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