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The institutionalist implications of an odious debt doctrine.(Odious Debts and State Corruption Conference)

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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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