IDEAS home Printed from https://ideas.repec.org/a/oup/jafrec/v33y2024isupplement_2pii62-ii77..html
   My bibliography  Save this article

A New Conceptual Framework for African Sovereign Debt: Finding an Optimal Outcome that Addresses Five Challenges

Author

Listed:
  • Daniel Bradlow

Abstract

The current arrangements through which African sovereigns raise and manage the external finance for sustainable and inclusive development in their countries are functioning sub-optimally. This troubling situation suggests that Africa needs a new approach to managing its sovereign debt and to restructuring the debt when servicing it becomes too burdensome. This paper argues that Africa is currently facing five challenges in regard to its sovereign debt and that addressing them requires a new conceptual framework that facilitates reaching an Optimal Outcome. This is defined as an outcome that, taking into account the circumstances in which the sovereign debtor and its creditors are negotiating their transaction and their respective rights, obligations and responsibilities, offers each of them the best possible mix of economic, financial, environmental, social, human rights and governance benefits.To make this case, the paper will focus on the case of sovereign debt restructurings. These transactions most clearly demonstrate the complexities and the challenges involved in reaching an Optimal Outcome in sovereign debt transactions. The paper is divided into 3 sections. The first section focuses on the five challenges that African countries are facing in managing and, when necessary, restructuring their sovereign debts. The second proposes eight principles, the DOVE (Debts of Vulnerable Economies) Fund Principles, that together offer a new conceptual framework for negotiating and drafting both new and restructured sovereign debt agreements. This new framework will help the sovereign and its creditors reach an Optimal Outcome. The third section draws some conclusions.

Suggested Citation

  • Daniel Bradlow, 2024. "A New Conceptual Framework for African Sovereign Debt: Finding an Optimal Outcome that Addresses Five Challenges," Journal of African Economies, Centre for the Study of African Economies, vol. 33(Supplemen), pages 62-77.
  • Handle: RePEc:oup:jafrec:v:33:y:2024:i:supplement_2:p:ii62-ii77.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/jae/ejae023
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    optimal outcomes; sovereign debt; African debt; sustainable finance; responsible sovereign creditorsJEL classification: F34; F63; K33; K38;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • K38 - Law and Economics - - Other Substantive Areas of Law - - - Human Rights Law; Gender Law; Animal Rights Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jafrec:v:33:y:2024:i:supplement_2:p:ii62-ii77.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/csaoxuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.