(81) In his own co-authored article assessing the Ecuadorian move, the attorney traced the country's ostensible legal justification to the revival of the odious debt
doctrine in the Iraqi debt restructuring.
is sovereign debt incurred by a government lacking popular consent, utilized for no legitimate public purpose.
Contents Iraq's External Debt Paris Club Debt Claims Non-Paris Club Debt Claims Commercial Debt Claims The Debt Relief Effort Paris Club Debt Relief Evian Approach Iraq's Paris Club Agreement Non-Paris Club Debt Relief Commercial Debt Relief Potential Policy Precedents for International Debt Relief Granting a Stay on the Enforcement of Creditor Rights Flexibility of Paris Club Agreements Implementing an Odious Debt
Strategy List of Figures Figure 1.
Their stand is based on Alexander Sack's 1927 view on what he called "odious debt
Also, in the rush to mortgage Iraq, Iraqi people should not be bound by contracts and long-term agreements signed on their behalf, nor should they be liable for odious debt
incurred by Saddam's regime.
The principle of odious debt
was codified in the early 20th century by a Russian political theorist, Alexander Nahum Sack.
Archbishop Ndungane of Cape Town argues that much of the debt was odious and deserved to be forgiven in the spirit of the Doctrine of Odious Debt
. According to this doctrine, "where a debt has been incurred which is not in the interest of the state, but to strengthen a despotic regime, to repress the population that fights against it...
In particular, they examine the extent to which common-law principles of contract, tort, and lender liability--as well as fundamental principles of insolvency--might provide an effective defense for a new government that is sued for failure to make payments on an odious debt
incurred during the prior reign of a despot.
This is fully in line with the first condition of the odious debt
At a time when issues surrounding the Jubilee 2000 campaign for cancellation of the external debt of the poorest countries are widely debated, can bankers sitting comfortably in their London offices really rest assured that their loans will never be classified as odious debt
and altogether reneged upon if and when a peaceful transition succeeds in Angola?
Proposals for legal reform have been influenced by attempts to grapple with the doctrine of odious debt
, which also underlay some of the arguments in Donegal.
These case studies are followed by papers suggesting measures for reducing capital flight and its associated costs, including international rules and institutions for the identification and recovery of flight capital, capital management techniques for regulating capital inflows and outflows, and the cancellation of odious debt