The International Convention on the Prevention of Odious Agreements: A Human Rights-Based Mechanism to Avoid Odious Debts

Abstract

AbstractThere is a lively discussion as to whether debts incurred by despotic regimes and used to the detriment of the population are legally valid. This article gives a brief introduction to the concept of so-called odious debts and argues that a legal solution is not only desirable, but feasible. Subsequently, international human rights are identified as the missing link between the behaviour of the debtor state and the assessment of individual debts. Consequently, a human rights-based mechanism for the prevention of odious agreements is developed, based on an international convention annexed to this article. The convention provides that a state is classified as odious debts-prone if it is responsible for serious and systematic violations of human rights or international humanitarian law, or if its public sector is governed by severe and systemic corruption. Agreements concluded with an odious debts-prone state are void, unless the agreement complies with principles of responsible contracting as developed in this article. Finally, the scope of application of the convention and possible state parties are specified.