Too Little, Too Late: The Quest to Resolve Sovereign Debt Crises (Initiative for Policy Dialogue at Columbia: Challenges in Development and Globalization)

The current approach to resolving sovereign debt crises does not work: sovereign debt restructurings come too late and address too little. Though unresolved debt crises impose enormous costs on societies, many recent restructurings have not been deep enough to provide the conditions for economic recovery (as illustrated by the Greek debt restructuring of 2012). And if the debtor decides not to accept the terms demanded by the creditors, finalizing a restructuring can be slowed by legal challenges (as illustrated by the recent case of Argentina, deemed as "the trial of the century"). A fresh start for distressed debtors is a basic principle of a well-functioning market economy, yet there is no international bankruptcy framework for sovereign debts. While this problem is not new, the United Nations and the global community are now willing to do something about it. Providing guidance for those who intend to take up reform, this book assesses the relative merits of various debt-restructuring proposals, especially in relation to the main deficiencies of the current nonsystem. With contributions by leading academics and practitioners, Too Little, Too Late reflects the overwhelming consensus among specialists on the need to find workable solutions. Acknowledgments -- Introduction / Martin Guzman, Jose Antonio Ocampo, and Joseph E. Stiglitz -- General issues of sovereign debt restructuring -- Fixing sovereign debt restructuring / Martin Guzman and Joseph E. Stiglitz -- Sovereign debt of developing countries : overview of trends and policy perspectives / Marilou Uy and Shichao Zhou -- Public debt, private power : the political economy of sovereign debt governance / Skylar Brooks and Domenico Lombardi -- Two case studies : argentina and greece -- From the Pari passu discussion to the illegality to pay / Sergio Chodos -- Title TBD / Yanis Varoufakis -- Improvements to the contractual approach -- Count the limbs : designing robust aggregation clauses in sovereign bonds / Anna Gelpern, Ben Heller, and Brad Setser -- Contractual and voluntary approaches to sovereign debt restructuring : there's still more to do / Richard Gitlin and Brett House -- Creditor committees in sovereign debt restructurings : understanding the benefits and addressing concerns / Timothy Desieno -- Sovereign debt restructuring : a cosean persective / James Haley -- Proposals for a multinational framework for sovereign debt restructuring : principles, elements, and institutionalization -- A brief history of sovereign debt resolution, and a proposal for a multilateral instrument / Jose Antonio Ocampo -- Towards a multilateral framework for recovery from sovereign insolvency / Barry Herman -- Making a legal framework for sovereign debt restructuring operational / Jurgen Kaiser -- Perspectives on a sovereign debt restructuring framework : less is more / Richard Conn -- Towards a framework for sovereign debt restructuring : what can public international law contribute? / Robert Howse -- Debts, human rights, and the rule of law : advocating a fair and efficient sovereign insolvency model / Kunibert Raffer -- Index Contents Acknowledgments Introduction PART 1 General Issues of Sovereign Debt Restructuring 1. Creating a Framework for Sovereign Debt Restructuring That Works 2. Sovereign Debt of Developing Countries: Overview of Trends and Policy Perspectives 3. Private Creditor Power and the Politics of Sovereign Debt Governance PART 2 Two Case Studies: Argentina and Greece 4. From the Pari Passu Discussion to the “Illegality” of Making Payments: The Case of Argentina 5. Greek Debt Denial: A Modest Debt Restructuring Proposal and Why It Was Ignored PART 3 Improvements to the Contractual Approach 6. Count the Limbs: Designing Robust Aggregation Clauses in Sovereign Bonds 7. Contractual and Voluntary Approaches to Sovereign Debt Restructuring: There Is Still More to Do 8. Sovereign Debt Restructuring: A Coasean Perspective 9. Creditor Committees in Sovereign Debt Restructurings: Understanding the Benefits and Addressing Concerns PART 4 Proposals for a Multinational Framework for Sovereign Debt Restructuring: Principles, Elements, and Institutionalization 10. A Brief History of Sovereign Debt Resolution and a Proposal for a Multilateral Instrument 11. Toward a Multilateral Framework for Recovery from Sovereign Insolvency 12. Making a Legal Framework for Sovereign Debt Restructuring Operational: The Case for a Sovereign Debt Workout Institution 13. Perspectives on a Sovereign Debt Restructuring Framework: Less Is More 14. Toward a Framework for Sovereign Debt Restructuring: What Can Public International Law Contribute? 15. Debts, Human Rights, and the Rule of Law: Advocating a Fair and Efficient Sovereign Insolvency Model Contributors Index The current approach to resolving sovereign debt crisis does not work: sovereign debt restructurings come too late and address too little. Though unresolved debt crises impose enormous costs on societies, many recent restructurings have not been deep enough to provide the conditions for economic recovery (as illustrated by the Greek debt restructuring of 2012). And if the debtor decides not to accept the terms demanded by the creditors, finalizing a restructuring can be slowed by legal challenges (as illustrated by the recent case of Argentina, deemed "the trial of the century"). A fresh start for distressed debtors is a basic principle of a well-functioning market economy, yet there is no international bankruptcy framework for sovereign debts. While this problem is not new, the United Nations and the global community are now willing to do something about it. Providing guidance for those who intend to take up reform, the book assesses the relative merits of various debt-restructuring proposals, especially in relation to the main deficiencies of the current nonsystem. With contributions by leading academics and practitioners, Too Little, Too Late reflects the overwhelming consensus among specialists on the need to find workable solutions. -- from dust jacket. The current approach to resolving sovereign debt crises does not work: sovereign debt restructurings come too late and do too little. While this problem is not new, the United Nations and the global community are now willing to do something about it. Providing guidance for those who intend to take up reform, this book assesses the relative merits of various debt-restructuring proposals, especially in relation to the main deficiencies of the current nonsystem. The current approach to resolving sovereign debt crises does not work: sovereign debt restructurings come too late and do too little. Providing guidance for those who intend to take up reform, this book assesses the relative merits of various debt-restructuring proposals, especially in relation to the main deficiencies of the current nonsystem.