Sovereign Debt and the New Global Economy: An analysis of Russian and Polish debt treatments in the post-Soviet era

Abstract

Critics have alleged that the process of negotiating sovereign debt relief is unduly politicized and favors a global capitalist elite over national and democratic interests. This study evaluates the legitimacy of these criticisms by analyzing the cases of Russia and Poland in the six year period after the end of state communism in the 1990s. An alternate hypothesis, that the words of state leaders both in public and in meetings with influential global capitalist agencies determine the outcomes of key negotiations, is advanced through a careful analysis of video recordings of key speeches as well as other sources. A comparison of these cases is used to develop insights into the political role of transnational financial institutions and global capitalism.