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The Brazilian Presidency of the G20 hosts finance ministers for their first G20 meeting this year. Brazil’s vow to make the reduction of poverty and hunger priorities this year takes place amidst the world’s worst growth projections in the last three decades, spreading armed conflicts and rising debt payments.
“Debt payments in developing countries are equal to what many of these countries spend on health, education, social programs and climate issues combined” said Eric LeCompte, Executive Director of Jubilee USA Network. “Giving developing countries effective tools to cut their debt is essential for progress on any of the priorities the G20 sets for this year.”
The World Bank forecasts that debt payments will rise 10% in 2023-2024 compared to the previous two years. A G20 debt reduction initiative began in 2020, the Common Framework, has only attracted four applicants, three of which remain stuck without an exit to their debt crises.
Brazil continues the G20 efforts to increase the capacity and to reform development banks.
“The G20 needs to track how development banks meet new challenges and growing demands,” noted LeCompte.
Brazil also announced plans to advance the group’s cooperation on halting climate change and aligning financial actions with the objectives of the Paris Climate Agreement.
“The G20 can build consensus on meeting the climate funding goals that the UN climate conference needs to finalize by the end of this year," shared LeCompte.
This year’s UN climate conference, COP29, is the deadline for agreeing on a new climate finance goal starting in 2025. G20 leaders agreed last year that $100 billion a year is the floor for any new climate finance commitments.
“We worry that too many of the increased climate resources may come in the form of loans that add to high debt burdens.”
In last year's October G20 gathering the group avoided commenting on the conflict in Israel and Gaza.
"There are strong tensions among G20 leaders around the conflicts and humanitarian crises taking place in Ukraine and Gaza and Israel."
Reuters and Yahoo News quote Eric LeCompte on the Global Sovereign Debt Roundtable. Read an excerpt below, or the full article here.
By Andrea Shalal
The IMF forecast 3.1% global growth in 2024, a fifth of a point increase on its October projection. According to the IMF, the new forecast is still below the 3.8% growth average during the two pre-pandemic decades. The report noted risks to trade routes as a result of war and that the Israel and Gaza conflict spreads and sends food and fuel costs to new highs.
“Most countries are facing economic challenges while their debt payments are too high,” said Eric LeCompte, Executive Director of the religious development organization Jubilee USA Network. "When countries need resources and interest rates on loans are high, we have a recipe for more crises."
Developing countries spend 13% of their budgets repaying debt, more than double the figure 15 years ago, and debt problems prevent necessary investments, according to the IMF. High rates moved by major central banks, in attempts to contain inflation, fuel a higher cost of borrowing for these countries.
“While developing countries are still dealing with challenges from the pandemic, slow growth and high debts are bad news,” added LeCompte. “Developing countries need debt relief and more resources to confront continuing economic shocks."
Earlier this month, the World Bank found that 40% of the low-income countries are poorer than before the pandemic. Developing country debt payments were at the highest level ever in 2022 and expected to continue to grow.
Read the IMF's World Economic Outlook Update here.
U.S. News & World Report quotes Eric LeCompte on the economic challenges faced by developing countries due to the pandemic and high debt. Read an excerpt below, or the full article here.
By Tim Smart
Eric LeCompte, executive director of the religious development organization Jubilee USA Network, also noted that many countries still face the twin concerns of dealing with the aftermath of the pandemic and crushing debt burdens.
“Most countries are facing economic challenges while their debt payments are too high,” he said "When countries need resources and interest rates on loans are high, we have a recipe for more crises."
LeCompte also stated that developing countries spend 13% of their budgets repaying debt, more than double the figure 15 years ago.
“While developing countries are still dealing with challenges from the pandemic, slow growth and high debts are bad news,” LeCompte added. “Developing countries need debt relief and more resources to confront continuing economic shocks."
Read more here.
America Magazine quotes Eric LeCompte on the current global economic system's inability to eradicate poverty. Read an excerpt below, or the full article here.
By Kevin Clarke
Eric LeCompte is the executive director of Jubilee USA Network, a coalition of religious, development and advocacy groups focused on debt relief for the world’s poorest economies. He believes “from a Catholic point of view,” there is good reason to look askance at some of the “false promises” coming out of Davos, including “the idea that artificial intelligence, better technology and the economic system as it is can deal with global poverty, deal with inequality, create the jobs we need as well as protecting our planet.”
“These are messages that the church has been skeptical about,” he says, “knowing that throughout human history, unless we have an ethical economy, no matter what technology we have or what new systems or new businesses we have, we’re not going to create the world that is…promised, where we all have enough.”
Davos is an experience, Mr. LeCompte says, where important ideas are discussed, business relationships secured and deals made, but in the end not much is practically achieved in terms of addressing global poverty and inequity. Its relevance has been even more diminished, he believes, since the arrival of tech giants on the Davos scene, who use the conference to showcase their digital wares and vision. To many it is merely “the best party in Europe.”
Read more here.
Friend,
Our 2023 Jubilee report is out. Through pictures and words our year-end report details our work over the last year from New York to Africa to Puerto Rico.
Please read and share our 2023 end-of-year report that details how our Jubilee efforts are saving lives and livelihoods and protecting our planet.
We won billions in aid this year for developing countries. Our Executive Director Eric LeCompte addressed 46 presidents and primeministers of these countries on how to move their populations from poverty to prosperity.
We changed global policies on debt and development. We appeared in tens of thousands of news outlets.
Read and share our Jubilee USA Network 2023 end-of-year report.
We look forward to continuing our productive efforts, together, in the new year.
Gratefully,
Aldo Caliari
Senior Director of Policy and Campaigns
Jubilee USA Network
[email protected]
www.jubileeusa.org/support-us
Nearly 200 countries agreed to cut the use of all fossil fuels during COP28, the UN climate change conference that concluded in Dubai. According to the UN, the world is facing catastrophic temperature changes unless countries take more dramatic action to reduce their reliance on fossil fuels.
“While we saw important commitments in Dubai, we are not taking action quickly enough to address climate change," said Eric LeCompte who serves on United Nations expert groups and is the Executive Director of the religious development organization Jubilee USA Network. "Developing countries urgently need more resources as they wrestle with some of the worst impacts of climate change."
Developing countries need to spend $2.4 trillion on climate challenges and another $3 trillion on other development priorities, noted a group of experts commissioned by previous COP presidents.
"The Dubai agreement noted that countries need more aid, relief and cheap loans to avoid increasing debt," stated LeCompte.
In 2023, spending on debt service will be 12.5 times higher than spending on climate adaptation, according to a brief Jubilee USA Network and other organizations launched in November.
Africa's Catholic Bishops said that while Africa is historically not responsible for global warming, the region suffers the highest vulnerability to it. The statement by the Justice, Peace and Development Commission of the Catholic Symposium of Episcopal Conferences of Africa and Madagascar (SECAM) called for removing the obstacle of debt and scaling up aid to the region in the lead up to the new Jubilee 2025 year. In Pope Francis' address to COP28, delivered by Vatican Secretary of State Cardinal Parolin, Francis called for solutions that do not penalize “the development of many countries, already burdened by grave economic debt,” and called for “remitting” such debts.During the conference the World Bank announced its loans to vulnerable countries will include clauses that pause debt payments temporarily when the debtor suffers a climate-related disaster.
“Debt payment pause clauses in loan contracts are essential to more fairly share climate change burdens and impacts of disaster between creditors and debtors,” added LeCompte. “We need these types of clauses in all loan contracts.”
The conference launched a fund to compensate countries for climate-related losses, attracting initial donor pledges totaling $800 million.
“Droughts, storms, floods, poorer harvests and rising health problems are among the many climate effects hurting developing countries,” expressed LeCompte. “While we have critical commitments to raise resources to combat climate change, we will need more."
Dear Friend,
Today, #GivingTuesday, falls during multiple global crises that can often feel like too much to comprehend. Because of you, Jubilee USA won hundreds of billions of aid to confront the pandemic and debt, food, disaster and climate crises. World leaders are considering our proposals to prevent future crises. These solutions are needed to help every day households in the US, Puerto Rico and the entire world.
Please donate to Jubilee USA Network to support our mission and efforts to address global crises and the structures that create poverty, inequality and harm to our planet. Your tax-deductible gift is matched and doubled now.
Over the past year, your generosity meant:
Please join me and make a tax-deductible gift this #GivingTuesday, so Jubilee USA can continue to create and advocate for solutions that save lives, our planet, and prevent future crisis. Donations are doubled now.
In solidarity,
Eric LeCompte
Executive Director
Twitter: @Eric_LeCompte
www.jubileeusa.org/support-us
Friend,
Aldo Caliari
Senor Director of Policy and Campaigns
Jubilee USA Network
https://jubileeusa.nationbuilder.com/support-us
US bishops endorse Puerto Rico’s appeal for equal food assistance Crux (November 14th)
Will World Bank, IMF rescue developing economies from growing debt conundrum? News Agency of Nigeria (October 25th)
The New York Legislature Could Help Free the Global South from Crushing Debt Jacobin (October 14th)
Change approach to Africa, Catholic bishops urge IMF, World Bank The Herald (October 13th)
G20 communique omits mention of Middle East conflict Reuters, the New York Times, US News (October 13th)
World's Higher-for-Longer Rate Era Stokes Worry Bloomberg (October 13th)
You have to change your approach to Africa, Catholic bishops urge IMF, World Bank news24 (October 12th)
What’s on the menu in Marrakech Devex (October 12th)
World Bank urges cooling of Israel-Gaza conflict as annual meetings start Reuters (October 9th)
IMF and World Bank Annual Meetings Global Finance (October 9th)
Multi-Faith Network leaders call for transparency in IMF bailout funds utilisation Ghana Business News (September 29th)
The UN can talk SDGs all it wants, without money it means little for Africa, experts warn news24 (September 21st)
Africa in the G20: The good, the bad, and the changing climate news24 (September 12th)
Bishops join African faith leaders in call for debt relief The Tablet (August 28th)
Catholic bishops, faith leaders appeal for debt relief to help African countries National Catholic Reporter (August 24th)
African Faith Leaders Recommended "large investments" to Address Continent's Economic Crisis Association for Catholic Information in Africa (August 9th)
African Faith Leaders discuss strategies to navigate contemporary crises Vatican News (August 8th)
Godongwana may need to revise South Africa’s 2023 growth forecast IOL (July 19th)
Devex Invested: Setbacks for an ambitious plan to ease global debt woes Devex (June 13th)
Ambitious N.Y. bill takes aim at global debt woes Axios (June 12th)
How New York State Could Unlock Billions for Climate Finance The New Republic (June 9th)
Wall Street Scores Victory as NY Lawmakers Stall Vote on EM Debt Bills Bloomberg (June 8th)
New York bill would rewrite rules for sovereign debt restructurings Nikkei Asia (June 7th)
Investors brace for new law on sovereign debt workouts Financial Times (June 5th)
New York Bills That Cap Key EM Debt Payouts Rile Pimco, Fidelity Bloomberg (May 18th)
Jubilee USA Pushes NY To Enact International Debt Relief Law The Sanctuary of Independent Media (May 5th)
How the World Bank, IMF, and G20 Are Tackling Inequality, Climate Rising Up With Sonali (April 1st)
Challenged by Poor Access to External Financing, Aid, Least Developed Countries Must Mobilize Domestic Resources, Promote Investment, Speakers Stress at Doha Roundtable United Nations (March 8th)
US names pick for World Bank Arkansas Online (February 24th)
US Nominates Ajay Banga as World Bank Chief Globe Echo (February 23th)
US nominates Ajay Banga for World Bank president Associated Press, Washington Post, ABC (February 23th)
New York state bill seen aiding poor country debt relief Reuters, New York Times, Yahoo (February 17th)
China, U.S. to participate in first meeting of new debt roundtable on Feb. 17 Reuters (February 13th)
Yellen: World Bank Should Incorporate Climate, Pandemic in Fight to End Poverty West Orlando News (February 11th)
No real solutions coming from World Economic Forum in Davos National Catholic Reporter (January 23th)
Friend,
Eric LeCompte
Executive Director
[email protected]
Twitter: @Eric_LeCompte
www.jubileeusa.org/support-us