World bank lending and state sovereignty: the case of Uganda

Abstract

This thesis critically examines the experiences with conditionality in World Bank lending. It questions the relevance of conditionality today and explores what types remain useful. The study draws conclusions from evolving perspectives, emphasizing the central role conditionality can play when tailored to specific contexts. Examples and challenges, such as corruption, are analyzed, in the thesis assessing and responding to these challenges. Building upon insights from scholars, the thesis proposes a theory that accounts for the ways in which factors beyond World Bank lending influence state sovereignty. This integrated theory seeks to explain the dynamic relationship between conditionality and state sovereignty. The historical context is crucial. The evolution of state relations from the Peace of Westphalia in 1648 to the modern-day has seen shifts in the concept of sovereignty. International obligations, human rights, and globalization have challenged traditional notions of state sovereignty, impacting economic, political, and social aspects. Governance legitimacy for lending conditionality, first applied through Article IV (10) of the World Bank Agreement of Association, is explored. The thesis acknowledges substantial controversy surrounding World Bank lending, highlighting the need for new approaches. In conclusion, this thesis does not aim to examine broader subjects like human rights or international law. Instead, it focuses on the interaction between World Bank lending, loan conditionality and state sovereignty, offering an articulate account of the effects on borrower states. The research was conducted using secondary data, employing literature review. Peer-reviewed journals, books, research reports, conference papers, and legal frameworks were used.