A High Priority is Debt Relief, Says Treasury Secretary Yellen in Address

Washington DC – Debt relief for poor countries is a high priority for the US, shared Treasury Secretary Janet Yellen in virtual remarks at a Vatican meeting of global finance leaders and Catholic dignitaries. A G20 debt reduction process is in place for poor countries, but developing middle-income countries cannot access the process. During Yellen's address, she lifted US support for developing middle-income countries to qualify for debt relief.

“Yellen's participation in this Vatican event shows the synergy between the pandemic response priorities of Pope Francis and the US Treasury,” said Executive Director of the religious development group Jubilee USA Network. LeCompte advises the Vatican on economic issues and organized a meeting between high-level religious leaders and Yellen in March. "The Pontifical Academy of Social Sciences did an incredible job convening leaders to confront the current crisis."

“Dreaming of a Better Restart,” the conference that Yellen attended, focused on economic policies to combat inequality, climate change and food insecurity.

Yellen remarked on US support for creating $650 billion of emergency currency, known as Special Drawing Rights (SDRs). While developing countries will receive more that $200 billion of these new resources, more than $400 billion is received by wealthy countries. Yellen stated the US wants to donate their share of SDRs to poor countries.

“The support of the US to get as many new resources to developing countries is critical,” stated LeCompte. “More resources are needed to get vaccines to developing countries. Less than 2% of vaccines have reached poor countries.”

The US recently signaled support to waive pharmaceutical patents to increase access for COVID-19 vaccines and therapies.

On climate, Yellen repeated that the US will use its full power to tackle climate change. May 24th is the sixth anniversary of Pope Francis’ encyclical on climate change, ‘Laudato Si.’ 

"Yellen's powerful comments on climate change to this special Vatican conference come as we are celebrating the Holy Father's landmark teaching on protecting the environment," shared LeCompte.

Washington DC – On Monday, the International Monetary Fund approved a plan to pay for Sudan's debt owed to the financial institution. Using grants and internal resources, IMF leadership agreed to clear $1.3 billion in missed debt payments or arrears.

U.S. Catholic features the United States Conference of Catholic Bishops and Jubilee USA Network joint letter to the Biden Administration for global debt relief. Read an excerpt below, and click here for the full story.

It’s time to reform global lending, say U.S. Bishops

By Kevin Clarke

In a joint letter in February, the interfaith religious development group Jubilee USA Network and the United States Conference of Catholic Bishops urged the Biden administration to take the lead in preventing such lamentable trade-offs. Their appeal calls for a short-term response to address immediate humanitarian needs this year, freezing debt servicing, and forgiving some loans outright. But the letter writers also argue that long-term reform of global lending practices has to be a part of a rational response to prevent a rinse and repeat of such crises. Too often resource-rich-but-capital-poor states accept debt deals that promise prosperity but just as often deliver economic and social catastrophe.

Cornering poor counties into trading emergency spending on public health for debt payments will definitely mean a higher death toll and the likelihood that the pandemic will continue longer than it has to. In that sense a merciful response on debt is a wise investment for all, helping economies around the world return to normalcy faster and with fewer casualties. No one should be forced to choose between life and debt.

Read the full article here.

Rome Reports features Eric LeCompte on the Vatican's commitment to debt relief for developing nations. Read an excerpt below, and click here for the full story.

Religious groups shift attention to economic crisis following the Covid-19 pandemic

By Justin McLellan

The World Bank and the International Monetary Fund held a series of Spring meetings earlier this month to discuss the global economic recovery from the Covid-19 pandemic. 

Ahead of the virtual conference, Pope Francis addressed a letter to the meetings' participants, urging them to seek an equitable and sustainable recovery plan that recognizes the needs of developing nations, in particular the estimated 52 countries currently experiencing a debt crisis.

"This is an issue that the Catholic Church has been a leader on since 1997 when Pope John Paul II aligned the jubilee year of the Church with a campaign for debt relief," said Eric Lecompte, Executive Director of Jubilee USA Network.

For Pope Francis, debt relief is not only a financial question, but a matter of respecting human dignity. Relieving the burden of debt of so many countries and communities today, is a profoundly human gesture that can help people to develop, to have access to vaccines, health, education and jobs.

Read the full article here.

Read the full article in Spanish here.

Bloomberg quotes Eric LeCompte on China's unilateral large-scale lending to low-income countries. Read an excerpt below, and click here for the full story.

China and Its Lenders Have to Join the Global Club

By Michael Schuman

Perhaps more importantly, Beijing must become far more transparent about its lending. China has been notoriously secretive about its aid programs. A 2019 study by the National Bureau of Economic Research in Massachusetts found that half of all Chinese overseas loans to developing countries have been “hidden,” as in not properly reported. This is in part the fault of the borrowing governments. But Beijing often insists on this secrecy.  An analysis of Chinese loan contracts co-authored by Parks and released in March discovered that “the Chinese contracts contain unusual confidentiality clauses that bar borrowers from revealing the terms or even the existence of the debt.” This could easily muck up restructurings by making other creditors wary of cooperating due to a dearth of clarity on China’s loans.

Beijing ought to release its debtors from these stipulations when necessary to assist the restructuring process. Better still, the Chinese government should become more proactive in detailing the extent of its lending. The Organization for Economic Cooperation and Development manages a program for creditor countries to report their development assistance. China should participate.

Most of all, Beijing has to resist its urge to go its own way. Doubts remain that Beijing is fully committed to the G20 framework. Eric LeCompte, executive director of Jubilee USA Network, a coalition of organizations focused on anti-poverty issues, told me he believes “China’s preference is to be able to go it alone,” and cut its own deals.

Read the full article here.

Crux features Eric LeCompte on President Biden's support to waive intellectual property protections for COVID-19 vaccines. Read an excerpt below, and click here for the full story.

Catholics debate Biden’s waiver of property rights for vaccines

By John Lavenburg

In conversations with Crux, officials from Catholic Relief Services (CRS) and Jubilee USA Network touted waiving IP protections on the vaccines – copyrights, patents, trademarks and trade secrets –  as an essential step towards ending the pandemic.

“What we’re saying in this instance is that this is a disease that’s ravaging the entire globe,” said Emily Wei, director of policy for CRS. “We’re not going to eradicate it until everyone is vaccinated and you reach that herd immunity.”

CRS estimates that reaching herd immunity will take an estimated 11 billion doses to vaccinate 70 percent of the world’s population (assuming two doses are given per person).

Eric LeCompte, executive director of Jubilee USA NETWORK also acknowledged the point that these vaccines are essential for stopping mutations and variants “that could re-infect people in the north if the developing world doesn’t get access to vaccines.” But, he also noted there’s a great global economic impact to not helping these countries get back on their feet.

Read the full article here.

US Plays Major Role in Sudan Relief Effort

Washington DC – Under a debt relief plan won by advocates in the early 2000s, Sudan could see a drastic cut in its $50 billion debt this summer, according to the IMF and the World Bank. 

“Sudan’s debts would be cut by 85% under the debt relief plan,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network, which was a major force for the creation of the debt reduction process. “Debt relief cannot come soon enough for Sudan as the country struggles with the pandemic and a 50% poverty rate."

Thirty-seven, out of thirty-nine eligible countries, received debt relief under the Heavily Indebted Poor Countries Initiative or HIPC. In order for Sudan to receive a debt reduction it must meet IMF economic reforms and clear missed debt payments. The United States loaned $1.1 billion to Sudan to clear debt payment arrears to the World Bank and convened creditors to secure debt relief.

"The United States is an important leader in Sudan debt relief and is playing a crucial role in expanding debt relief policies during the pandemic," shared LeCompte, who worked with Republican and Democratic administrations for more than a decade on debt policies. "This relief for Sudan can support economic growth and stabilize a hard-won peace in a country where conflict raged for 17 years."

After Sudan obtains debt relief, Eritrea remains the lone country that could qualify under the HIPC debt relief plan won by Jubilee USA.

Washington DC - As developing countries struggle to access vaccines, the US announced support to eliminate trade barriers on vaccine access. In a statement Wednesday, the Biden Administration called for a waiver on COVID-19 vaccine intellectual property patents at the World Trade Organization.

“Less than 2% of vaccines reached poor countries,” said Eric LeCompte, the Executive Director of the religious development organization Jubilee USA Network. "Intellectual property rights prevent developing countries from making their own vaccines or accessing generic versions."

The IMF states that uneven vaccine access is a main cause of global economic uncertainty. 

"When the majority of countries are not accessing vaccines, the virus continues to mutate and could reinfect vaccinated people in wealthy countries," noted LeCompte. "Continuing coronavirus waves, in any part of the world, mean economic shocks from exports and imports for every country."

President Biden pledged $4 billion to a global fund to help poor countries acquire safe and effective vaccines.

United Nations ECOSOC Special Session on Small Island Developing States, Least Developed Countries and Landlocked Developing States: 
Financing a resilient recovery from the cascading effects of COVID-19 

23 April 2021

"The Promise of a Post Pandemic World Where We All Have Enough"

Washington DC – On April 22-23 President Biden hosted more than 40 world leaders for a virtual climate summit. Biden announced a new US target to halve fossil fuel emissions by 2030 and eliminate them by 2050, and pledged to double annual public climate finance for developing countries by 2024. He also unveiled an international climate finance strategy prepared by Treasury.

Eric LeCompte the Executive Director of religious development group Jubilee USA Network, releases the following statement on President Biden’s Leaders Summit on Climate:

“The summit encourages greater climate action at upcoming G7, G20 and UN meetings.

“Biden's summit is important because it included leaders from countries of all sizes and regions. We can only address climate change together and Biden is bringing a broad range of participants together. 

"The summit included business and labor groups, climate activists and the Pope.

“The guest list conveyed, better than any amount of words, the intention to listen to all and build broad-based support to tackle the climate crisis.

“Treasury vowed to align international financial policies with climate objectives.

“Treasury Secretary Yellen sees that developing countries can succeed on the climate agenda if we also focus on global pandemic response and development.

“For many countries the ability to invest on sustainable, resilient, low-emission infrastructure hinges upon decisive solutions to their dire debt situations."

Read Jubilee USA's release on White House and Treasury climate commitments at the Leaders Summit on Climate here.

Read President Biden's speech at the Leaders Summit on Climate here.

Read Secretary Yellen's speech at the Leaders Summit on Climate here. 

Washington DC – The United Nations convened on COVID response and development needs for vulnerable, small island and landlocked countries. The President of the Economic and Social Council, Pakistan Ambassador Munir Akram organized the high-level event to focus on countries struggling with specific disadvantages from the crisis.

“Small islands, poor countries and landlocked nations faced considerable risks and vulnerabilities before the pandemic struck,” said Eric LeCompte, Executive Director of Jubilee USA Network and one of the primary speakers at the session. “The COVID pandemic made the situation worse and too many countries are left out of global agreements to deal with the crisis."

The pandemic set back progress towards achieving the Sustainable Development Goals, targets the international community adopted in 2015, for the countries discussed during the special UN session today.

“These countries struggle to provide vaccines and lack aid to support jobs, address climate change and feed their people,” noted LeCompte.

High-level speakers at the session include Gaston Browne, Prime Minister of Antigua and Barbuda; Mia Mottley, Prime Minister of Barbados; José Ulisses de Pina Correia e Silva, Prime Minister of Cabo Verde; Eisenhower Nduwa Mkaka, M.P., Minister of Foreign Affairs of the Republic of Malawi; Aiyaz Sayed-Khaiyum, Attorney-General and the Minister for Economy, Public Enterprises, Civil Service, Communications and the Minister responsible for Climate Change of Fiji; Rabab Fatima, Permanent Representative of Bangladesh to the United  Nations  and  Co-Chair  of  the  Preparatory  Committee  for  the  Fifth  UN  Conference on LDCs; Baroness Patricia J. Scotland QC, Secretary-General, Commonwealth Secretariat; Lindsey Zuluaga, White House Director for International Economic Policy, National Security Council, USA; Jose Antonio Ocampo, Chairperson of the Committee for Development Policy of the Economic and Social Council; Mr. Umberto de Pretto, Secretary General of the International Road Transport Union; Eric LeCompte, Executive Director of Jubilee USA Network and Fekitamoeloa Utoikamanu, Under-Secretary General and Special Representative of the Office for Least Developed Countries, Landlocked Developing Countries and Small Island Developing States.

The UN session takes place from 10:00 to 1:00 PM and 3:00 PM to 5:00 PM New York Eastern Daylight Time.

Read the schedule and speakers here.

Washington DC – Financial decisions play a critical role in solving climate change, advocated Treasury Secretary Yellen during a US-hosted climate summit. More than 40 world leaders are attending the two-day virtual gathering convened by President Biden. Biden announced a new US target to halve fossil fuel emissions by 2030 and eliminate them by 2050. 

“The summit encourages world leaders to do more to protect our planet and environment,” noted Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “Secretary Yellen's powerful words remind us that climate change decisions are linked to financial decisions and global coronavirus response."

In a strategy unveiled on Tuesday, Treasury pledged to confront climate change, domestically and globally, in all decisions the financial institution considers. To ensure all agencies within Treasury focus on climate change, Yellen named John Morton as the department's first Climate Counselor to lead the Climate Hub, reporting directly to Yellen on climate matters.

“Treasury is playing a key leadership role at the IMF and G20 to confront climate change worldwide," stated LeCompte. 

This year the US co-chairs the G20 sustainable finance working group which will have a role in climate change issues.

In a speech on Wednesday to a group of private investors and creditors, the Institute of International Finance, Yellen asserted that developing countries are vulnerable to climate change. She underscored that infrastructure investments should be low-emission, resilient and sustainable.

“Treasury's encouragement for private sector investments to promote climate solutions is important,” shared LeCompte. "I worry that Yellen's words are falling on deaf ears. In spite of the urging of the US, IMF, G20, UN and World Bank, too much of the private sector refuses to participate in coronavirus debt relief. Segments of the private sector are forcing developing countries to choose between paying debt or supporting their people and addressing climate change."

In March, Jubilee USA Network and Treasury organized a roundtable with Yellen and high-ranking religious leaders. At the meeting, the Secretary shared her vision of Treasury's role in combating climate change. 

See the full agenda for President Biden's Leaders Summit on Climate here.

Read Secretary Yellen's speech at the Leaders Summit on Climate here. 

Read Secretary Yellen's speech to the Institute of International Finance here.

Read Treasury's readout of the Jubilee USA High-Level Roundtable with Secretary Yellen here.

Read about the Jubilee USA High-Level Roundtable with Secretary Yellen here.

Read President Biden's speech at the Leaders Summit on Climate here.