Licence To Loot: The Failure of Constitutionalism in the Management of Sovereign Debt in Zambia

Abstract

Zambia reached the HIPC completion point in 2005 and had its external debt significantly reduced. The government was cautious to accumulate unsustainable public debt. However, in 2011, a new government was elected into office and has proved less cautious and has accumulated public debt to crisis proportions, under the pretext of infrastructure development. However, evidence is growing that substantial amounts of the moneys being borrowed are being looted through corruption by government officials. This article discusses corruption in Zambia in the contraction and management of public debt. It argues that the looming debt crisis is as a result of failure of constitutionalism in Zambia. The ruling elite, under state authorised looting, have systematically looted substantial amounts of the borrowed money.