VATICAN CITY. Pope Francis issued a compelling plea on Wednesday for international efforts to alleviate the crippling debt burdens faced by low-income countries, warning that failure to act could plunge millions into a cycle of poverty and despair.
Addressing a Vatican conference focused on the debt emergency in the global south, the Pope highlighted the devastating impact of record global debt levels, which reached $313 trillion in 2023. Developing economies, in particular, have seen unprecedented ratios of debt to gross domestic product (GDP), exacerbating economic hardships.
“The problem is causing misery and distress for millions of people around the world,” Pope Francis stated. He emphasized the need for a comprehensive multinational mechanism to address the debt crisis, noting, “In order to try to break the debt-financing cycle, it is necessary to create a multinational mechanism … that takes into account the global nature of the problem and its economic, financial, and social implications.”
Despite the introduction of the “Common Framework” by the world’s 20 largest economies in 2020, aimed at streamlining debt restructuring for struggling nations, progress has been slow. Zambia’s protracted four-year battle to emerge from default underscores the challenges and inefficacies of current debt relief efforts.
Currently, there is no global law governing international bankruptcies, a gap Pope Francis criticized for perpetuating a “mentality of ‘every person for himself or herself’, where the weakest always lose.” Drawing from Argentina’s experience of defaulting three times this century, he asserted, “No government can morally require that its people suffer deprivations incompatible with human dignity.”
The Pope’s call for action is particularly timely as the Roman Catholic Church prepares for the Holy Year, or Jubilee, in 2025, a significant event in the Church calendar. He has urged wealthy nations to commemorate the Jubilee by offering substantial debt relief to impoverished countries.
Nobel Prize-winning economist Joseph Stiglitz, attending the Vatican conference, echoed the Pope’s concerns. He pointed to the COVID-19 pandemic and the war in Ukraine as major shocks to the global economy, pushing many nations to the brink of a new sovereign debt crisis. “We need a Jubilee debt restructuring and a re-ordering of our global economic architecture to make sure that it doesn’t happen again,” Stiglitz said.
The global Jubilee 2000 campaign previously led to $130 billion in debt cancellation for poor countries between 2000 and 2015. As the world faces mounting economic challenges, the call for renewed efforts to address debt relief has never been more urgent.
Si Venus L Peñaflor ay naging editor-in-chief ng Newsworld, isang lokal na pahayagan ng Laguna. Publisher din siya ng Daystar Gazette at Tutubi News Magazine. Siya ay isa ring pintor at doll face designer ng Ninay Dolls, ang unang Manikang Pilipino. Kasali siya sa DesignCrowd sa rank na #305 sa 640,000 graphic designers sa buong daigdig. Kasama din siya sa unang Local TV Broadcast sa Laguna na Beyond Manila. Aktibong kasapi siya ng San Pablo Jaycees Senate bilang isang JCI Senator.
