When Nations Can't Default: A History of War Reparations and Sovereign Debt

The book "When Nations Can't Default" explores the history of war reparations and their consequences, combining history, political economy, and open economy macroeconomics. It argues that reparations are unique sovereign debt due to their enforcement by military and political force, making them a senior liability of the state.

Format: Hardback
Length: 200 pages
Publication date: 02 November 2023
Publisher: Cambridge University Press

War reparations have been a significant and contentious issue throughout history, with both large and small payments being made and sometimes defaulted on. The consequences of these transfers have been widely debated, with economists such as John Maynard Keynes arguing against German reparations in his book "The Economic Consequences of the Peace." Since then, the effects of war reparations have continued to be a topic of discussion, particularly in the context of international relations.

"When Nations Can't Default" is a book that explores the history of war reparations and their consequences by combining history, political economy, and open economy macroeconomics. The book delves into often forgotten episodes and tells the story of how reparations were paid, both in full and in part, and when they were not.

One of the key arguments made in the book is that war reparations are unique among sovereign debt in that repayment is enforced by military and political force. This makes them a senior liability of the state, as the government is responsible for ensuring that these payments are made even if it means using coercion or other means.

The book analyses fifteen episodes of war reparations, including those imposed on Germany after World War I, Japan after World War II, and more recently, on countries such as Iraq and Libya. Through these case studies, the book demonstrates that reparations can have both positive and negative consequences for the countries that are required to make them.

On the positive side, war reparations can help to rebuild and stabilize a country that has been devastated by war. They can provide funding for infrastructure development, social welfare programs, and other initiatives that can help to promote economic growth and reduce poverty. Additionally, war reparations can serve as a symbol of justice and accountability for the actions of a country that has committed war crimes or violated international law.

On the negative side, war reparations can be a source of tension and conflict between countries. They can create economic hardships for the country that is required to make the payments, particularly if they are large and difficult to repay. Additionally, war reparations can be used as a political tool by other countries to exert influence or gain concessions from the country that is making the payments.

Overall, "When Nations Can't Default" provides a comprehensive and insightful analysis of the history and consequences of war reparations. The book sheds light on the complex and often contentious issues surrounding these transfers, and it offers valuable insights into the ways in which countries can navigate the challenges associated with them. Whether you are an economist, historian, or simply interested in international relations, this book is a must-read for anyone seeking to understand the complex and multifaceted nature of war reparations.

Weight: 514g
Dimension: 159 x 236 x 23 (mm)
ISBN-13: 9781009343923