Mon Feb 03 10:40:00 UTC 2025: ## Latin American Debt: A Moral History Challenges Conventional Wisdom
**New York, February 2, 2025** – A new book, *Odious Debt: Bankruptcy, International Law, and the Making of Latin America*, challenges the conventional understanding of Latin American debt crises. Author Edward Jones Corredera, a Senior Research Fellow at the Max Planck Institute, argues that centuries of debt and default are not simply a matter of irresponsible spending but are deeply intertwined with the moral and political construction of Latin American nations and international law itself.
Corredera’s research, focusing on early modern Spain and modern Mexico, Colombia, and Argentina, reveals a clash between differing conceptions of debt. He contrasts the “contract-based” view prevalent in the Protestant world with a more community-oriented understanding rooted in Catholic traditions in Latin America, where “deber” (to owe) encompasses moral obligations beyond mere financial transactions. This fundamental difference shaped how Latin American nations negotiated their independence and subsequent relations with global powers.
The book highlights the concept of “odious debt,” debts incurred by illegitimate regimes, arguing that such debts should not bind successor governments. Corredera traces the origins of this concept to 19th-century Latin America, where jurists challenged the use of force to collect debts, arguing that such actions undermined the very sanctity of contracts and hindered economic development. He demonstrates how Latin American jurists developed a powerful critique of international law, seeing it as a tool of imperialism rather than a guarantor of justice.
The author uses case studies of Mexico, Colombia, and Argentina to illustrate varied responses to debt crises, including the Mexican Revolution’s impact on defining national sovereignty and the role of figures like Luis María Drago in shaping international legal norms against coercive debt collection. Corredera also examines the hypocrisy of European powers who abolished debtors’ prisons domestically while employing coercive measures against Latin American nations.
Corredera’s work suggests that understanding the history of debt and bankruptcy in Latin America is crucial for addressing contemporary global financial issues. By exploring the interplay of religion, law, and power, the book offers a fresh perspective on the complexities of sovereign debt, reparations, and the pursuit of a just world economy. It further suggests that the seemingly intractable problems of today require us to revisit the historical roots of our concepts of debt and bankruptcy to find workable solutions.
First Piper 