International Financial Institutions

The Mozambique scandal shows how much damage irresponsible lending can cause.  A citizen or a class of citizens injured by an irresponsible loan should be able to pursue a civil suit for damages against the responsible government officials and lender or lenders:  i) in the country where one or more of the lenders is headquartered, ii) the country where one or more of the branches or subsidiaries that extended or approved the loan is located, or iii) in any country where the lender or lenders have a substantial presence.

We recognise that the current proposal is limited in resolving the longer-term debt burden of developing countries. The stay of enforcement does not introduce any changes in the substantive obligations contracted by the parties. Thus, the standstill will only temporarily suspend the execution and enforcement of eligible financial obligations during the designated period. Meanwhile, interest on the principal will continue to accrue. The proposal is also meant to be used as a ‘shield’ rather than a ‘sword’, i.e. the stay will only be triggered as a defence by the sovereign debtor in the event of a claim against it by a private creditor.

The importance of law in development discourse, especially in times of global crises as captured under Sustainable Development Goal 16 is a critical factor in establishing and maintaining the rule of law by empowering the most vulnerable persons and groups in society to exercise their fundamental human rights against unfettered legal regimes and political leadership.

Financial institutions should focus on the positive opportunities and learning experiences from this pandemic and plan how they will help their member states adjust to the effects of COVID-19 and attain sustainable development thereafter. This step will be in line with the World Bank’s advice on planning for the economic recovery from COVID-19, in the bid for nations to restart their economic engines and build back stronger and better in the short term and longer term.

LDCs are inadequately equipped to manage the socio-economic impacts of the Covid-19 pandemic; these countries have not even effectively curbed environmental pollution yet. The sustainable development goals strategies did not envisage such a pandemic and this is causing many governments to lose sight of how to manage their economic regressions. The national governments and international community therefore have to be more vigilant and proactive in ensuring that the battered global economy stabilizes after the pandemic.

This post analyzes the potential impact of COVID-19 on the African continent given systemic healthcare vulnerabilities and the need for contextualized containment strategies. It examines the historical role of international financial institutions in limiting domestic health spending and capacity. This post also delves into re-conceptualizing responsibility for pandemic and epidemic diseases.

On the 24th of March 2020, the African Export-Import Bank (Afreximbank) announced a US$3 billion facility to help its member countries weather the economic and health impacts of Covid-19. In this interview, Prof Ben Oramah, President Afreximbank, discusses this pandemic facility, the African Continental Free Trade Area, (AfCFTA) and more.

Welcome to this symposium on COVID-19 and International Economic Law in the Global South. The essays in this symposium came from Africa, Asia, Europe, the Middle East, the Caribbean, North America and Latin America. This symposium will last for a full four weeks because of the large number of good quality submissions we accepted.

To finalise our International Women’s Day symposium on scholarship by women, this post highlights some women working on International Economic Law (IEL) that the editorial team put together in the last couple of days. This post is therefore by no means intended to be exhaustive. We encourage our readers to add to our list. Next year with more time, we hope to have an even more extensive list of women working in IEL.

Over the last decade, and especially in the mining sector, African state actors have begun to denounce unequal mining contracts, and are increasingly reviewing mining contracts accordingly. While African host states are seemingly taking it upon themselves to remedy real and perceived imbalances vis-à-vis investors in their mining contracts, a key question remains what structural reasons have led to such imbalances in the first place, and whose responsibility it is to address these structural issues: host states, investors, home states, international financial institutions, or all the above? This brief discussion contextualizes how responsibilities to redress unequal mining contracts may be shared.