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The institutionalist implications of an odious debt doctrine.(Odious Debts and State Corruption Conference)
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Law and Contemporary Problems
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June 22, 2007
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Copyright informationCOPYRIGHT 2007 Duke University, School of Law. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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I
INTRODUCTION
Sovereigns incur debts, and creditors look to the law to hold sovereigns to their obligations. The odious debt doctrine intrudes on this settled pattern when (1) a despotic regime incurs a debt (2) for purposes that are inimical to the general welfare of the population, and (3) the creditor knows of the loan's illegitimate purpose. The doctrine purports to provide a successor regime with a full legal defense to the creditor's claim for repayment when these three requirements are met/But this begs the question of its legal status.
The United States originated the concept of odious debt over a century ago, but since World War II, it has regularly ...
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