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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.

Publications - Reading list

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Recommended Reading list  

Books | Essays & Reports | Law articles

Books

Mascha Madörin and Gottfried Wellmer, Apartheid-Caused Debt, The role of German and Swiss Finance, Jubilee 2000 South Africa, 1998.

Jeff Rudin, Challenging Apartheid's Foreign Debt, Alternative Development & Information Centre, Woodstock, 1997.

Alejandro Olmos, Todo lo que usted quiso saber sobre la Deuda Externa y siempre se lo ocultaron, Editorial de los Argentinos, Buenos Aires, 1995.

Patricia Adams, Deudas Odiodas, un Legado de Insensatez economica y Saqueo Ambiental, Planeta, Buenos Aires, 1993.

D. P. O'Connell, State Succession in Municipal Law and International Law, vol. 1, Internal Relations, Cambridge at the University Press, 1967.

J. Russell Major, Civilization in the Western World: 1815 to the Present, J.P. Lippincott Company, Philadelphia and New York, 1966.

D.P. O'Connell, The Law of State Succession, Cambridge at the University Press, 1965.

J. B. Moore, Digest International Arbitrations, vol. 1, p. 343

Ernst H. Feilchenfeld, Public Debts and State Succession, The Macmillan company, New York, 1931.

Alexander N. Sack, La succession aux dettes publiques d'État,70, 1929.

Alexander N. Sack, Les effets des transformations des États sur leurs dettes publiques et autres obligations financičres, Recueil Sirey, Paris, 1927.

Essays and Reports

Advancing the Odious Debt Doctrine by Ashfaq Khalfan, Jeff King and Bryan Thomas
McGill University legal scholars have completed an investigation into the Doctrine of OdiousDebts, and concluded that it is both "morally compelling" and "relatively well supported underinternational law".
Centre for International Sustainable Development Law (CISDL), Montreal, March 11/2003

A world of debt by Rick Rowden
Because the IMF and the World Bank continue to impose structural-adjustment programs and show no willingness to forgive third-world debt in its entirety, the vaunted HIPC initiative is bound for spectacular failure. Meanwhile, third-world masses continue to have their health and education budgets slashed to pay for the debts of corrupt regimes from long ago.
The American Prospect vol. 12 no. 12, July 2, 2001 - July 16, 2001.

Concordats for debt cancellation - Making debt relief work twice -first, as money to the poor;second, for empowering the poor by Ann Pettifor
Programme Co-ordinator of Jubilee Plus calls for the development of an international legal framework for debt relief, governed by independent, fair and transparent processes.
Jubilee Plus June 01/2001

Still Waiting for the Jubilee: Pragmatic Solutions for the Third World Debt Crisis by David Roodman
David Roodman calls for debt relief strategies focused on reducing rich-country import barriers, scaling back export credit agencies and creating a sovereign bankruptcy panel to cancel "odious debts."
Order a softbound copy or download a pdf version of the 85 page report for $5
Wordwatch Institute April /2001

Criminal debt in the Indonesian context by Jeffrey A. Winters
Associate Professor of Political Economy at Northwestern University discusses the concept of criminal debt and corruption of World Bank funds in Indonesia.
Center for International and Comparative Studies, Northwestern University July 3/2000

Publicly guaranteed corruption: corrupt power projects and the responsibility of export credit agencies in Indonesia By Peter Bosshard
According to Peter Brossard, foreign companies in Indonesia secured exorbitant profits by participating in Suharto's corrupt regime. All the while, these comapnies were given political and financial support by northern governments, international financial institutions and export credit agencies.
Berne Declaration, November 2000

Export Credit Insurance and the fight against international corruption by Dieter Frisch
According to Transparency International, many Export Credit Agencies have have been wilfully blind to corrupt practices related to contracts they have guaranteed. In this Working Paper, the international NGO proposes a broad framework to encourage transparency and curtail such practices in the future.
Transparency International Working Paper February 26/1999

Dictators and debt by Joseph Hanlon
When dictators fall, it is expected that their democratically elected successors should repay their debts. Must the victims of oppression be expected to pay the cost of their own torture and imprisonment?
Jubilee 2000 November 01/1998

Law articles

"Legal problems of the overindebtedness of developing countries: The current relevance of the doctrine of odious debts", Günter Frankenberg and Rolf Knieper, International Journal of the Sociology of Law, 1984, 12.

"Effects of state and government succession on commercial bank loans to foreign sovereign borrowers", James L. Foorman and Michael E. Jehle, University of Illinois Law Review, vol. 1982, no.1

"Through a glass darkly: Reflections upon the history of international law of public debt in connection with state succession", M. H. Hoeflich, University of Illinois Law Review vol 1982, no. 1

"Repudiation of ultra vires state contracts and the international responsibility of rtates", Theodor Meron, International and Comparative Law Quarterly, vol. 6, April 1957.

"Diplomatic claims against the Soviets", Alexander N. Sack, New York University School of Law, Contemporary Law Pamphlets, Series 1, number 7, New York University Law Quarterly Review, New York, 1938.



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