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| Picture Credit: jubileeaustralia.org |
What does it mean for countries to be broke? Why does it keep happening? Who should bear the cost? Jubilee Australia’s new report “Alternatives to Debtors' Prison: Developing a Framework for International Insolvency” examines the history and key patterns of international insolvency. It denounces the Bretton Woods Institutions for their history of poor policy advice and financial mismanagement, which should clearly bar them from setting lending standards. The report proposes to introduce an International Arbitration Mechanism that would prioritize governments’ obligations to meet the essential needs of their citizens, introduce a modicum of accountability to financing decisions, and elevate debt renegotiation decisions to a neutral and legitimate forum.
