Vatican backs Jubilee Report urging global debt crisis reforms, ethical restructuring, and forgiveness to aid developing nations.
Newsroom, June 24, 2024, Gaudium Press – The Vatican has thrown its weight behind a comprehensive report advocating urgent reforms to address the global debt crisis, which is disproportionately impacting billions in developing nations. Titled The Jubilee Report: A Blueprint for Tackling the Debt and Development Crises and Creating the Financial Foundations for a Sustainable People-Centered Global Economy, the document was unveiled on June 20 at the Pontifical Academy of Social Sciences as a cornerstone of the 2025 Jubilee Year of Hope.
Commissioned by Pope Francis in June 2024 and endorsed by Pope Leo XIV, the report is the product of the Jubilee Commission, a panel of 30 international economic experts, including Nobel laureate Joseph Stiglitz and former Argentine Economy Minister Martín Guzmán. It calls for an ethical overhaul of sovereign debt restructuring to alleviate the financial burdens crippling poorer nations.
A $97 Trillion Crisis
Citing U.N. data, the report notes that global public debt soared to $97 trillion in 2023, up $5.6 trillion from the previous year. Over 50 developing countries now allocate more than 10% of their tax revenues to interest payments, draining resources from critical sectors like healthcare, education, and climate resilience. “The debt crisis suffocating the global financial system is also fueling a development crisis,” the report warns.
To counter this, the commission proposes transformative measures, including:
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Establishing an international bankruptcy mechanism for sovereign nations, akin to corporate bankruptcy frameworks.
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Halting government bailouts for private investors.
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Providing bridge loans and short-term financial support for countries in crisis.
A Jubilee Legacy
The report aligns with the Catholic tradition of jubilee years, which emphasize mercy and debt forgiveness. In his 2024 papal bull Spes Non Confundit, Pope Francis urged governments to forgive the foreign debt of impoverished nations. This initiative echoes the Jubilee 2000 campaign, launched by St. John Paul II in 1997, which mobilized global religious communities and led to the cancellation of over $100 billion in debt. “Global finance must serve people and the planet — not punish the poorest to protect profits,” the report asserts.
Calls for Accountability
At the June 20 presentation, Stiglitz, a Columbia University professor and honorary fellow of the Pontifical Academy, criticized large private creditors like BlackRock for high-risk lending practices that precipitate crises. “Creditors bear greater responsibility,” he said, noting that lending is a voluntary transaction requiring expert risk analysis. He advocated for stronger multilateral development banks to offer loans at lower rates, making debt more sustainable.
Caritas International’s Alfonso Apicella emphasized the human toll of the crisis. Representing 162 global organizations, he urged policymakers to prioritize inclusive growth. “Sustainable growth for whom?” he asked, stressing that technical discussions must not overshadow the people affected. Apicella also called for reframing debt justice as a “win-win” for both the poor and policymakers.
Lessons from the Past
Kevin Gallagher, director of Boston University’s Global Development Policy Center, highlighted the need for structural reforms alongside debt relief. He criticized international organizations like the International Monetary Fund for pushing premature capital account liberalization on poor nations, while acknowledging that some developing countries have over-borrowed and under-invested. “Debt relief without reforming the international financial architecture will only lead us to repeat this cycle,” Gallagher warned, referencing the 2009 debt forgiveness efforts.
The Vatican’s endorsement of The Jubilee Report signals a renewed push for a people-centered global economy, rooted in justice and sustainability. As the 2025 Jubilee Year unfolds, the commission’s proposals aim to reshape international finance to prioritize the world’s most vulnerable.
- Raju Hasmukh with files from CNA
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