Odious Debts

The Third World's Odious Debt

The South makes compelling moral arguments to cancel its foreign debts. But, it also has an indisputable legal case because the overwhelming majority of those debts are odious in law.

"If a despotic power incurs a debt not for the needs or in the interest of the State, but to strengthen its despotic regime, to repress the population that fights against it, etc., this debt is odious for the population of all the State."

- Alexander Sack, 1927

In 1927, Alexander Sack the world's pre-eminent legal scholar on public debts, defined the Doctrine of Odious Debts, which remains the ultimate legal source on that subject. The Doctrine of Odious Debts, though now 70 years old, helps bring clarity to today's complicated Third World debt situation, and fairness to a tragedy in which innocent Southern citizens pay, and corrupt and negligent borrowers and lenders get away scot-free.

Latest news

Ecuador's default by Odious Debts Online
Audit findings prompt refusal to pay 'illegitimate' debt. December 12/2008

Debt cancellation a victory for the world by Desmond Tutu
"Much of this debt originates from loans made to corrupt and oppressive regimes that did not benefit the population." The Baltimore Sun May 7/2008

Chad's checkmate
World bank system to safeguard oil revenues "hasn't exactly worked as expected." Odious Debts Online March 26/2008

World Bank funds Kenya's 'culture of corruption'
Crooked tracks have yet to derail the World Bank money train to Kenya. Odious Debts Online March 26/2008

AIDS for India
World Bank and the government of India launch face-saving investigation after defective HIV/AIDS test kits, purchased with bank funds, are supplied by the Indian government to hospitals and blood banks across the country. Odious Debts Online March 19/2008

Folsom quits
The World Bank's chief anti-corruption investigator calls it a day: pressure to leave over allegations her appointment due to Republican party connections. Odious Debts Online January 16/2008

Scholars chart new legal course
Duke Law School journal dedicates two issues to ideas presented at first-of-its-kind odious debts conference. Odious Debts Online January 16/2008

'World Bank disgrace': Wall Street Journal
A review of World Bank loans to India's health sector by the Bank's own internal watchdog, indicates fraud and corruption put lives at risk, enriching contractors in the process. Worse still, says WSJ, the bank repeatedly looked the other way. Odious Debts Online January 14/2008

Clearly odious
How the citizens of Indonesia became saddled with a legacy of Suharto-era debts. Odious Debts Online January 13/2008

World Bank too close to Kenyan President?
Has Nairobi's World Bank country director lost his objectivity? Odious Debts Online January 9/2008

German Jubilee movement slams World Bank odious debts paper as 'biased' and 'misleading'
The first detailed treatment of the Bank's recent paper, shows that by ignoring odious debt concepts and references, the Bank has managed to paint a 'pitiful picture' of apparently contradictory odious debt definitions. Odious Debts Online December 28/2007

Review: Iraq's debt relief – procedure and potential implications for international debt relief by Martin Weiss / Reviewed by Patricia Adams
Weiss argument "puzzling." Odious Debts Online December 28/2007

Support grows for landmark debt cancellation bill
The Jubilee Act for Responsible Lending and Expanded Debt Cancellation seeks to dissolve the debts of 67 of the world's poorest countries owed to the United States, other official creditors in the Paris Club, the IMF, World Bank and other IFIs. Odious Debts Online December 28/2007

World bankruptcy
One "backroom putsch" after another. Odious Debts Online December 28/2007

First the mutiny, then the silver
New World Bank head rakes in a windfall of support from rich countries; will he dare to rock the corruption boat, given the Wolfowitz example? Odious Debts Online December 19/2007

Strike-out interest payments on questionable loans: Philippine debt watchdog
Debt watchdog wants $512.57 million worth of foreign debt-related funds reallocated to social services. Odious Debts Online December 17/2007

British public spending head exploits public purse
Britain's head of public spending accused of running up lavish bills, at taxpayers' expense. Odious Debts Online December 1/2007

World Bank justice
All that mattered to Mr. Wolfowitz's accusers was to be rid of him, whatever the pretext or methods. Wall Street Journal Opinion May 18/2007

Wolfowitz resigns, ending long fight at World Bank by Steven R. Weisman
The resignation, effective June 30, brings a dramatic conclusion to two days of negotiations between Mr. Wolfowitz and the bank board after weeks of turmoil. New York Times May 17/2007

Wolfowitz, the World Bank, and illegitimate lending by Joseph Hanlon
Although the World Bank is finally addressing corruption, President Paul Wolfowitz is doing so in a way that puts all the responsibility on the people of the borrowing country. In Wolfowitz's system, the lender carries no responsibility. The Brown Journal of World Affairs May 16/2007

World Bank jobbery
More evidence the Wolfowitz accusers chose to ignore. Wall Street Journal Opinion May 15/2007

Special report of the World Bank's ad hoc group
According to a report by the World Bank's ad hoc group, World Bank President Paul Wolfowitz did violate ethics rules in his handling of a promotion and generous pay rise for his companion. May 14/2007

Wolfowitz resign!
A blog advocating for the resignation of World Bank President Paul Wolfowitz. May 11/2007

Europeans press Wolfowitz to quit as bank chief by Steven R. Weisman
“If this is true, it’s disappointing and outrageous. What is the point of giving us time to make a submission if they have already made up their minds?” – Robert S. Bennett New York Times May 10/2007

Never mind Wolfowitz: Scrap the World Bank by George F. Will
"The bank's real mission statement is the non sequitur that makes government undertakings immortal: We were created for a reason; therefore, there must forever be a reason for us to exist." Washington Post Writers Group May 10/2007

Communication from the Executive Directors of the World Bank
Additional time has been granted the World Bank President Paul Wolfowitz to comment on the draft report of the World Bank's ad hoc committee, which was provided to him on May 6. May 9/2007

Graft fights back by Patricia Adams
World Bank staff are determined to oust Paul Wolfowitz, because his campaign against corruption threatens their overpaid jobs. National Post May 9/2007

Predatory lending by George B.N. Ayittey
The World Bank's credibility was in tatters well before Mr. Wolfowitz arrived in 2005. Indeed, Mr. Wolfowitz's anti-corruption campaign was intended to restore its credibility. The real scandal is the World Bank itself. May 4/2007

Defending Wolfowitz by Gary Weiss
"I'm having a hard time whipping myself up into a state of indignation over Paul Wolfowitz. Sorry. Could it be me? Could it be the onset of delightful weather? Or could it be that Paul Wolfowitz is being railroaded?" Forbes.com May 3/2007

World Bank rolls
Nearly 1,400 employees make more than Condi Rice. Wall Street Journal Opinion May 3/2007