Over 30 years ago, Kunibert Raffer (University of Vienna) was first to propose a fair and transparent arbitration process between debtors and creditors for resolving sovereign insolvency, by analogy with Chapter 9 US Bankruptcy Code that provides for an orderly resolution in cases of municipal bankruptcy. (See his paper “What’s good for the United States must be good for the World – Advocating an International Chapter 9 Insolvency”). He is a long-standing critic of the IMF in its lending policies for low and middle income countries. In this present paper, looking at the most recent events in Argentina, he argues that the IMF’s and other public lenders’ (“public vultures”) practices are more rapacious and damaging than those of private sector creditors – who have in Argentina’s case now agrees to take into account the need to ensure resources for social and economic development. You can download the paper here in pdf format.
Photo – acknowledgment to https://peoplesdispatch.org/