Washington DC – Presidents, prime ministers and world leaders focused on solutions for the global economic crisis spurred by the coronavirus at a virtual United Nations meeting. "Financing the 2030 Agenda for Sustainable Development in the Era of COVID-19 and Beyond," is the largest heads of state meeting organized to confront the financial crisis created by the pandemic. 

"Six months into the pandemic and hundreds of millions of people are experiencing hunger, losing their jobs and being thrown into the ranks of poverty," said Eric LeCompte, Executive Director of the religious development group Jubilee USA. LeCompte was part of the multi-month process that developed the options considered by world leaders at the special UN meeting. "Poor and vulnerable people bear the brunt of this economic crisis."

The UN estimates 265 million people now face famine and 100 million people will enter extreme poverty due to the pandemic. Since the beginning of the coronavirus crisis, 500 million jobs were lost according to the International Labor Organization.

Developing countries spent less than 3% of the $11 trillion spent on COVID stimulus packages and economic aid. Nearly 90% of these stimulus monies were spent in wealthy countries.

"World leaders are considering options to bolster crisis response aid for developing countries," stated LeCompte. "Debt relief, curbing tax evasion and accessing global reserve funds are some of the options on the table."

The heads of state meeting was convened by United Nations Secretary-General António Guterres, the Prime Minister of Canada, Justin Trudeau and Andrew Holmes, the Prime Minister of Jamaica.

In October the G20, IMF and World Bank could implement some of the solutions discussed at the UN meeting.

Friends,

We are writing to share exciting news. After our win last week on Puerto Rico disaster aid, the House just included pandemic-related food aid for schoolchildren in Puerto Rico as part of the continuing resolution extending government funding.

Your calls and the leadership of Puerto Rico's religious leaders are moving forward all of our Jubilee USA Puerto Rico campaigns.

While we believe our efforts secured bipartisan agreement and this measure will pass the Senate next week, please make an urgent call to help address the reality that nearly 60% of all kids in Puerto Rico live in poverty.

Call your Senators and tell them to ensure that they join the House in supporting this funding vital for the most vulnerable in Puerto Rico.

On August 1st, Puerto Rico Nutrition Assistance Program (NAP) benefits that impact more than 1.5 million were reduced because funding ran out. 

The funding means that 300,000 children will have food.

Ask your Senators to support crucial food aid for the most vulnerable children as Puerto Rico recovers from hurricanes and wrestles with a debt crisis.

Below you can read more about our Puerto Rico campaigns, our disaster aid victory last week and the President's endorsement of the island's religious leader call for job creation.

We are so grateful for your partnership and that together - Jubilee USA continues to win our campaigns from Congress to the G20 to the IMF.

In hope,

Zach

Zachary Conti
Director of Policy and Advocacy
Twitter: @JubileeUSA
www.jubileeusa.org/support-us

---------- Forwarded message ----------
From: Aldo Caliari, Jubilee USA Network <[email protected]>
Date: Sun, Sept 20, 2020 at 8:30 AM
Subject: Puerto Rico Win! Hurricane Maria Anniversary Actions

Friends,

As we near the three-year anniversary of Hurricanes Maria and Irma slamming Puerto Rico, we remember the 3000 lives lost and more than $100 billion in damages across the island.

The White House announced on Friday that FEMA will award $13 billion in Puerto Rico disaster aid to rebuild the power grid and schools. The President also said he supported the call of Puerto Rico's religious leaders and Jubilee USA to bring pharmaceutical jobs back to the island.

You made this possible because of the tens of thousands of e-mails, phone calls and letters you sent to the White House and Congress since the hurricanes hit. Now - three years after the hurricanes hit, Puerto Rico is still trying to recover and wrestles with a debt crisis. Please join me and call your Senators to approve the remaining relief that Puerto Rico needs.

Since 2015, Puerto Rico's religious leaders and Jubilee USA pressed Congress and the White House on debt relief. When Hurricanes Maria and Irma decimated Puerto Rico in 2017, disaster recovery efforts became intertwined with debt relief.

Because of our work together with Puerto Rico's religious leaders, we've won $44 billion in relief aid. With Friday's White House announcement, $26 billion of those $44 billion are now moving forward.

Call the Senate now. We need to move forward the rest of the relief we won and move forward an estimated $50 to $80 billion in disaster assistance. The Senate is considering proposals to reduce Puerto Rico's child poverty rate and job creation.

The US Territory dealt with a series of earthquakes earlier this year and continues to wrestle with the coronavirus pandemic.

Puerto Rico needs Senate action to rebuild from hurricanes, multiple natural disasters, a debt crisis and rising joblessness and poverty. In order to fully recover, Puerto Rico will need more disaster aid and debt relief.

Last July, 11 religious leaders representing more than 95% of Puerto Rico’s population wrote Congress on the growing challenges facing the island. The letter asked for additional disaster recovery monies, measures to bring back pharmaceutical manufacturing jobs to Puerto Rico and the authorization of $1.2 billion for Nutrition Assistance Program benefits that impact 1.5 million people on the island. The letter was signed by leaders of the Catholic, Methodist, Lutheran, Christian (Disciples) and Evangelical Churches. The Puerto Rico Council of Churches, Catholic Charities (Caritas) and the General Bible Society also added their names to the letter to Congress.

Puerto Rico's debt crisis and natural disaster vulnerabilities are flip sides of the same coin. Debt crisis solutions must ensure Puerto Rico is prepared to respond, withstand and recover from natural disasters and external shocks.

Your actions continue to make a big difference and as the Senate considers a range of Puerto Rico proposals, your action is needed now.

Up to this day, thousands of family homes remain damaged or destroyed, with residents living under blue tarp roofs. Please call your Senators and urge them to act.

Gratefully,

Aldo

Aldo Caliari
Senior Director of Policy and Campaigns
Jubilee USA Network
[email protected]
www.jubileeusa.org/support-us

Washington DC - The G7 supports a process for debt cancellation for vulnerable countries, they announced this morning after Treasury convened a special Finance Ministers meeting. In a G7 statement, the ministers also encouraged an extension of the G20 Debt Service Suspension Initiative (DSSI) into next year for the world’s 73 poorest countries.

"The G7 recognizes that some countries will need debt cancellation and now is calling for a process to cut debts," stated Eric LeCompte, the Executive Director of Jubilee USA Network and a United Nations finance expert. "With the poorest countries struggling with the economic and health impacts of the coronavirus, countries desperately need more aid and debt relief."

In April, the G20 agreed to a process for the 73 poorest countries to stop paying debts through 2020. So far, the initiative has allowed 43 of the poorest countries to free $5.3 billion for health and social spending to respond to the pandemic.

The G7 statement encouraged private creditors and banks to "voluntarily" participate in the debt payment suspension and seemed to criticize China for not fully participating in the initiative.

"Reading between the lines, the G7's statement is hard on China and weak on private creditor participation," said LeCompte. "All Chinese government entities should stop taking debt payments from poor countries and stronger action must be taken to ensure the private sector joins the coronavirus debt relief initiatives."

Earlier this month, several Finance Ministers joined the World Bank and IMF chiefs in calling to extend the DSSI into 2021 and arguing that private creditors should stop collecting poor country debts.

"It's time to extend debt relief initiatives to all developing countries, including Middle-Income Countries, struggling with the coronavirus pandemic," shared LeCompte. 

In October and November, G20, IMF and World Bank meetings will discuss the future of coronavirus debt suspension and relief efforts.

Read the G7 Statement here.

Reuters, the Financial Post, and other outlets quoted Eric LeCompte as G7 finance ministers backed an extension of a G20 temporary freeze in debt payments. Read more here.

G7 ministers back extension of debt freeze for poorest nations, urge reforms

by: Andrea Shalal, Tetsushi Kajimoto, Leigh Thomas

“Pressure is mounting on China,” said Eric LeCompte, a United Nations finance expert. “They’re being very specific here. All Chinese government entities should stop taking debt payments from poor countries.”

The ministers called again on private lenders to participate when requested, noting that their absence from the process has limited the potential benefits for several countries.

The G7 finance ministers’ backing for an extension will smooth the way for a decision by the larger G20, with a formal decision likely at their leaders’ summit in November.

Read more here.

Washington DC – A high-level United Nations panel report says global policies are needed to prevent trillions of dollars escaping developing countries through tax abuse and corruption. The UN group includes former heads of state, past central bank governors, business leaders and prominent academics.

"As countries combat the health and economic impacts of the coronavirus, they could use the lost revenues from tax avoidance, crime and corruption," stated Eric LeCompte, United Nations finance expert and Executive Director of the religious development group Jubilee USA Network. "Countries can emerge from the pandemic with resilience and fund public services if we can curb these staggering revenue losses."

The United Nations High-Level Panel on International Financial Accountability, Transparency and Integrity for Achieving the 2030 Agenda (FACTI Panel), reported that around $1.6 trillion is laundered per year. Due to corporate tax avoidance in the form of profit-shifting, $500 billion is lost to governments each year globally. The UN panel report comes only days after the International Consortium of Investigative Journalists released the “FinCEN files," revealing that global banks moved more than $2 trillion over an 18-year period in suspicious transactions due to a lack of enforcement.

"Hopefully the report is a wake-up call," said LeCompte. "We must move forward global agreements and policies that increase transparency in the financial system."

The FACTI panel will release a final report in February 2021. 

Friends,

As we near the three-year anniversary of Hurricanes Maria and Irma slamming Puerto Rico, we remember the 3000 lives lost and more than $100 billion in damages across the island.

The White House announced on Friday that FEMA will award $13 billion in Puerto Rico disaster aid to rebuild the power grid and schools. The President also said he supported the call of Puerto Rico's religious leaders and Jubilee USA to bring pharmaceutical jobs back to the island.

You made this possible because of the tens of thousands of e-mails, phone calls and letters you sent to the White House and Congress since the hurricanes hit. Now - three years after the hurricanes hit, Puerto Rico is still trying to recover and wrestles with a debt crisis. Please join me and call your Senators to approve the remaining relief that Puerto Rico needs.

Since 2015, Puerto Rico's religious leaders and Jubilee USA pressed Congress and the White House on debt relief. When Hurricanes Maria and Irma decimated Puerto Rico in 2017, disaster recovery efforts became intertwined with debt relief.

Because of our work together with Puerto Rico's religious leaders, we've won $44 billion in relief aid. With Friday's White House announcement, $26 billion of those $44 billion are now moving forward.

Call the Senate now. We need to move forward the rest of the relief we won and move forward an estimated $50 to $80 billion in disaster assistance. The Senate is considering proposals to reduce Puerto Rico's child poverty rate and job creation.

The US Territory dealt with a series of earthquakes earlier this year and continues to wrestle with the coronavirus pandemic.

Puerto Rico needs Senate action to rebuild from hurricanes, multiple natural disasters, a debt crisis and rising joblessness and poverty. In order to fully recover, Puerto Rico will need more disaster aid and debt relief.

Last July, 11 religious leaders representing more than 95% of Puerto Rico’s population wrote Congress on the growing challenges facing the island. The letter asked for additional disaster recovery monies, measures to bring back pharmaceutical manufacturing jobs to Puerto Rico and the authorization of $1.2 billion for Nutrition Assistance Program benefits that impact 1.5 million people on the island. The letter was signed by leaders of the Catholic, Methodist, Lutheran, Christian (Disciples) and Evangelical Churches. The Puerto Rico Council of Churches, Catholic Charities (Caritas) and the General Bible Society also added their names to the letter to Congress.

Puerto Rico's debt crisis and natural disaster vulnerabilities are flip sides of the same coin. Debt crisis solutions must ensure Puerto Rico is prepared to respond, withstand and recover from natural disasters and external shocks.

Your actions continue to make a big difference and as the Senate considers a range of Puerto Rico proposals, your action is needed now.

Up to this day, thousands of family homes remain damaged or destroyed, with residents living under blue tarp roofs. Please call your Senators and urge them to act.

Gratefully,

Aldo

Aldo Caliari
Senior Director of Policy and Campaigns
Jubilee USA Network
[email protected]
www.jubileeusa.org/support-us

Les Echos, the first and one of the largest daily financial newspapers in France, featured Eric LeCompte's comments on the recent election of Mauricio Claver-Carone as the president of the Inter-American Development Bank. Read the full article here.

Le candidat de Trump élu à la tête de la BID

By Thierry Ogier

Mauricio Claver-Carone devient le premier Américain à présider la Banque interaméricaine de développement (BID), au terme d'un scrutin controversé et dans une conjoncture particulièrement délicate.

Réglé comme du papier à musique. Le stratagème conçu par Donald Trump pour faire élire un de ses conseillers à la tête de la Banque interaméricaine de développement (BID) a parfaitement fonctionné. Mauricio Claver-Carone, un Américain d'origine cubaine âgé de quarante-cinq ans, a été porté samedi à la présidence de l'institution avec 68 % des voix.

Candidat unique, il est parvenu à surmonter les critiques de ses opposants qui auraient préféré reporter le scrutin en mars, en raison de la pandémie. Malgré le retrait de la candidature de l'Argentine, farouche adversaire de Washington, le taux d'abstention de 25 %, qui aurait permis d'invalider le scrutin, n'a pas été atteint. L'administration Trump a notamment fait pression sur le Mexique et les Etats d'Amérique centrale.

Ainsi, et pour la première fois en 61 ans d'histoire, un ressortissant des Etats-Unis va diriger cette institution, qui est l'une des principales sources de financement pour l'Amérique latine et les Caraïbes.

Faucon

« On n'a jamais vu ça dans l'histoire de la BID, assure Roberto Simon, directeur du Council of Americas, mettant en cause le profil idéologique du vainqueur. Ce n'est pas seulement le fait que ce soit un Américain qui l'ait emporté (NDLR : en violation d'une règle non écrite qui réserve la présidence de la BID à un Latino-américain), mais Claver-Carone est vraiment quelqu'un qui a travaillé à la Maison-Blanche sous l'administration Trump, dont il était le conseiller pour l'Amérique latine, avec des vues très radicales sur Cuba, le Venezuela et le Nicaragua. »

De quoi plaire toutefois à l'électorat hispanique en Floride, voire même aider Donald Trump dans la course à la Maison-Blanche… Le secrétaire d'Etat américain Mike Pompeo n'a pour sa part pas tardé à saluer la victoire d'un « grand défenseur des institutions démocratiques ». Cette mainmise sur l'organisation lui permettra également de freiner l'influence grandissante de la Chine dans la région.

Pandémie

Mauricio Claver-Carone va succéder au colombien Luis Alberto Moreno dès le 1er octobre. « Le rôle de la BID n'a jamais été aussi crucial qu'à présent. L'Amérique latine, qui est l'épicentre de la pandémie, subit le choc économique le plus sévère de l'histoire », affirme Roberto Simon.

Le Brésil, qui avait retiré sa candidature pour soutenir celle des Etats-Unis, souligne que « la BID aura un rôle pour mobiliser les ressources nécessaires et appuyer la reprise économique de la région, essentiellement par le biais du secteur privé et des infrastructures ».

Elections américaines

Certains ne dissimulent guère leurs craintes. « Claver-Carone devra administrer la banque sans prendre parti afin que les pays de la région puissent échapper à cette crise », estime Eric Le Compte, directeur de Jubilee USA Network, une ONG catholique à Washington.

Autre interrogation : en cas de victoire de Joe Biden à l'élection présidentielle de novembre, le nouveau président de la BID, soutenu par Donald Trump,  pourrait se retrouver en porte à faux. « Cette polarisation au sein de la banque risquerait de l'affaiblir », affirme un observateur, et ce précisément au moment où la banque aura besoin d'une augmentation de capital pour faire face aux nouvelles demandes de financement.

Jan Miyasaki interviews Eric LeCompte on the WORT-FM Radio 8 O'CLOCK BUZZ segment. Eric discusses his recent meetings with both the Federal and Central Banks Retreat along with a UN COVID- 19 Relief meeting. Listen here.

Washington DC - On August 27 and 28, the US Federal Reserve and other government central banks meet for their annual retreat. Traditionally held in the picturesque location of Jackson Hole, Wyoming, this year the meeting will take place virtually under the theme “Navigating the decade ahead: Implications for monetary policy.”

“Government banks are grappling with a global economy projected to worsen,” said Eric LeCompte, the Executive Director of Jubilee USA Network. “The meeting will give us a view of what role central bankers wish to play in the battle against the economic impacts of the coronavirus.”

The global economy is expected to contract by almost 5%. Emerging market and developing economies already held historically high levels of debt before the COVID-related crisis. Latin America is expected to contract about 10%.

These economic forecasts translate to United Nations projections that poverty will increase for the first time in 20 years. Ultimately, more than 130 million people will fall into extreme poverty during the next decade.

“The fate of the economy and global poverty levels are intertwined,” said LeCompte.