growth has weakened further.”

The World Bank estimates that the global economy has lost $3.7 trillion in global output, which has hit the lower-income emerging economies the hardest. Meanwhile, the US economy has returned to pre-pandemic growth rates.

Read more here. 

Eric LeCompte is quoted in Reuters on the attention shifts from IMF and World Bank discussions on economic policy due to conflict. Read an excerpt below and click here for the full story. 

World Bank urges cooling of Israel-Gaza conflict as annual meetings start

By Andrea Shalal and David Lawder

MARRAKECH, Morocco, Oct 9 (Reuters) - The World Bank on Monday urged a "rapid de-escalation" of the fighting in Israel and Gaza as the violence cast a pall over the start of the bank's annual meetings with the International Monetary Fund in Morocco.

An internal World Bank memo seen by Reuters cited a "devastating loss of life, destruction and heavy toll on civilians being incurred on both sides," but voiced support for the lender's work in Gaza and the West Bank.

"We hope for a rapid de-escalation of the conflict and end to the violence. The World Bank and our development partners have long worked to support the poorest, most vulnerable people in the West Bank and Gaza, and we remain committed to building the foundations for a more stable and sustainable future."

Read more here.

Eric LeCompte is quoted by Devex Invested on the Global Sovereign Debt Roundtable. Read an excerpt below and click here for the full story.

Devex Invested: What’s on the menu in Marrakech

Ajay Banga started his term as World Bank president this year by traveling the globe listening to countries’ needs. Now, with the bank’s evolution road map up for discussion at this week’s annual meetings of the bank and the International Monetary Fund in Marrakech, Morocco, it’s time to act.

A G20 report in July set out the challenge to more than triple the current pace of lending, but shareholders have different views on how to get there. Greater use of loan guarantees and hybrid capital are among the moves likely to be discussed at the meetings, with Reuters reporting that the U.S. Treasury is working on new rules on callable capital with an eye to reaching decisions in April 2024. We will be following the latest recommendations of the G20 independent expert group coming out on Friday.

The World Bank has a “new playbook,” which sees it becoming more open, creative, faster and easier to work with, while also offering countries a new set of financial “tools.” This was laid out by Anna Bjerde, the World Bank’s managing director of operations, at a panel event in Marrakech earlier today. The change is needed in the face of growing instability, shocks, and other “intertwined challenges,” to use one of Banga’s favorite phrases. In response, the bank must have a “whole different mindset,” Bjerde said.

Read more here.

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.

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. 

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.

"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, 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.

October 11, 2023 | 8:30 - 10:00 am ET (1:30 - 3:00 pm Marrakesh time)

Defusing the Debt Time Bomb: The Role of an Effective Crisis Prevention and Resolution Architecture

More than 60 countries struggle with high debt burdens and payments, but too few of them make use of the debt restructuring mechanisms available, whether through or outside the G20's Common Framework. Continued debt payments come at the expense of health, social, climate and other priorities - even cutting or delaying pensions and public sector wages. Unfortunately,  eventual restructurings are inevitable and are more costly for a countries people, their creditors and our planet.

What needs to change in the debt architecture to encourage and deliver early, prompt and sufficient debt reductions?

Jubilee USA Network's Executive Director, Eric LeCompte, moderates a panel with Matthew Martin, Director, Development Finance International; Lidy Nacpil, Coordinator, Asian Peoples' Movement on Debt and Development; Guillaume Chabert, Deputy Director, Strategy, Policy and Review Department, International Monetary Fund (IMF); Yuefen Li, Co-Chair, Debt Relief for a Green and Inclusive Recovery; Bodo Ellmers, Director of Financing for Sustainable Development Program, Global Policy Forum; Salwa Trabelsi, Professor, ESSECT, University of Tunis.

Sponsors: African Forum and Network on Debt and Development – AFRODAD, Arab NGO Network for Development, Arab Watch Regional Coalition, Asian Peoples’ Movement on Debt and Development, Caritas Africa, Debt Justice Norway, Debt Relief for a Green Recovery, Erlassjahr,  European Network on Debt and Development – Eurodad, Friedrich Ebert Stiftung-NY, Global Policy Forum, Jesuit Justice and Ecology Network Africa – JENA, Jubilee USA Network

Location: Room SCO3

Previous registration to the World Bank/IMF Annual Meetings will be required to access the premises. To attend virtually, register to get the access link at: https://forms.gle/UXS4ukwht3qaYRGs7

As World Leaders Head to Morocco, IMF Leader Raises Growth and Debt Challenges

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 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.

Ghana Business News highlights key proposals from Jubilee USA and partners' "The Role of FBIs and the Media in Securing an Inclusive Economic Recovery and Debt Relief" workshop in Accra, Ghana. Read an excerpt below, or the full article here.

Multi-Faith Network leaders call for transparency in IMF bailout funds utilisation 

A Coalition of Multi-Faith Network leaders, has called for equity, inclusion, transparency, and good governance on the utilisation of the International Monetary Fund (IMF) bailout funds for Ghana. 

The Coalition in a Communique read by Hajia Ayishetu Abdul-Kadiri, the Chairperson, Faith in Ghana Alliance, reiterated the importance of transparency, accountability and good governance in managing and utilising funds received through the IMF bailout.  

The Communique, which was issued in Accra, at the end of an advocacy workshop for Faith-Based Institutions (FBIs), News Editors and Reporters said the resources’ responsible and ethical use would foster trust and confidence in the government’s commitment to inclusive economic recovery. 

The workshop, organised by Caritas Ghana in collaboration with Caritas Africa and Jubilee USA Network was on the theme: “The Role of FBIs and the Media in Securing an Inclusive Economic Recovery and Debt Relief.” 

Read more here.

News24 quotes Eric LeCompte on the Sustainable Development Goals and how public debt effects their achievement. Read an excerpt below, or the full article here.

The UN can talk SDGs all it wants, without money it means little for Africa, experts warn

By Lenin Ndebele

The UN General Assembly (UNGA78), currently underway, is spending much of its time on topics such as democracy, environmental protection, and the 2030 Sustainable Development Goals (SDGs).

But without money, that was just empty talk, experts have warned.

"In 2015, the international community won a historic agreement on goals to lift countries out of poverty and protect our planet," said Eric LeCompte, the executive director of religious development group Jubilee USA.

Defined as "a shared blueprint for peace and prosperity for people and the planet, now and into the future", the SGDs are a set of 17 interconnected goals.

Read more here.

Presidents, prime ministers and world leaders are at the New York United Nations headquarters for the annual UN General Assembly meetings. Leaders during meetings are focused on global debt, aid, pandemic preparedness, environmental protections and the 2030 Sustainable Goals (SDGs).

“In 2015 the international community won a historic agreement on goals to lift countries out of poverty and protect our planet,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA. “We knew that the developing countries would need trillions of dollars to achieve development goals. Unfortunately the money that we need is nowhere in sight."

Ahead of the 2030 deadline to meet the SDGs, only 12% of the targets are on track, the UN reported earlier this year. 

"Debt relief remains on the United Nations agenda as a way to fund development and win the Sustainable Development Goals," noted LeCompte who serves on United Nations expert groups.

In December, the G20, the IMF and the World Bank initiated a Global Sovereign Debt Roundtable that brings together a limited number of stakeholders to bridge disagreements in implementing a debt restructuring process that the G20 created three years ago. Only four countries applied to the G20 process so far and Chad is the only country to reach conclusion of the process.

"G20 efforts are important because debt relief is a way to help countries get out of crisis,” stated LeCompte. "Beyond getting countries out of crisis, debt relief can be used to support countries achieve sustainable development."

The roundtable meets on the sidelines of the October IMF/World Bank Annual Meetings in Marrakesh. Its last meeting, earlier in September, focused on domestic debt restructuring issues.