Sovereign blues: A case study of structure and sovereignty in the Bahamian debt-for-nature swap

Sammanfattning

Debt-for-nature swaps have been designed to address the polycrisis of high debt, climate change and biodiversity loss in developing countries by restructuring sovereign debt and directing resultant savings towards conservation. However, they are marred by multiple drawbacks including the violation of debtor nation sovereignty by international financial actors. This thesis attempts the first academic study of a swap concluded in the Bahamas in 2024 through a case study strategy that draws on informant interviews and document analysis to examine the structure of the swap, its similarity to previous swaps, and measures taken to address sovereignty violations. The study finds limited management of sovereignty concerns and increased alignment of the swap with the financialization of conservation. While the swaps remain a viable solution to the polycrisis in the current financial world order, meaningful economic aid that does not reinforce colonial dependencies will require rethinking debt restructuring and moving towards debt forgiveness.