July, 16 2015, 11:00am EDT
For Immediate Release
Contact:
Dan Beeton, 202-239-1460
New Letters Highlight Growing Congressional Concern over IMF-Imposed Austerity, CEPR Co-Director Says
New letters from members of the U.S. Congress questioning International Monetary Fund (IMF) policies imposing austerity in countries such as Jamaica and Greece are a sign of growing concern and dissatisfaction with "failed" measures that result in unsustainable debt burdens and high unemployment as they hinder economic growth, Center for Economic and Policy Research (CEPR) Co-Director Mark Weisbrot said today.
WASHINGTON
New letters from members of the U.S. Congress questioning International Monetary Fund (IMF) policies imposing austerity in countries such as Jamaica and Greece are a sign of growing concern and dissatisfaction with "failed" measures that result in unsustainable debt burdens and high unemployment as they hinder economic growth, Center for Economic and Policy Research (CEPR) Co-Director Mark Weisbrot said today. Weisbrot referred to a new letter [PDF] signed by several members of the House of Representatives that was sent to President Obama Tuesday questioning the IMF's program for debt-addled Jamaica, and a congressional letter to IMF Managing Director Christine Lagarde on July 2 criticizing the austerity policies imposed on Greece that have resulted in an unsustainable debt burden and prolonged depression.
"It has become increasingly clear to members of Congress, to economists, and to the larger public that austerity programs in Jamaica, Greece and other countries - while having the stated purpose of to bringing down debt - have resulted in greater and unsustainable debt burdens for these countries and prolonged economic downturns, with no light at the end of the tunnel," Weisbrot said.
The congressional letter [PDF] on Jamaica notes:
Jamaica now has the world's most austere national budget - with a 7.5% primary surplus last year and for at least the next three years as part of the current IMF program. Its interest burden is among the world's highest (8% of GDP) and interest payments to multilateral financial institutions surpassed multilateral loan disbursements in 2012 and 2013. Last year, Jamaica paid $136 million more to the IMF than it received from it.
Members who signed the letter, Reps. Maxine Waters (D - Calif., Ranking Member on the Financial Services Committee), Yvette Clarke (D - N.Y.), Jackson Lee (D - Texas), Meeks (D - N.Y., also a Financial Services Committee member) and Rangel (D - N.Y.), urge the Obama administration to "revisit the terms of Jamaica's IMF program." In particular, the members state: "We believe that the IMF should lower Jamaica's budgetary surplus threshold, among other measures, and that the IMF and the multilateral development banks should urgently consider extending the maturities of the government's current loans."
The letter follows a July 2 letter from members of the House and Senator Bernie Sanders (D - Vt.) to IMF Managing Director Christine Lagarde that objected to the IMF "taking a hard line with respect to demands that Greece implement further reforms" and noted:
Greece has already reduced its national public sector work force by 19 percent and carried out many of the reforms demanded by the IMF and its creditors. It has gone through an enormous fiscal adjustment, achieving the largest cyclically adjusted primary budget surplus in the euro area last year; and a very large current account adjustment (with a 36 percent reduction in imports). At the same time, as even the IMF has acknowledged in its own research, the austerity imposed by Greece's creditors over the past five years turned out to be far more devastating to the economy than they had predicted.
The letter warned that legislation on IMF governance reform, desired by the IMF, could be held up in the U.S. Congress "if the IMF is seen as responsible for further damage to the Greek economy, as well as the currently unforeseeable consequences of any financial collapse."
"These letters represent significant pushback against the IMF's role in the debt crises in Jamaica and Greece," Weisbrot said. "The U.S. has veto power in the IMF, and the Fund may find it will have to take these congressional concerns seriously."
The Center for Economic and Policy Research (CEPR) was established in 1999 to promote democratic debate on the most important economic and social issues that affect people's lives. In order for citizens to effectively exercise their voices in a democracy, they should be informed about the problems and choices that they face. CEPR is committed to presenting issues in an accurate and understandable manner, so that the public is better prepared to choose among the various policy options.
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'Unacceptable,' Advocates Say as COP16 Ends Without Biodiversity Fund Deal
"Biodiversity finance remains stalled after a deafening absence of credible finance pledges from wealthy governments and unprecedented corporate lobbying," said one campaigner.
Nov 02, 2024
Officials at the international biodiversity conference that began in October were forced on Saturday to suspend talks without reaching an agreement on a key issue of the summit—a detailed finance plan for a dedicated biodiversity fund—after the meeting went into overtime and delegates began leaving.
The failure to reach an agreement on biodiversity finance was denounced by the head of environmental group Greenpeace's delegation at the 16th Conference of Parties (COP16) to the United Nations Convention on Biological Diversity (CBD), which took place over two weeks in Cali, Colombia.
"Governments in Cali put forward plans to protect nature but were unable to mobilize the money to actually do it," said An Lambrechts. "Biodiversity finance remains stalled after a deafening absence of credible finance pledges from wealthy governments and unprecedented corporate lobbying... Closing the finance gap was not merely some moral obligation but necessary to the protection of people and nature that grows more urgent each day."
Lambrechts added that with international leaders now preparing to attend the 2024 U.N. Climate Change Conference, or COP29, in Baku, Azerbaijan this month, "the non-decision on a fund damages trust between Global South and North countries."
The conference was aimed at ramping up progress toward meeting goals set by the Kunming-Montreal Global Biodiversity Framework in Canada in 2022. That framework calls for the protection of 30% of land and sea areas and the restoration of 30% of degraded ecosystems by 2030.
In Canada, delegations also agreed to phase out subsidies that are harmful to nature and to provide $200 billion per year for the protection of biodiversity by 2030, including $30 billion per year that would be transferred from rich to poor countries. A larger goal of ultimately generating $700 billion to protect nature was also part of the agreement.
About $15 billion was transferred in 2022, according to the Organization for Economic Cooperation and Development (OECD), and nations have pledged about $400 million to a Global Biodiversity Framework Fund.
But in Cali in recent days, Colombian environment minister Susana Muhamad offered a draft proposal for the establishment of a dedicated biodiversity fund—a priority for developing nations at the conference—only to have delegations including those from the European Union, Switzerland, and Japan reject the proposal.
"Two years ago, we made a commitment to do better and be better," said Jiwoh Abdulai, minister of environment and climate change for Sierra Leone. "This COP has neither delivered that additional funding nor given us confidence that governments will work together to deliver it in a transparent and urgent manner."
The Forests & Finance Coalition—which includes Amazon Watch, Rainforest Action Network (RAN), and Friends of the Earth U.S., among others—called the result of finance discussions at the meeting "disappointing."
"This latest development makes it all the more critical that banks and investors are stopped from financing destructive sectors that continue to drive nature loss and human rights abuses," said Tom Picken, RAN's forests and finance director.
Lambrechts acknowledged that "big pharma and big agribusiness failed to block a game-changing deal on corporate responsibility to pay up for nature protections."
COP16 delegates devised a plan to create a fund that would share the profits generated from digitally sequenced genetic data taken from plants and animals with the communities—mostly in the Global South—that the species come from.
Companies that make money from cosmetics, medicines, and other products that use digitally sequenced genetic data would pay into the fund, but the final agreement made participation voluntary, saying only that companies "should" contribute.
Indigenous delegates celebrated the creation of a permanent body within the CBD to represent the interests of Indigenous groups—a "historic victory," according to Leila Salazar-López, executive director of the nonprofit Amazon Watch.
A work plan was approved by the convention to expand the role of Indigenous people, local communities, and Afro-descendant people in the protection of biodiversity.
"Thanks to this new body and work plan approval, future COPs will work, amongst many other important issues, on land tenure, traditional knowledge and governance by Indigenous Peoples," said Isaac Rojas, forests and biodiversity coordinator for Friends of the Earth International (FOE). "It's a milestone in the struggle of Indigenous peoples for their rights. We congratulate them and share their joy following this win. But we have to remain vigilant, because these achievements may turn out to be empty words in view of the push for several false solutions."
FOE warned that false solutions, particularly biodiversity offsetting, were pushed heavily by corporations at the conference.
Corporate interests called for biodiversity credits—"tradeable assets intended to represent 'measurable outcomes'—such as protecting or restoring certain species or ecosystems, or parts of them," according to FOE. "Similar to carbon credits, they allow corporations to buy and sell these, to meet regulations or voluntary sustainability claims."
Nele Marien, forests and biodiversity co-coordinator for FOE, said Saturday that "corporations were here pushing very hard for all kinds of false solutions, for example on biodiversity offsetting, which had a lot of traction."
"They argue that they can keep pushing into new territories, and destroying these ecosystems, promising that they will compensate for this," said Marien. "This is simply impossible, because we don't have space in the world to compensate for these losses. Biodiversity offsetting is a mechanism that further perpetuates destruction, undermines human rights, and damages environmental justice."
A spokesperson for the CBD, David Ainsworth, told reporters that the conference would resume at a later date.
Estefania Gonzalez, deputy campaign director for Greenpeace Andino, said delegates were "able to take advantage of COP16 to bring much of the priority agenda of the Global South to the center of the negotiations, fighting to the last minute to reach agreements on financing."
But she added that "the resource mobilization committed by developed countries must be fulfilled immediately without further excuses."
"It is unacceptable that rich countries, besides failing to meet the $20 billion commitment," she said, "were unwilling to seek consensus on one of the most crucial issues: financing."
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Johnson Attempts Damage Control After Saying GOP, Trump Would Repeal Job-Creating CHIPS Act
"The Republican Speaker of the House just told the tens of thousands of construction workers building New York and America's future they want to send them pink slips ASAP," said Senate Majority Leader Chuck Schumer.
Nov 02, 2024
On MSNBC Friday night, U.S. Rep. Alexandria Ocasio-Cortez issued an unexpected "thank you" to House Speaker Mike Johnson—expressing appreciation for his admission that the GOP will try to repeal the CHIPS and Science Act, which has created more than 115,000 manufacturing jobs, if the party wins control of Congress and the White House.
"What I would like to thank Speaker Johnson for is his honesty and his forthrightness about what they plan to do with a Republican majority in the House of Representatives," said Ocasio-Cortez (D-N.Y.). "You heard it straight from the horse's mouth and we'll see exactly what happens if we allow a Republican majority in the House and a Donald Trump presidency."
The congresswoman was referring to an interview by Luke Radel, a student journalist at Syracuse University, who asked Johnson (R-La.) about Trump's recent comments that the CHIPS and Science Act is "so bad."
"You voted against it," said Radel. "If you have a Republican majority in Congress and Trump in the White House, will you guys try to repeal that law?"
"I expect that we probably will, but we haven't developed that part of the agenda yet," said Johnson before attempting to pivot to talking about Rep. Brandon Williams, a Republican who represents New York's 22nd District, where a $100 billion Micron Technology chipmaking facility has benefited from the CHIPS and Science Act.
"The Republican Speaker of the House just told the tens of thousands of construction workers building New York and America's future they want to send them pink slips ASAP," said Senate Majority Leader Chuck Schumer (D-N.Y.).
The exchange grew increasingly awkward as Radel asked Williams whether he would vote to repeal the legislation, signed by President Joe Biden in 2022, that Micron has said will create 50,000 semiconductor manufacturing jobs in the Syracuse area.
"No, obviously, the CHIPS Act is hugely impactful here, and my job is to keep lobbying on my side," said Williams. "I will remind [Johnson] night and day how important the CHIPS Act is and that we… break ground on Micron."
Speaking with anchor Chris Hayes on MSNBC, Ocasio-Cortez said the CHIPS Act "is not a remote and faraway thing for workers" in Upstate New York, Michigan, Arizona, and other states where jobs have been created by the legislation.
For thousands of workers, the law represents "the jobs and especially the union jobs that result and are created, that people can actually take and will help them put food on the table without having to work triple or double overtime in order to accomplish that," said Ocasio-Cortez. "People in Buffalo, people in Upstate New York, people in Michigan, they hear about the plant that they work at."
The International Brotherhood of Electrical Workers (IBEW) echoed the congresswoman's sentiment, saying Johnson's plan to repeal the CHIPS Act would impact "tens of thousands of IBEW jobs created by this administration."
"We are NOT going back," said the union.
Johnson's remark got the attention of other politicians whose states have benefited from the law, including Sen. Mark Kelly (D-Ariz.), Rep. Jasmine Crockett (D-Texas), and Michigan Gov. Gretchen Whitmer.
Less than two weeks ago, Whitmer announced that through the CHIPS Act, the Biden administration had provided $325 million in direct funding to Michigan manufacturer Hemlock Semiconductor, allowing it to create over 1,000 good-paying construction jobs to build a new facility as well as 180 permanent manufacturing jobs.
"Mike Johnson's asinine admission that he would repeal the CHIPS Act if Republicans and Trump win the election is a complete disaster for thousands of Michigan workers relying on the jobs that this legislation provides," said the Democratic governor. "Make no mistake, a repeal of the CHIPS Act would kill thousands of good-paying manufacturing jobs right here in Michigan."
Johnson attempted to do damage control, saying he had "misheard the question," but Radel noted that he was standing close to the House speaker when he asked about the CHIPS Act and others commented that the word "repeal" was said clearly. Williams and Johnson also tried to backtrack during their exchange with the student journalist, saying they aimed only to reform the law—but as Radel noted, the former president has made clear he opposes the CHIPS Act.
Vice President Kamala Harris' Democratic presidential campaign said Johnson's threat to repeal the CHIPS Act is the latest of several recent questionable "promises" made by Trump and his surrogates in the last days before the election.
"Mike Johnson wants to lose Arizona, Georgia, Michigan, and North Carolina jobs," said James Singer, a rapid response adviser to Harris, posting an image showing where the CHIPS Act has created semiconductor manufacturing jobs.
Johnson's comments came as Ocasio-Cortez, United Auto Workers president Shawn Fain, Rep. Rashida Tlaib (D-Mich.), and others were rallying Michigan UAW members at a labor-focused get-out-the-vote event in Detroit.
"I do not see elections as an endpoint," Ocasio-Cortez told UAW members at the rally. "They are a waypoint... Because the larger task that we have today is organizing a mass movement of labor in the United States of America. We have a generational task ahead of us, and electing Kamala Harris is an opening silo to the movement that we are about to embark upon."
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South Carolina Execution 'Assembly Line' Rolls On With Killing of Richard Moore
"The state is motivated to kill condemned people as quickly as possible, and they do that despite evidence that might change their minds," said one anti-death penalty campaigner.
Nov 01, 2024
Despite pleas from his sentencing judge, jurors in his trial, and the former head of the state Department of Corrections, South Carolina executed Richard Moore by lethal injection Friday evening after Republican Gov. Henry McMaster and the U.S. Supreme Court declined to intervene in the latest in a series of state-sanctioned killings.
The Charleston Post and Courierreported that Moore was pronounced dead at 6:24 pm local time, 21 minutes after the lethal injection was administered.
"Tonight, the state of South Carolina needlessly took the life of Richard Moore—a loving father and grandfather, a loyal friend, and a devoted follower of Christ," the criminal justice reform group Justice 360 said in a statement. "He was not a danger to anyone, and the state eliminated a glowing example of reform and rehabilitation."
Moore, 59, was convicted of the 1999 murder of convenience store clerk James Mahoney. Moore—who was unarmed when he entered the store—argued that he shot Mahoney in self-defense after the clerk pulled out a gun during an argument over correct change. An all-white jury found Moore guilty of murder and armed robbery.
"This is definitely part of my life I wish I could change. I took a life. I took someone's life. I broke the family of the deceased," Moore said in a video accompanying his clemency petition. "I pray for the forgiveness of that particular family."
Death penalty opponents said Moore's case underscores capital punishment's literally fatal flaws.
"Richard Moore's case, like those of so many others on death row, was tainted with racial bias, including as the two prospective Black jurors were peremptorily dismissed, resulting in an all-white jury," Amnesty International USA researcher Justin Mazzola said in a statement after the execution.
"In addition to the racial bias, the crime that Moore committed was not premeditated, which raised serious concerns as to whether it rose to the level for which the death penalty is reserved in U.S. constitutional law," Mazzola added. "It's shameful that racial bias and lack of premeditation were not enough to convince Gov. McMaster to grant clemency to Richard Moore. Gov. McMaster could have used his clemency power instead of overseeing yet another execution in his state."
Moore was initially forced to choose whether he would be killed by electric chair or firing squad following the 2021 passage by South Carolina's Republican-led Legislature of a new capital punishment law amid a shortage of the lethal injection drug pentobarbital. Moore chose the firing squad.
In 2022, the South Carolina Supreme Court temporarily stayed Moore's execution. He subsequently changed his choice of execution method after the state restocked pentobarbital.
Advocates for Moore pointed to his flawless prison behavior and mentorship to other inmates. Among those urging clemency for Moore were Retired Circuit Court Judge Gary Clary, who sentenced Moore to die.
"Over the years I have studied the case of each person who resides on death row in South Carolina," Clary wrote to McMaster on Tuesday. "Richard Bernard Moore's case is unique, and after years of thought and reflection, I humbly ask that you grant executive clemency to Mr. Moore as an act of grace and mercy."
Jon Ozmint, director of the South Carolina Department of Corrections (SCDC) from 2003 to 2011, wrote, that that Moore "has proven himself to be a reliable, consistent force for good on death row."
However, McMaster informed SCDC Director Bryan Stirling Friday that he had "carefully reviewed and thoroughly considered" Moore's application and "declined to grant executive clemency in this matter."
Moore is the second person executed in South Carolina since it resumed executions. In September, the state killed 46-year-old Freddie Owens. Four more South Carolina death row inmates have exhausted their appeals. They are likely to be executed in the coming months.
"It's like an assembly line," Paul Bowers of the ACLU of South Carolina toldThe Guardian. "The state is motivated to kill condemned people as quickly as possible, and they do that despite evidence that might change their minds."
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