The Failure of the Foreign Bondholders Protective Council Experiment, 1934–1940
This article explores the contentious U.S. State Department–Foreign Bondholders Protective Council relationship in the context of interwar foreign economic policy and bureaucratic competition. U.S. officials created the council in 1933 to represent the interests of U.S. investors in the settlement of the numerous dollar bond issues that had gone into default. The article shows why the council failed to perform as U.S. officials expected and outlines the process by which they increasingly interposed themselves in debt negotiations. In doing so, it considers the limitations of using private organizations to accomplish the objectives of public policy.
When Governments Write Contracts: Policy and Expertise in Sovereign Debt Markets
At least three times in the past two decades, national governments and institutions at the regional and international levels have tried to reform sovereign bond contracts to facilitate debt restructuring. Increasingly, these efforts have focused on promoting majority modifications clauses, a species of collective action clause (CAC) that facilitates a binding debt restructuring. Rather than legislate or regulate, governments have convened expert commissions, produced model CACs, and aggressively marketed these clauses to debtors and creditors. When events prove the existing CAC template inadequate or irrelevant, the process begins anew. This paper considers this mode of government intervention, which has a long pedigree dating to at least the 1930s. Public officials have long justified contract reform initiatives by invoking a narrative of market failure in which market actors do not understand the relevance and importance of CACs. We cast doubt on this narrative and explore why contract reform holds such allure as a policy tool.
Arab Uprisings and the Outstanding Return to Democracy: Tunisia as a Model
In the wake of the Middle Eastern crises, the Tunisian case in focus has been doted as a unique phenomenon being that it was the Genesis of the revolution that ultimately spread across the Middle East like wild fire, but has eventually heralded a new dawn as democracy has incidentally returned to the Empire. This literature therefore looks closely at the extent to which the ‘DignityRevolution’ has been instrumental in the Middle East uprisings, which have brought an end to dynastic autocracies. The literature zeros in on the Tunisian uprising which has attracted global concerns, sympathy and has sparked interests in the international arena. The literature finds that the people hold colossal prospect in the uprising and its resultant effect, as it paved the way for the revolutionist to generate, gather and disseminate information on the condition of the entire region to the international community. The people in this context were of utmost importance and played a very crucial role in the creation of awareness, mobilization of protesters and utmost determining the direction of the uprising and also ensuring a speedy return to democratic rule. The paper submits that the role of the people in ensuring that the ruins of the uprising is not left littering around and democracy restored is highly commendable and should be a model for all other Arab countries involved in the revolution.