Hard, Soft, and Embedded: Implementing Principles on Promoting Responsible Sovereign Lending and Borrowing
Oxford University Press, Forthcoming
39 Pages Posted: 17 Apr 2012 Last revised: 3 Oct 2016
Date Written: November 20, 2012
This paper, prepared for UNCTAD’s initiative on responsible sovereign lending and borrowing, considers concrete strategies for implementing the Principles. It draws on studies in soft law and new governance, and on the recent experience in promoting best practices in international finance, including project finance, extraction revenue management, foreign aid, sovereign investment, and sovereign borrowing in the capital markets. It recommends maintaining the current non-binding character of the Principles, while embedding implementation in multi-stakeholder arrangements for ongoing disclosure, assessment, interpretation, and adaptation. This strategy has the best chance of changing behavior in sovereign lending and borrowing by creating constituencies for implementation and sustained compliance.
Keywords: sovereign debt, soft law, new governance, international finance, international financial regulation
JEL Classification: F34, H63, K23, K33
Suggested Citation: Suggested Citation