‘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.

Advertisements

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.