Do States Practice What They Preach or Breach What They Practice? : Fixing the Sovereign Bond Issue (and the Issuer)

This paper explores whether a state's dual role – wearing these two ‘hats' of a regulator (preacher) and a (practicing) party – has ostensibly demonstrated an inconsistent and imbalanced approach. It asks whether states really practice what they preach. This paper then addresses whether the balance of risks between the state (issuer) and a national (bondholder) could be adjusted. If the bargaining power that exists between the individual investor and the state does not facilitate changes to the contractual terms that best manage these risks, it questions whether that imbalance could otherwise be rectified, such as through a multilateral formal legal mechanism