SOVEREIGN DEBT AND THE ILLUSION OF SUSTAINABLE DEVELOPMENT IN AFRICA: COLONIAL ROOTS AND NEO-COLONIAL DEBT TRAPS
Date
2025-04-15
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Abstract
This thesis critically examines the intersection of sovereign debt and sustainable development in Africa, focusing on how the global financial and debt architecture perpetuates colonial and neo-colonial inequalities. Through a theoretical framework grounded in TWAIL, the study reveals how Africa's unsustainable debt burdens stem from historical legacies of imperialism and the structural imbalances of contemporary global debt governance systems. The research explores the colonial origins of sovereign debt and its evolution into a neo-colonial tool for economic subjugation. It emphasizes how institutions like the IMF, the World Bank, and private creditors, through policies such as loan conditionalities, debt restructuring, balance-of-payment surveillance, surcharges, and the quota system, undermine the development agendas of African states. These policies often prioritize creditors' interests over human rights, economic equality, and environmental sustainability, creating a paradox where debt financing intended to support development instead exacerbates poverty and inequality.
Description
Focusing on Kenya as a case study, the thesis highlights how exogenous factors – such as loan conditionalities, debt restructuring, balance-of-payment surveillance, surcharges, and the quota system – and endogenous factors, including corruption and weak fiscal management, contribute to debt crises. The analysis demonstrates that while internal governance issues aggravate the problem, they are secondary to the overarching influence of the global debt architecture. The research underscores the implications of debt servicing on Africa's ability to achieve its Sustainable Development Goals (SDGs), particularly in addressing climate change, poverty alleviation, and human rights. Finally, this thesis, while integrating legal, economic, political, and historical perspectives, contends that the reform of international debt governance is essential for Africa’s sustainable development, arguing for the recognition of African voices in reshaping the debt architecture. It proposes comprehensive reforms to the global debt and financial governance system, advocating for equitable participation by African nations, debt transparency, and the prioritization of sustainable development. Ultimately, this study contributes to the discourse on fiscal justice, sovereignty, and sustainable development in Africa by situating debt within the broader context of historical and ongoing global inequities.
Keywords
Sovereign debt Management, Sustainable Development, Africa, Neocolonialism, Global Debt Architecture