On the economics of cross-border reparation payments: The case for a bank of international reparations

Sissoko, Carolyn

Abstract

This essay considers the challenge of ensuring that international reparation payments are effective in benefiting the recipient countries of the reparations. In order to ensure that these financial flows provide long-term benefit to the recipient economies, the paper recommends the adoption of a developmental state approach to the use of the funds. The paper also considers in detail the advantages of establishing a Bank of International Reparations that serves as a trustee for the receipt and distribution of reparations, facilitates coordination of the use of reparations across countries to avoid disadvantageous forms of competition, provides investment banking services to support the use of the reparations to fund a domestically focused ‘sovereign wealth fund,’ and provides ‘public option’ commercial banking services to recipient country firms in order to foster the growth of recipient country economies. Finally, the paper finds that the most effective means of funding the reparations would be to use Special Drawing Rights (or SDRs).

• Journal Article Type: Article
• Acceptance Date: Apr 15, 2024
• Online Publication Date: Jul 10, 2024
• Publication Date: Jul 10, 2024
• Deposit Date: Apr 16, 2024
• Publicly Available Date: Jul 11, 2026
• Print ISSN: 0012-155X
• Electronic ISSN: 1467-7660
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 55
• Issue: 4
• Pages: 700-726
• DOI: https://doi.org/10.1111/dech.12842
• Public URL: https://uwe-repository.worktribe.com/output/11898294