Legal Definitions - Drago doctrine

The Drago doctrine is a principle proposed by Argentine Foreign Minister Luis Drago in 1902. It asserts that no public debt should be collected from a sovereign state by force or through the occupation of American territory by a foreign power. A modified version of this doctrine was later adopted at the Hague Conference of 1907.

The Drago doctrine is a principle in international law asserting that foreign powers should not use military force or occupy territory to collect public debts from sovereign nations, particularly those in the Americas.

This doctrine originated in 1902 with Luis Drago, Argentina's Minister of Foreign Affairs. He proposed it in response to European nations using naval blockades and other coercive measures against Venezuela to recover unpaid loans. The core idea is to protect the sovereignty of nations, especially smaller ones, from being undermined by powerful creditors resorting to military intervention for financial reasons. A modified version of this doctrine was later adopted at the Hague Conference of 1907, reinforcing the idea that debt collection should primarily be pursued through peaceful means.

Here are some examples illustrating the Drago doctrine:

• Historical Scenario: Imagine a situation in the early 20th century where "European Nation X" had loaned a substantial amount of money to "Latin American Nation Y." If Nation Y struggled to repay the debt and Nation X responded by sending its warships to blockade Nation Y's ports, seizing its customs houses, or even landing troops to ensure repayment, the Drago doctrine would strongly condemn these actions. It would argue that such military coercion for debt collection is an unacceptable infringement on Nation Y's sovereignty and territorial integrity.

  This example illustrates the Drago doctrine by showing how it directly opposes the use of military force, such as naval blockades or territorial occupation, by a creditor nation to compel a debtor nation to pay its public debts.

• Modern Hypothetical: Consider a small island nation in the Caribbean that defaults on a large loan from a powerful, industrialized country. If the creditor country were to threaten to deploy its military forces to take control of the island's main airport or seize its national oil reserves as a means of forcing repayment, the Drago doctrine would be invoked. It would argue that such a threat, even if not fully executed, constitutes an illegitimate use of force or coercion against a sovereign state for debt recovery.

  This example demonstrates the Drago doctrine's relevance by highlighting its opposition to threats of military intervention or the seizure of national assets by force as a method for collecting international debts, emphasizing the need for peaceful resolution.