Sovereign Debt and Social Rights-Legal Reflections on a Difficult Relationship

Abstract

The relationship between the sovereign debt of developing countries and the protection of social rights in those countries has received a lot of attention from an economic, political and moral perspective, but relatively little has been written about the legal side of this relationship. This article addresses the underlying issues from three different angles. First of all, it analyses what is and could be the role of international social rights obligations in the context of debt repayment policies and decisions, and how conflicts between social rights protection and contractual repayment obligations can and should be resolved under international law. A second issue is what the protection of social rights in national constitutions might add to the discussion, particularly with regard to the justiciability of social rights. Thirdly, it will be examined whether and how social rights can be used as a defence in proceedings for debt repayment.