Bill Overview
Title: To provide support for international initiatives to provide debt relief to developing countries with unsustainable levels of debt, and for other purposes.
Description: This bill requires the Department of the Treasury to support and advocate for debt relief for developing countries. Treasury must engage with international financial institutions and creditors to advocate for support, implementation, and improvement of the Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative (DSSI) (and any successor framework or similar coordinated international debt treatment process). (The DSSI is an initiative established by the Group of 20, the informal grouping of 19 major economies and the European Union, that provides temporary debt restructuring for the world's poorest countries. The common framework is a framework endorsed by 39 creditors to provide permanent debt forgiveness.) Treasury must also engage with international financial institutions and creditors to advocate for a comprehensive debt payment standstill for each participating debtor while the debtor's application for relief under the common framework and negotiations related to such relief are pending or ongoing. Treasury must also order U.S. representatives to the International Monetary Fund and the World Bank to advocate and vote for such initiatives and policies without undermining the respective institution's ability to provide new and additional aid and assistance.
Sponsors: Rep. Ocasio-Cortez, Alexandria [D-NY-14]
Target Audience
Population: People living in developing countries with unsustainable levels of debt
Estimated Size: 330000000
- The bill aims to provide debt relief to developing countries with unsustainable levels of debt.
- Developing countries often have large populations who are affected by national debt issues through reduced public services and economic growth.
- Debt relief can directly impact the economic stability and public service capabilities in these countries, benefiting millions of individuals.
Reasoning
- The policy may indirectly affect people in the U.S., as it involves the U.S. Treasury's participation in international debt relief efforts. This can influence global financial stability, which may have subtle impacts on the U.S. economy that affect citizens, particularly those involved in international trade, finance, or industries that rely on economic stability abroad.
- Considering the budget, the policy is primarily focused on external benefits, and direct impact on U.S. citizens is minimal. However, potential ripple effects on the economy, international relations, and global market stability could have broader long-term impacts.
- Interview samples include individuals loosely associated with international trade, education sectors, and finance who might be more aware of such international policies. Most individuals might notice little immediate change but perceive potential long-term benefits or concerns about U.S. financial involvement.
- A range of perspectives includes those most likely to see effects (e.g., individuals working in international sectors) and those unlikely to be aware of the policy, reflecting the general population.
Simulated Interviews
Finance Analyst (New York, NY)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- This initiative seems positive for global economic health, especially for developing countries.
- It could stabilize international markets in the long-term, which benefits us indirectly in finance sectors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Software Developer (San Francisco, CA)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 16/20
Statement of Opinion:
- Hear about these things through the news, but it doesn't directly impact my job or daily life.
- I guess in some way it helps maintain global stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Graduate Student (Seattle, WA)
Age: 25 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 15/20
Statement of Opinion:
- These efforts align with global stability missions; it seems like a constructive approach.
- Whether it affects me directly is hard to gauge—I see more academic interest than daily impact.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
High School Teacher (Chicago, IL)
Age: 58 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 18/20
Statement of Opinion:
- It's great if the U.S. uses its position to help those in greater need. I try to instill that in my students.
- I personally don't feel much change, but it's a point of pride to be part of a helping nation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Small Business Owner (Austin, TX)
Age: 50 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 10/20
Statement of Opinion:
- Stability in developing countries can improve and expand markets for small businesses like mine.
- Policies like this could indirectly benefit economic conditions globally—possibly incrementally improving my enterprise.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
International Trader (Miami, FL)
Age: 36 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- Policies like these can make transactions smoother by stabilizing struggling economies.
- The effect on my work is indirect but potentially favorable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Policy Advisor (Washington, D.C.)
Age: 47 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This policy aligns with my work focus on international debt management.
- Seeing U.S. engagement is encouraging, and it's impactful on my well-being as an advocate.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Freelance Writer (Boston, MA)
Age: 29 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 14/20
Statement of Opinion:
- Policies aimed at debt relief are vital for equitable global development.
- While I specialize in writing about these topics, their impact on my life is generally indirect.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Retired (Denver, CO)
Age: 64 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 18/20
Statement of Opinion:
- I watch global policies with interest. Actions for developing countries can only be positive, even if the effects aren't immediately tangible here.
- As a taxpayer, I'd prefer my contributions are used to help reduce poverty globally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Compliance Officer (Houston, TX)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 13/20
Statement of Opinion:
- Relieving debt for developing countries is crucial—it can influence stability in regions we work with.
- On a personal level, this indirectly affects my job when working with international compliance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Cost Estimates
Year 1: $25000000 (Low: $20000000, High: $30000000)
Year 2: $25000000 (Low: $20000000, High: $30000000)
Year 3: $26000000 (Low: $21000000, High: $31000000)
Year 5: $27000000 (Low: $21000000, High: $32000000)
Year 10: $30000000 (Low: $23000000, High: $37000000)
Year 100: $45000000 (Low: $35000000, High: $55000000)
Key Considerations
- This policy substantially relies on international cooperation and the effectiveness of the 'Common Framework'.
- Treasury's actions may enhance global perceptions of the US as a leader in poverty alleviation and debt relief.
- Potential resistance from other countries' creditors could alter the effectiveness and financial engagement needed.
- Budgetary allocations should be evaluated against the context of current U.S. deficits and fiscal policies.