A Political Economy of Sovereign Debt: Perspectives on Alternative Paradigms

My IP&E independent study takes motivation from the problems and contradictions inherent in the neoliberal sovereign lending paradigm. The international community recognizes what it has termed "underdevelopment" as a global... [ view full abstract ]

My IP&E independent study takes motivation from the problems and contradictions inherent in the neoliberal sovereign lending paradigm. The international community recognizes what it has termed "underdevelopment" as a global problem in part because of a common belief in the human right to a decent standard of living. We address underdevelopment through the extension of debt, which is intended to boost economic growth and government financial capacity in developing countries. Literature suggests, however, that sovereign debt has not proven an effective means of stimulating growth, and instead has led to such problematic outcomes as debt crises, subtractionality, dependency, austerity, and moral hazard. Despite such findings, debt persists as a response to both underdevelopment and the question of how to effectively finance governments more broadly. A Liberal faith in the market has legitimized and perpetuated the use of debt at the state level, but together these inherent problems suggest that the neoliberal paradigm cannot foster a more prosperous, equal, or just world. In my study, I rethink sovereign debt, leveraging feminist and other critical theories to explore possibilities for paradigmatic shifts and viable alternatives for addressing issues of political and economic underdevelopment.