61. Sovereign Wealth and Sovereign Power: The Strategic Consequences of American Indebtedness
- Author:
- Brad W. Setser
- Publication Date:
- 09-2008
- Content Type:
- Working Paper
- Institution:
- Council on Foreign Relations
- Abstract:
- In the 1870s, the scope of Great Britain's financial empire exceeded the scope of its political empire. Dependence on British investors sometimes was a precursor, though, to informal—or even formal— political control. When Egypt's khedive needed to raise cash to cover his personal debt to private British banks, he sold his large personal stake in the Suez Canal to the British state. Egypt's ruler did little better managing Egypt's public debt: difficulties making payments led Britain and France to assume control over Egypt's treasury and, by 1882, to full British political control.
- Topic:
- Economics, Government, International Political Economy, and International Trade and Finance
- Political Geography:
- Britain, United States, America, and Egypt