Pope calls for UN to address \\\'oppressive\\\' lending

Pope Francis promoted a series of specific economic policies on debt, trade and tax to alleviate poverty in his address on Monday to the United Nations General Assembly.  The Pope's UN speech followed his address to a joint session of Congress where he emphasized building bridges to protect the vulnerable and address inequality.
"The Pope just called for responsible lending policies to benefit the vulnerable," noted Eric LeCompte, executive director of the religious anti-poverty coalition Jubilee USA Network. LeCompte advises the Vatican and the UN on finance and poverty issues. "He's connecting the failure of austerity and reckless lending policies to poverty and plight."
Pope Francis began his speech to the UN by calling on international financial institutions to prevent "oppressive lending systems" from harming vulnerable communities. He specifically referenced "usury" -- the practice of charging exceptionally high interest rates -- as a form of abuse hurting developing countries.
Francis encouraged the United Nations to use its administrative agencies to address structural poverty issues. This summer, Pope Francis endorsed a UN global bankruptcy process for countries.
"It's amazing to see Pope Francis talk about usury and the responsibility of creditors," stated LeCompte. "Pope Francis told the UN that it has a responsibility to use its agencies to solve the debt crisis."
Meanwhile, Pope Francis began the first leg of his three-city US tour, focusing his central message on an economy that serves everyone.
"The Pope's central message will focus on an economy that leaves no one behind," said Eric LeCompte of Jubilee USA Network. LeCompte who works with the Vatican and Catholic Church leadership on global finance and addressing poverty, observed: "This Pope speaks specifically on economic issues and how they impact poverty."
The Pope's US visit comes as the Catholic Church prepares for the upcoming "Jubilee Year," a celebration focused on mercy and compassion for the poor. The Jubilee Year is tied in Catholic teaching to global economic policies that alleviate poverty. In the late 1990's in response to a global debt crisis, the Catholic Church joined global religious bodies to found the Jubilee movement that won $130 billion in debt relief for more than 30 of the world's poorest counties.
Last year, Pope Francis and Vatican Secretary State Cardinal Pietro Parolin met a Jubilee delegation led by LeCompte. During Vatican meetings, the Church emphasized its support for global debt, tax and trade polices that can end poverty.
In July, Pope Francis expressed support for a United Nations global bankruptcy process that could help Greece or developing countries mired in debt. Pope Francis said, "if a company can declare bankruptcy, why can't a country do so and we go to the aid of others?" On September 10, the United Nations voted 136-6 with 41 abstentions to adopt principles to guide debt processes for countries in crisis, a step towards a bankruptcy process.
"The Pope believes we need a transparent and sustainable global economy," noted LeCompte. "His message is good news for most of us and bad news for a small group of hedge funds."
Earlier, Pope Francis called for an international bankruptcy process in a news conference as he left Latin America. Francis offered comments noting that too many countries are struggling with high debts and he suggested a United Nations bankruptcy proposal could be the solution.?
"Pope Francis knows that heavy debt loads cause poverty and inequality," said Eric LeCompte, who consulted the Vatican on its position. "The Pope's statement is a logical extension of the Catholic Church's strong support of debt relief for struggling countries."
Last year, LeCompte led a delegation of global Jubilee organizations to advise Vatican Secretary of State Cardinal Pietro Parolin on the need for a bankruptcy process to address inequality. The Catholic Church is a founder of Jubilee USA and supports its efforts to win debt relief for struggling countries.
In September of 2014, the United Nations General Assembly voted 124-11 to develop the bankruptcy process that Pope Francis referenced. LeCompte addressed the UN earlier this year on the creation of the process. This Fall, the United Nations is set to review progress on the proposal. Because International Monetary Fund (IMF) studies point to debt as a cause of inequality, the IMF is exploring aspects of a bankruptcy process based on an April 2013 paper. In addition to the debt crisis in Greece, nearly 50 countries? face worrying levels of debt distress, according to World Bank statistics.
"A bankruptcy process is critical if we want less poverty and if we want to prevent financial crisis," stated LeCompte, who consulted a recent United Nations Conference on Trade and Development road map that fed into the UN bankruptcy process. "Bankruptcy means less inequality and more global stability."  
The writer is Communications Director, Jubilee USA Network.
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