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Missionary Oblates of Mary Immaculate  United States Province

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Jubilee USA Network Petitions IMF to Bolster Healthcare for World’s Poorest People March 25th, 2020

IMF Coronavirus Action: Protect Vulnerable, Prevent Financial Crisis

Friends,

The coronavirus impacts all of us.

My family and all of us at Jubilee USA are holding you and our world in prayer. Please keep us and our vital mission in your thoughts and prayers as well.

As the coronavirus takes lives, impacts the markets, affects health care and drives a potential global financial crisis – will you sign our urgent IMF petition to cancel debt and expand aid to bolster healthcare for countries affected by Covid-19?

When you sign our petition, you urge actions that can protect all of us from financial crisis, lift the vulnerable and ensure our world emerges to be more resilient in the face of this pandemic.

Because of our work together, we created global processes to bolster healthcare in the developing world when disaster strikes and deathly diseases spread. Ten years ago, when earthquakes decimated Haiti, we moved the International Monetary Fund to create a process to relieve Haiti’s debt and strengthen Haiti’s health and education systems. In 2014, as the Ebola epidemic devastated Guinea, Liberia and Sierra Leone, we successfully transformed that IMF process. The Catastrophe Containment and Relief Trust created innovative healthcare grants, debt relief and hundreds of millions of dollars to fight Ebola and put better clinics in place.

Yesterday the head of the IMF told the G20 she wanted to raise the capacity of this catastrophe relief process that can help poor countries wrestling with the health and economic impacts of the coronavirus.

This is very welcome news.

Now we need your help to ensure that more countries can access this and other IMF processes that deliver aid, cancel debt and help our world mitigate the economic and health impacts of the coronavirus. Our petition calls for debt payments to stop while countries battle the coronavirus and its economic impacts.

And yesterday – the President of the World Bank encouraged the G20 to stop debt payments for very poor countries.

African Finance Ministers called for suspension of debt payments to free up $44 billion to fight Covid-19. Ecuador’s Congress also demanded its government stop paying debt.

On Monday, the leadership of Jubilee USA wrote the head of the IMF and urged:

  • Bolstering healthcare in developing countries affected by Covid-19 by increasing debt relief and aid through the Catastrophe Containment and Relief Trust and other expanded processes

  • Mobilizing additional financing resources to support all countries impacted by the economic and health impacts of the coronavirus

  • Enhancing debt restructuring, issuing debt payment moratoriums and creating expedient debt reprofiling processes for countries impacted by the coronavirus

  • Advising countries to emerge from the crisis with more resilience by encouraging policies and agreements to increase protections for the vulnerable, instill greater public budget transparency, implement financial crisis and market protections, promote responsible lending and borrowing and curb corruption and tax evasion

 Jubilee USA’s executive committee, Reverend Steve Herder, Celeste Drake, Rabbi Matthew Cutler, Reverend Aniedi Okure and myself noted in our letter to the head of the IMF:

“Economic forecasts warn that a possible financial crisis or depression, spurred by the coronavirus, could be worse than the 2008 financial crisis. Nearly 100 million people, mostly women and children, were pushed into extreme poverty and 22 million jobs were lost worldwide in the 2008 crisis. The International Labor Organization says the numbers of jobs lost could surpass 50 million as a result of a new, deeper financial crisis… A well-designed, globally-coordinated response from the international community can go a long way to prevent and mitigate the impacts of the Covid-19 crisis and move us towards a recovery path.”

Please join us now and urge International Monetary Fund action.

In the coming days and weeks, Jubilee USA will offer more analysis and recommendations for US and international decision makers. More than ever, we are counting on you to take action and join our campaigns.

With our voices joined together, we can recover from this moment and build a more resilient global community.

In hope,

Eric LeCompte


IMF Paper: Corporate Tax Avoidance Hurts Global Economy and Poor Countries June 25th, 2014

tax dayThe International Monetary Fund (IMF) released a staff paper noting that corporate tax avoidance negatively impacts all economies, but hurts developing countries the most. The IMF’s release comes as the G20, the Organization for Economic Cooperation and Development and United Nations bodies seek vehicles to diminish corporate tax avoidance.

“The developing world loses more in corporate tax avoidance than it receives in aid from developed countries,” stated Eric LeCompte, Executive Director of the religious anti-poverty group, Jubilee USA Network. “The paper shows that when multinational corporations shift their profits to another country to pay less taxes, we see higher levels of global inequality.”

The IMF paper is entitled “Spillovers in International Corporate Taxation.” “Spillovers” are the impact of one country’s policies on another country. By shifting profits to countries with low tax-rates (often so-called “tax havens”), corporations avoid paying their taxes in the countries where they make those profits. The paper notes that this is a particularly large problem in developing countries, which need corporate taxation to fund social services. The paper argues that “many developing countries…need to be better protected against the avoidance of tax on capital gains on natural resources.”

“These ‘spillovers’ are more like a flood,” noted LeCompte. “For every $1 poor countries are receiving in official aid, nearly $10 is leaving through corruption and tax avoidance.”

Read the IMF paper.

 

Thanks to Jubilee USA for this information.

 


Broad-Based Coalition of Policy Experts Urges Congress to Pass IMF Reforms March 11th, 2014

Ukraine Economy and US Leadership at Stake

0013729e42ea0b75991708190 policy experts, business and academic leaders, and former Senate-confirmed appointees who had oversight responsibilities for organizations like the International Monetary Fund (IMF) and World Bank yesterday delivered a unified message to Congress: promptly enact IMF quota reform legislation. Fr. Seamus Finn, OMI signed the letter on behalf of the Missionary Oblates of Mary Immaculate. The Oblates have long supported New Rules for Global Finance, which works for fundamental reforms at the IMF.

The broad-based bipartisan letter to Speaker Boehner and Majority Leader Reid comes at a time when Congress is considering a $1 billion bilateral emergency assistance package for Ukraine to help the country stabilize its economy during its crisis with Russia. Senate Foreign Relations Committee Chairman Robert Menendez (D-NJ) and Ranking Member Bob Corker (R-TN) displayed the foresight and joint leadership to respond strongly to the Ukraine crisis by introducing the Ukraine relief bill, which includes the IMF quota reform legislation. Ukraine is also seeking IMF assistance directly.

Treasury Under Secretaries Tim Adams, David McCormick, David Mulford, and Jeffrey Shafer, and five IMF Executive Directors that served under Republican Administrations, among other former senior government officials, support the IMF reform legislation. “The IMF has played a crucial role in the global approach to recent financial crises and in navigating the world economy through severe threats. While the United States is on a path to recovery, threats remain…and the IMF has been called upon to support reform in Ukraine. In times like these, a financially strengthened and reformed IMF is in the U.S. interest,” notes the letter.

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