Sovereignty at Stake with Debt Restructuring. State, Global Capital Markets and Debt International Diplomacy

In the international economic governance, the question of debt restructuring is recurring. In 2003, the deputy manager of the IMF pushed for the implementation of a debt restructuring mechanism, which was not accepted by its board. Eleven years after this first attempt, the G77, leaded by Argentina and Bolivia pushed the United Nations for a new international mechanism for debt restructuring. The result of this initiative was a resolution including 9 principles on debt restructuring adopted without the support of most of the OECD countries.

In this paper, based mainly on qualitative interviews with the stakeholders of debt restructuring, we will describe the balance of power in the emergence of an international mechanism that would organize debt restructuring. Focusing on the last initiative at the United Nations, we will analyze the background and the position of the stakeholders (Diplomats; economists; NGOs representatives; etc.) in the negotiation. We will give an importance place to the international organizations acting in the process, both as forum and as contributor to the debate.