Advanced Search
MyIDEAS: Login

IMF in Theory: Sovereign Debts, Judicialisation and Multilateralism

Contents:

Author Info

  • Jérôme Sgard

    (Centre d'études et de recherches internationales)

Registered author(s):

    Abstract

    It is argued that the successive regimes for restructuring sovereign debts, since the early 20th century have been shaped by the articulation of three institutional functions: information gathering and economic expertise, then third-party mediation, lastly policy enforcement, also called conditionality. Whereas these functions where integrated within the Fund during the 1980s’ debt crisis, mediation has now been outsourced, under the pressure of the demand by the private sector for a thorough judicialisation of the restructuring process. That is, its inscription within rather rigid procedural rules which would provide much more protection against the interests and the intervention of the sovereigns, especially G7 governments. Two responses to this demand have been formulated: the creation of a supra-national “bankruptcy court”, as envisaged in the SDRM proposal put forward by the IMF in 2001; and the reliance upon national courts, specifically those in which jurisdiction the initial debt contracts had been signed. This latter option corresponds to the contract-based approach to sovereign defaults based on Collective Action Clauses, which was eventually adopted in spring 2003. It is defended that outsourcing third-party mediation makes the IMF considerably much weaker, as it remains with only two functions and no consistent rules of interaction with its traditional partners – private investors and the government of debtor countries.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://spire.sciences-po.fr/hdl:/2441/6881/resources/sgard-cepii-wp04-21.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Sciences Po in its series Sciences Po publications with number 2004-21.

    as in new window
    Length:
    Date of creation: Dec 2004
    Date of revision:
    Handle: RePEc:spo:wpmain:info:hdl:2441/6881

    Contact details of provider:
    Web page: http://www.sciencespo.fr/
    More information through EDIRC

    Related research

    Keywords: Multilateralism; Conditionality; Sovereign Debts; Judicialisation; IMF;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Marc Flandreau, 1997. "Central Bank Cooperation in Historical Perspective: A Sceptical View," Economic History Review, Economic History Society, vol. 50(4), pages 735-763, November.
    2. Ruggie, John Gerard, 1992. "Multilateralism: the anatomy of an institution," International Organization, Cambridge University Press, vol. 46(03), pages 561-598, June.
    3. Stone Sweet, Alex, 1999. "Judicialization and the Construction of Governance," Center for Culture, Organizations and Politics, Working Paper Series qt2fc6571w, Center for Culture, Organizations and Politics of theInstitute for Research on Labor and Employment, UC Berkeley.
    4. repec:att:wimass:8813 is not listed on IDEAS
    5. Gould, Erica R., 2003. "Money Talks: Supplementary Financiers and International Monetary Fund Conditionality," International Organization, Cambridge University Press, vol. 57(03), pages 551-586, June.
    6. Jeremy I. Bulow & Kenneth Rogoff, 1988. "Sovereign Debt: Is To Forgive To Forget?," NBER Working Papers 2623, National Bureau of Economic Research, Inc.
    7. Nielson, Daniel L. & Tierney, Michael J., 2003. "Delegation to International Organizations: Agency Theory and World Bank Environmental Reform," International Organization, Cambridge University Press, vol. 57(02), pages 241-276, March.
    8. Stanley Fischer, 1999. "On the Need for an International Lender of Last Resort," Journal of Economic Perspectives, American Economic Association, vol. 13(4), pages 85-104, Fall.
    9. Nouriel Roubini, 2002. "Do We Need a New Bankruptcy Regime?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(1), pages 321-333.
    10. Anna J. Schwartz, 2003. "Do Sovereign Debtors Need a Bankruptcy Law?," Cato Journal, Cato Journal, Cato Institute, vol. 23(1), pages 87-100, Spring/Su.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:spo:wpmain:info:hdl:2441/6881. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Spire @ Sciences Po Library).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.