Debt Management for Development

Debt Management for Development

Protection of the Poor and the Millennium Development Goals

Kunibert Raffer

This book exposes intolerable global double standards in the treatment of debtors and argues that fairness, economic efficiency and principles common to all civilized legal systems, must and can be applied to so-called ‘developing countries’, or Southern sovereign debtors.

Chapter 8: Poverty, Debtor Protection and the MDGs

Kunibert Raffer

Subjects: development studies, development economics, economics and finance, development economics

Extract

The World Commission on the Social Dimension of Globalization (2004) concluded that the eradication of poverty and the attainment of the MDGs should be seen as the first steps towards a socioeconomic ‘floor’ for the global economy. Without any doubt, debt management must also respect this floor, which means it must not extract resources for debt service that are needed to finance this minimum. In the parlance of insolvency lawyers: the universally accepted idea of resources exempt from seizure by bona fide creditors must finally be applied to the only debtors not benefitting from this protection of human dignity. The fact that all official creditors have accepted the MDGs and are officially committed to achieve them avoids long discussions on what precisely debtor protection should include. It took national legal systems a very long time to establish what has meanwhile become generally accepted standards in national insolvency cases. Using the MDGs would avoid long discussions on what and how much should be exempt, and it would immediately improve living conditions notably. A difference remains though. While all individual debtors are unconditionally protected from hunger and guaranteed at least a modest minimum of resources, not all people would enjoy this minimum standard after achieving the MDGs. Many people would continue to live on less than one dollar a day or go hungry, as many people did before the debt crisis. This should be of great concern, and development policies must aim at overcoming this inhumane situation. Unfortunately though, this is a...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information