José Antonio Ocampo
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780231179263
- eISBN:
- 9780231542029
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231179263.003.0011
- Subject:
- Economics and Finance, Macro- and Monetary Economics
The chapter provides a history of debt crises resolution and the rise of the current “non-system,” which mixes the Paris Club for official debts, voluntary renegotiations with private creditors and ...
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The chapter provides a history of debt crises resolution and the rise of the current “non-system,” which mixes the Paris Club for official debts, voluntary renegotiations with private creditors and occasional ad hoc debt-relief initiatives (the Brady Plan and Highly-Indebted Poor Countries and Later Multilateral Debt Relief Initiatives). This system, he argues, not only provides inadequate solutions but does not guarantee equitable treatment, neither of different debtors nor of different creditors. He then proposes a multilateral mechanism for sovereign debt restructuring that offers a sequence of voluntary negotiations, mediation and eventual arbitration with pre-established deadlines, similar in a sense to the World Trade Organization’s dispute settlement mechanism.Less
The chapter provides a history of debt crises resolution and the rise of the current “non-system,” which mixes the Paris Club for official debts, voluntary renegotiations with private creditors and occasional ad hoc debt-relief initiatives (the Brady Plan and Highly-Indebted Poor Countries and Later Multilateral Debt Relief Initiatives). This system, he argues, not only provides inadequate solutions but does not guarantee equitable treatment, neither of different debtors nor of different creditors. He then proposes a multilateral mechanism for sovereign debt restructuring that offers a sequence of voluntary negotiations, mediation and eventual arbitration with pre-established deadlines, similar in a sense to the World Trade Organization’s dispute settlement mechanism.
