Restructuring Sovereign Debt: The Case for Ad Hoc Machinery (Hardcover)

by Lex Rieffel (Author) "The machinery for sovereign debt workouts is part of a complex financial system within a more complex global political system..." (more)
Key Phrases: sovereign debt workouts, workout machinery, sovereign workouts, Paris Club, World Bank, United States (more...)

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Product Description
The Western powers established the International Monetary Fund (IMF) and the World Bank after World War II as "permanent machinery" to anchor the Bretton Woods system. When developing countries began experiencing debt problems in the late 1960s, the Paris Club took shape as "ad hoc machinery" to restructure debt from export credit agencies. A decade later the London Club process emerged to handle workouts of commercial bank debt. Restructuring debt in the form of bonds became an issue in the late 1990s in Argentina and several other nations, and the IMF recently proposed a permanent mechanism to deal with that challenge. Restructuring Sovereign Debt explains why ad hoc machinery would function more effectively in the Bretton Woods system.

By describing in detail the origins and operations of the London Club and Paris Club, Lex Rieffel highlights the pragmatism and flexibility associated with ad hoc approaches. He also recalls earlier proposals for creating permanent debt restructuring machinery and the reasons why they were not adopted. Recognizing that the issue of sovereign debt workout is complex, Rieffel has provided a comprehensive and detailed exposition of this important policy issue.

Rieffel’s book is an important tool for policymakers and the public, particularly as the global community seeks to resolve the debt problems of countries as diverse as Argentina, Iraq, and Côte d’Ivoire.

About the Author
Lex Rieffel brings to this subject forty years of experience with economic development and international finance. In the early 1970s he worked for the U.S. Agency for International Development (U.S. AID), including two years in Jakarta, Indonesia. During eighteen years with the U.S. Treasury Department he participated in numerous Paris Club negotiations, served on the staff of the U.S. executive director in the International Monetary fund, and directed the office responsible for issues related to the countries of Eastern Europe and the former Soviet Union at the beginning of their transitions. At the Institute of International Finance from 1994 to 2001, he was the senior adviser for multilateral policy issues, focusing primarily on private sector involvement in crisis prevention and resolution. Currrently he is teaching, consulting, and writing.

Product Details

• Hardcover: 368 pages
• Publisher: Brookings Institution Press (September 2003)
• Language: English
• ISBN-10: 081577446X
• ISBN-13: 978-0815774464
• Product Dimensions: 9.2 x 6.3 x 1.2 inches
• Shipping Weight: 1.4 pounds (View shipping rates and policies)
• Average Customer Review: 4.0 out of 5 stars See all reviews (1 customer review)
• Amazon.com Sales Rank: #1,313,367 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

1 of 1 people found the following review helpful:

4.0 out of 5 stars A Good Read!, July 28, 2004

By	Rolf Dobelli "getAbstract.com" (Switzerland) - See all my reviews (TOP 50 REVIEWER)    (REAL NAME)

Author Lex Rieffel writes with authority on the history of developing countries' debt crises. He describes this difficult and complex subject concisely and meticulously. To be sure, he wrote this text as an argument for a specific policy objective (keeping flexibility in the sovereign debt workout process), and does not shy away from hammering his point home multiple times. However, his agenda in no way diminishes the accuracy of his history or his factual descriptions of the entities that shaped it. The first four chapters are an excellent primer on the subject, and could stand alone. The later chapters provide a wealth of detail, perfect for those who need it, albeit a bit tedious for anyone not directly involved in sovereign lending. We recommend this book to bankers involved in making loans to foreign countries, to government policymakers in borrower countries and lender countries, and to anyone seeking a detailed exploration of how countries pay their debts.