Rethinking Bretton Woods | Mon, Jun 24, 2002
In most countries, when a company goes insolvent it can file for bankruptcy before an independent judicial body. Thereby it can compel the collectivity of debtors to restructure its debt and continue to grow. However, there is as yet no independent body where debtor countries that face insolvency could initiate a timely process for an orderly debt restructuring. In this scenario, Argentina and its unfolding tragedy of hunger, poverty and despair is just the most recent example of what happens when creditors of a debtor country are not willing to provide for an adequate debt restructuring on time.
In this article, The Guardian features the Jubilee framework for insolvency, a civil society proposal to create at the international level a system that builds upon domestic bankruptcy regulations in order to achieve a fairer and humane solution for debtor countries.
Read Debtor Nations Need Funds not Froth, by Larry Elliott, the Guardian, Monday June 17, 2002
Read more about the proposal for a Sovereign Debt Restructuring Mechanism currently being discussed at the IMF and responses from civil society experts