Bringing an 'emerging market' under the aegis of the British Empire was the surest way to remove political risk from investors' concerns.51 Even those outside the Empire risked a visit from a gunboat if they defaulted, as Venezuela discovered in 1902, when a joint naval expedition by Britain, Germany and Italy temporarily blockaded the country's ports. The United States was especially energetic {and effective} in protecting bondholders' interests in Central America and the Caribbean.52
( Niall Ferguson )
[ The Ascent of Money: A ]
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