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Partially odious debts?
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Law and Contemporary Problems
- Article date:
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September 22, 2007
- Author:
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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
The despotic ruler of a poor nation borrows extensively from foreign creditors. He spends some of those funds on building statues of himself, others on buying arms for his brutal secret police, and he places the remainder in his personal bank accounts in Switzerland. The longer the despot stays in power, the poorer the nation becomes. Although the secret police are able to keep pro-democracy protests subdued by force for many years, eventually there is a popular revolt. The despot flees the scene with a few billion dollars of his ill-gotten gains. The populist regime that replaces the despot now has to pay the debts to the foreign creditors of the old ...
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