With rigorous economic research and practical policy solutions, we focus on the issues and institutions that are critical to global development. Explore our core themes and topics to learn more about our work.
In timely and incisive analysis, our experts parse the latest development news and devise practical solutions to new and emerging challenges. Our events convene the top thinkers and doers in global development.
When an illegitimate regime contracts with foreign actors and, in essence, mortgages its country’s future, successor regimes and innocent citizens are expected to pay back that mortgage. This all-too-common occurrence saddles citizens with unjust contracts from which they did not benefit and burdens legitimate successor governments with repayment. A declaration of contract non-transferability would put creditors and investors on notice that any future contracts to a regime would not be considered binding on successor governments. In 2012, CGD explored how this approach could be applied in Syria and other fragile states. Successive US administrations have considered the idea.
Since the coup ousting Honduran president Manuel Zelaya last June, the international community has responded with strong words and a mix of mostly mild actions. The Organization of American States (OAS) unanimously voted to suspend Honduras when the de facto regime ignored its demand for the immediate reinstatement of Zelaya, and the UN General Assembly has also adopted a resolution denouncing the coup. The United States and European Union have halted some forms of non-humanitarian aid. But despite some calls for action , the United States and other major trade partners have yet to adopt trade sanctions or to freeze the coup leaders' assets.