What is the Calvo Doctrine?

In international law, the Calvo Doctrine is a policy that guides or regulates the jurisdiction of governments in international disputes and treaties. Notably, the Calvo Doctrine or Calvo Clause prohibits the use of force in collection of debts and directs that the country in which an investment is located holds the jurisdiction in settling the dispute.

How does the Calvo Doctrine Work? 

The Calvo Doctrine was developed in 1868 by Carlos Calvo, a legal scholar and diplomat from Argentina. In his book titled the International Law of Europe and America published in 1868, Carlos Calvo set out some international rules guiding the collection of indemnities and the authority that countries can exercise over aliens in international disputes. 

According to a Calvo clause, an alien that signs a contract containing this clause agrees to the jurisdiction of a specific government.

 After Carlos Calvo advanced the Calvo Doctrine in 1868, the doctrine was further articulated by Luis Mara Drago, the Argentine foreign minister in 1902. This articulation birthed the Drago Doctrine, stating that public debt cannot occasion armed intervention nor even the actual occupation of the territory of American nations.