Why the Code of Conduct for Resolving Sovereign Debt Crises Falls Short
Working Paper #143
In this paper the author situates the “Principles for Stable Capital Flows and Fair Debt Restructuring in Emerging Markets” in the context of international policy developments for treating sovereign debt crises in the late 1990s and early years of the present decade. The paper then discusses the Principles in some detail and suggests why some of their features are attractive and others are not. This in itself suggests what features of a more balanced set of principles might look like. It also looks at how the Principles have been received (without enthusiasm) and sees this as an opening for a new approach to the problem.
About the Author
Visiting Senior Fellow, Graduate Program
The New School
Barry Herman (Ph.D., University of Michigan) is Visiting Senior Fellow at the Graduate Program in International Affairs of The New School in New York. He has been a member since its founding in 2010 of the Advisory Board of Social Justice in Global Development e.V., an international NGO registered in Germany that promotes reform of global development policies and improved global economic governance by preparing papers and organizing seminars and conferences for information exchange, advocacy and development education (www.socdevjustice.org). Also, from its inception in 2005 until end 2011, he was a member of the Board of Directors of Global Integrity, a research NGO based in Washington that works with independent scholars and investigative reporters on assessing laws, institutions and practices to improve governance and limit corruption in developed and developing countries. In addition, from 2004 to 2009 he co-chaired the Task Force on Debt Restructuring and Sovereign Bankruptcy at the Initiative for Policy Dialogue at Columbia University. He completed almost 30 years in the United Nations Secretariat in 2005, the last two years of which were as Senior Advisor in the Financing for Development Office in the Department of Economic and Social Affairs (DESA). He consults with various offices of the United Nations and other official bodies and non-governmental networks on international economic and financial policies (most recently, the World Council of Churches in 2012).