(October 3, 1994) The World Bank, which is celebrating its 50th anniversary this year, has long enjoyed a sound financial reputation. But its AAA credit rating is not justified. Because of the perverse incentives under which the World Bank operates, the quality of its loan portfolio has diminished significantly, and because the bank is backed by rich-country governments, its irresponsible lending exposes Western taxpayers to a possible World Bank bailout on a scale comparable to the U.S. savings-and-loan bailout. That would leave taxpayers in the industrialized countries on the hook for $100 billion; U.S. citizens would be liable for nearly $30 billion.
‘Dictatorship, Democracies and the Debt Crisis’ (Part II)
(June 1, 1993) The analysis demonstrates that a debt crisis can be expected when borrowing decisions are made by corrupt agents whose behaviour cannot be controlled by their principals.
‘Dictatorship, Democracies and the Debt Crisis’ (Part I)
(June 1, 1993) Arvind K. Jain uses the concept of agency theory to analyse the effects of corruption of the decision makers on the level of foreign debt.
Dictatorship, democracies and the debt crisis
(June 1, 1993) The fall of the Saddam Hussein regime in Iraq has called on lenders to account for their funding decisions as never before. Only two decades ago, the prevailing wisdom held that loans to governments were the least likely to go sour because government guarantees eliminated commercial risk. Dictators, in other words, posed no more or less risk than anyone else.
Why Canada should not contribute to the World Bank’s IDA-10 replenishment
(November 2, 1992) View speech
Public debate of odious debts
(November 12, 1991) View speech
IBRD, Articles of Agreement: Article III, section 5
(February 16, 1989) IBRD Articles of Agreement require the bank to “make arrangements to ensure that the proceeds of any loan are used only for the purposes for which the loan was granted.” World Bank
Foreign Corrupt Practices Act (U.S.)
(December 6, 1988) The FCPA prohibits corrupt payments to foreign officials for the purpose of obtaining or keeping business. The Department of Justice is the chief enforcement agency, with a coordinate role played by the Securities and Exchange Commission (SEC).
Great Britain v. Costa Rica
(October 18, 1988) Held: (a) In respect of the Banking Transactions: That the Costa Rican Law of Nullities, which in effect relieved Costa Rica of any obligations in respect of these transactions, did not constitute an international wrong. The transactions in question, which in themselves did not constitute transactions of an ordinary nature and which were ” full of irregularities,” were made at a time when the popularity of the Tinoco Government had disappeared, and when the political and military movement aiming at the overthrow of that Government was gaining strength.
Charter of the United Nations
(October 24, 1945) The representatives of 50 countries met at San Francisco from April 25 to June 26, at the United Nations Conference International Organization, and drew up the United Nations Charter that came into force on October 24, 1945.
Tinoco Arbitration
(March 7, 1923) Convention between the British Government and the Government of Costa Rica for the submission to arbitration of certain claims against the government of Costa Rica, signed at San Jose de Costa Rica, January 12, 1922.
Treaty of Peace between Spain & the United States
(April 11, 1899) Concluded at Paris December 10, 1898; ratification advised by the Senate February 6, 1899; ratified by the President February 6, 1899; ratifications exchanged April 11, 1899; proclaimed April 11, 1899.
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