Jubilee USA Panel at IMF/WB Annual Meetings

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

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IMF Speaks: World Economy Loses $3.7 Trillion Due to Pandemic and Economic Shocks

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."

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Pope Francis Releases "Laudate Deum" Ahead of Global Economy and Climate Meetings

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.

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Ghana Business News Mentions Jubilee and Partners' Economic Advocacy Workshop

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.

 

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Eric LeCompte Quoted in News24 on the Sustainable Development Goals

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.

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United Nations General Assembly Focuses on Debt, Development, Environment and Pandemic Preparedness

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.

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News24 Quotes Eric LeCompte on Debt's Effects on Global Development Goals

News24 quotes Eric LeCompte on the G20 and countries' debt effects on reaching the Global Development Goals. Read an excerpt below and click here for the full story.

Africa in the G20: The good, the bad, and the changing climate

By Lenin Ndebele 

Africa is the poorest and most climate-vulnerable region of the globe. And now it forms part of the powerful Group of 20 - technically making it the G21 - via the inclusion of the African Union (AU).

That, some believe, can change a lot of things. 

"This membership, for which we have long been advocating, will provide a propitious framework for amplifying advocacy in favour of the continent and its effective contribution to meeting global challenges," said AU chairperson Moussa Faki Mahamat in a statement.

Africa's primary difficulties were addressed in the New Delhi Declaration, which marked what has been widely regarded as the most progressive G20 summit since the group was founded in 1999 to debate global economic and financial issues.

 

Read more here.

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G20 New Delhi Summit: Jubilee USA Statement

G20 heads of state meet in New Delhi, with global economic challenges, development, debt and climate on the agenda. The leaders released their summit declaration.

Eric LeCompte is the Executive Director of the religious development group Jubilee USA Network who has tracked G20 meetings since 2010. LeCompte, releases the following statement on the G20 Leaders' Summit and Declaration:

"Amidst government tensions and global crises, it's pretty amazing the G20 agreed on a declaration.

"The G20 recognized that only 12 percent of the 2030 global development goals are on track.

"Debt relief is essential if countries are to have a chance at achieving development goals that reduce poverty and protect our planet.

"The G20 agreed that existing debt relief processes need to be faster, predictable, efficient and comprehensive.

"Unfortunately, actions to improve debt relief are moving too slowly.

"We still don't have a vehicle to push greater participation of debt relief from the private sector.

"With 60 countries in debt crises and skyrocketing interest rates, we only have a G20 process that has involved 4 countries.

"We are at a point where the G20 needs to do much more on debt relief to ease the growing global debt crisis.

"The G20 development bank expert group called for increasing resources for development banks by $260 billion annually.

"The G20 needs to figure out how to get these resources that are critical for addressing poverty.

"G20 finance ministers meet in Marrakesh in October to discuss further measures on strengthening development banks.  

"Ahead of the meeting, the IMF reported that the use of $650 billion of emergency pandemic aid or Special Drawing Rights was effective.

"The poorest countries were able to afford vaccines and essential services for their people due to Special Drawing Rights.

"The IMF report hints at the important role Special Drawing Rights could play in future international assistance efforts.

"The decision to make the African Union a permanent member of the G20 gives a voice to the poorest and most climate-vulnerable region in the world."

Read the G20 declaration here.

Read Jubilee USA's press release in advance of the G20 summit here.

Jubilee USA Network is an alliance of more than 75 US organizations and 750 faith communities working with 50 Jubilee global partners. Jubilee USA builds an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA wins critical global financial reforms and won more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org

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G20 Leaders Summit Focuses on Debt, Economic Development and Climate Change

World Bank Reports a Third of Developing Countries Face Slower Growth than Before Pandemic

G20 presidents and prime ministers gather in India for their annual summit to discuss global economic development. Absent from the meetings this year are Russia's President Vladimir Putin and President Xi Jinping of China. 

"G20 leaders are meeting as countries can't get out of debt and face food shortages and rising inflation," stated Eric LeCompte who heads the religious development coalition Jubilee USA Network. "As we face a number of global crises, the war in Ukraine is slowing decisions on global development."

The World Bank reported that one-third of developing countries will grow more slowly next year than in 2019, before the pandemic crisis. Because the Federal Reserve and other major central banks increased interest rates, developing countries are paying more on their debts.

“At least 60 countries cut human services and their climate change efforts in order to pay their rising debts," stated LeCompte. “The G20 has a critical role in moving forward more effective and efficient debt relief processes."

The group will review the debt situation in developing countries. In June, public and government creditors agreed to reduce debt for the second of four countries to apply to the G20's Common Framework, a debt reduction process the group set in 2020. Private creditors have not committed to matching debt reductions.

For the last two years the G20 had a focus on increasing resources for multilateral lenders and development banks. India’s G20 Presidency appointed former Secretary of Treasury Larry Summers and former Chairperson of the Fifteenth Finance Commission of India Nand Kishore Singh to chair a group of experts to examine additional needs to strengthen these multilateral lenders. 

In August, Africa interfaith religious leaders representing Catholic, Anglican, Presbyterian and other Christian denominations, the All Africa Council of Churches, Muslim and indigenous faiths called for increasing multilateral development bank finance.

“We welcome the international community’s exploration of ways to increase [multilateral development banks’] financing capacity and support combining new ways to use capital and capital increases in order to reach the desired scale,” the Africa religious leaders said in their August statement.

The New Delhi summit also reviews the impact of $650 billion in pandemic relief aid through an IMF 2021 emergency currency creation or Special Drawing Rights.

“The IMF reports that this pandemic relief helped the global economy, lowered borrowing costs and supported critical crisis spending in poor countries,” shared LeCompte. "Given the positive results from the use of Special Drawing Rights, the G20 should use this relief tool more widely."

As advanced economies received more than $400 billion in SDRs, the G20 agreed to transfer $100 billion to countries in need. The IMF reports pledges of more than $24 billion SDRs to its Poverty Reduction and Growth Trust, which lends to the poorest countries at zero-interest rates, and over $45 billion to a recently-created vehicle to provide long-term, low-cost pandemic preparedness and climate interventions loans.

“Special Drawing Rights held by wealthy countries are a cost-effective way they can contribute significantly to boosting development finance through the African Development Bank and other funding vehicles for climate, food, agriculture, infrastructure and other poverty-reducing priorities,” the Africa interfaith religious leaders stated.

Read Jubilee USA's press release on the Africa interfaith religious leaders meeting here.

Find more details on the G20 Summit here.

Find the IMF SDR Assessment Report here.

Read the Report of the G20 Independent Experts Group on Strengthening Multilateral Development Banks here.
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Annual Federal Reserve Retreat Focuses on Global Economic Changes

In Wyoming, Central Bank Heads and Economists Discuss Inflation and Debt

Wrestling with inflation, country debt levels at historic highs and pandemic related economic shocks, many of the world's central bankers are in Jackson Hole, Wyoming to discuss managing the economies of countries. The annual Federal Reserve 2-day policy symposium, "Structural Shifts in the Global Economy," includes remarks from Fed Chair Jerome Powell, European Central Bank President Christine Lagarde and Ngozi Okonjo-Iweala, World Trade Organization Director General.

"All over the world people can't afford food and poverty is increasing," said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. "Developing countries already pay 7% of their revenue on the interest of their debts. When the Federal Reserve raises interest rates, it means debts increase for countries in crisis."

In April, the IMF forecast the weakest growth in decades. Central banks continue pursuing measures, such as raising interest rates, attempting to fight inflation.

“Central bankers must weigh the reality that more than 165 million people became poor since 2020," noted LeCompte. "If the debts of developing countries continue to go up, countries have less resources to address poverty. When the debts of developing countries increase, food and fuel prices increase across the United States and Europe."

Read the Jackson Hole Economic Policy Symposium agenda here.

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Africa Faith Leader Meeting Organized by Jubilee and Partners Mentioned in National Catholic Reporter

Jubilee USA Network is mentioned in the National Catholic Reporter regarding the Africa Faith Leader Meeting in Nairobi. Read an excerpt below and click here for the full story.

Catholic bishops, faith leaders appeal for debt relief to help African countries

By Fredrick Nzwili

Ahead of major meetings of world leaders in September, such as the Africa Climate Summit, the G20 New Delhi Summit and the 78th session of the U.N. General Assembly, Catholic bishops and faith leaders in Africa are calling for debt relief for the continent to give Africa a "life line" to escape the multiple crises plaguing its population.

Amid discontent linked to the rising cost of food and living and growing inflation in Africa, economic burdens have been frustrating development, swelling poverty, and triggering conflicts and protests in some of the countries, according to the leaders.

The keyword for them to fix many pressing needs of African people is debt, or rather its reduction.

 

Read more here

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Africa Interfaith Leaders Call for Debt Relief and Crises Aid

Religious Groups Call for Jubilee 2025

African religious leaders called for resolving debt crises to deal with climate, health, food and energy crises facing the continent. The 26 religious leaders from 12 countries represent Catholic, Anglican, Presbyterian and other Christian denominations, the All Africa Council of Churches, Muslim, and indigenous faiths.

Ahead of the upcoming G20 and African Climate summits, the leaders met and issued a joint statement, calling for debt relief and changes to the financial system to address growing crises. Caritas Africa and the Jesuit Justice and Ecology Network Africa hosted the meeting in Nairobi.

African countries owe collectively more than $1.1 trillion in debt and 25 of them face debt crises according to the IMF and World Bank.

“In the late 1990s . . . our faith communities were among those gathered in the Jubilee movement to advocate for breaking the chains of debt in developing countries,” the religious leaders said. “As we approach a new Jubilee year in 2025, that promise remains unfulfilled.”

The 1990s advocacy culminated with the largest debt relief initiatives to date. The Heavily Indebted Poor Countries/ Multilateral Debt Relief Initiatives released $130 billion in exchange for borrowers implementing participatory poverty reduction policies and economic reforms.

“The stakes of this debt crisis are much higher,” the statement reads. “We need large investments to save the planet that sustains life in Africa and elsewhere, during a window that is rapidly closing.”

The leaders stated that the low use of the G20's debt relief initiative, in spite of the high number of countries in crisis is a sign of ineffectiveness. Their document emphasizes the need to address private creditors that hold more than 45% of African debt.

“[M]ajor financial centers that govern their contracts have a special responsibility to pass laws that bind them to share in debt relief,” the interfaith statement adds.  

They expressed support for the New York and International Debt Crises Protection Act. The bill, currently pending in the New York State Legislature would ensure that private creditors join debt relief initiatives. The bill is supported by almost a quarter of New York State lawmakers.

The leaders also addressed current needs for more development bank resources.

“African countries will need scaled up access to concessional and low-cost, long-term finance,” they said. “Multilateral development banks are the institutions most capable of deploying such type of funding, but cannot currently keep up with demand.”

In July, G20 finance ministers reviewed a report that makes the case for an additional $500 billion in external public finance to help developing countries meet climate and development goals. Multilateral development banks would have to increase annual grants and loans by $260 billion in order to meet the additional needs.

"Our convergence is... a robust testament to the cohesive strength of interfaith unity, combined wisdom, and a shared commitment to justice," added the leaders.

Read the full Nairobi African religious leaders statement here.

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