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The Third World's Odious Debt
The South makes compelling moral arguments to cancel its foreign debts. But, it also has an indisputable legal case because the overwhelming majority of those debts are odious in law.
"If a despotic power incurs a debt not for the needs or in the interest of the State, but to strengthen its despotic regime, to repress the population that fights against it, etc., this debt is odious for the population of all the State."
- Alexander Sack, 1927
In 1927, Alexander Sack the world's pre-eminent legal scholar on public debts, defined the Doctrine of Odious Debts, which remains the ultimate legal source on that subject. The Doctrine of Odious Debts, though now 70 years old, helps bring clarity to today's complicated Third World debt situation, and fairness to a tragedy in which innocent Southern citizens pay, and corrupt and negligent borrowers and lenders get away scot-free.

Corruption

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Times Onlines   April 16/2004

Berlusconi corruption trial stalls after resumption  

The corruption trial against Silvio Berlusconi, the Italian Prime Minister, resumed today, four months after a controversial law granting him immunity from prosecution was annulled by the country's highest court.

But the trial was quickly adjourned after Signor Berlusconi's lawyers requested a new presiding judge to hear the case, because the present one had discussed the trial in newspaper interviews.

The panel of three judges then retired to consider the request.

Signor Berlusconi is accused of bribing judges to block a business rival's takeover of SME, a state-owned company. The alleged bribery took place in 1985, long before Signor Berlusconi went into politics.

Signor Berlusconi denies any wrongdoing and has insisted that he was only serving the nation's interests when he intervened in the deal.

The corruption trial, which is being held in Milan, was adjourned last June after Signor Berlusconi's Forza Italia Party rushed a new immunity law through the Italian Parliament.

The new immunity law shielded Italy's top five state officials from prosecution for as long as they held office.

But the Italian Constitutional Court then declared in January that the law was contrary to the constitutional principle that all citizens were equal before the law. The decision opened the way for the resumption of court proceedings.

The trial arrives at a sensitive time for Signor Berlusconi, who was not in court today, because it could undermine his standing ahead of the forthcoming European and local elections in June.

Niccolo Ghedini, one of Signor Berlusconi's defence lawyers, has indicated he will attempt to get the case adjourned for a month starting in mid-May because of the elections.

Signor Berlusconi is expecting a hard fight at the elections, due on June 12 and 13. They promise to be an important test for him in the wake of recent polls, which show a decline in his Government's popularity.

Signor Berlusconi, who is Italy's richest man, has been battling legal problems stemming from his business empire for years. He maintains he is the victim of what he claims is a political vendetta by left-wing magistrates.

Signor Ghedini said he expects a verdict by the summer. The defence team will call more than 20 new witnesses, including the current Cabinet Undersecretary, Gianni Letta, who is a longtime Berlusconi aide.

No appearance by Signor Berlusconi has been scheduled. So far he has showed up three times during the trial, which started in 2000. Defendants are not required to attend their trials in Italy.



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