Authors: Debayan Sen

Shreyas Vyas
University: Hidayatullah National Law University, India
Title: Analytical Study on the Evolving facets of Democracy and Sovereignty in the light of
Sovereign Debt
Abstract:
Democracy as a concept has been evolving since 15 th century and can be trace back to
promulgation of the Magna Carta rights. The very essence of democracy means participation of
the people, by the people and for the people in running a sovereign and self-reliable government.
Democratic ideals are inherent in a nations soul and it remains unaltered at any regime that is
wielding the power of administrative control. The ideal of sovereignty are entwine in the core of
a Democratic Society and with the passage of time becomes the identity of a Nation. Autonomy
on the decisions of a country is imperative to the honor of a nation, which is the very nucleus of
Sovereignty. With the advent of the 20th century, there has been a distinct addition to the concept
of Sovereignty i.e. with the people .Decisions relating to its economy and foreign relations have
historically lied in the internal functions of a nation. It indicates a personal space for a nation that
no other country can intervene in its internal affairs. However, in recent past, Globalization has
invaded the very core of the ideals of Democracy and Sovereignty. The past two decades, it
seems that the basic concept of Sovereignty and Democracy are evolving dynamically into
unchartered territories because in this 21st century no country can live or survive in isolation.
History teaches us that countries who live in isolation cannot survive for a longer period. Nations
are not only bound to help each other but also have to survive in an internationally conducive
cohabitation. Looking at the present global financial crisis and the euro zone crisis, this is acting
as a churning point for both democracy and sovereignty as a concept. The Researchers would be
emphasizing on the very aspect of these two concepts in the light of the Euro Zone crisis and
how these concepts germinating from traditional ideals due to acute financial crunch. The global
financial crisis and euro zone crisis are creating a web of distinct economic situations that are
intertwining the governments of number of nations and its people. In this research paper, the
Researchers will analyze theories of democracy and sovereignty which has come to the cross
roads in the present century due to this crisis. The international politics is on verge of getting into
the Financial Feudalism as many of the countries are been indirectly sold out to superior
Economic powers. Nations are loaded with enormous amount of debt, which creates an
imbalance and thereby strangles overall health of a nation. Researchers will stress on the point
that present evolution of mutual symbiotic relationship that is beneficial for the nations if
superior powers believe the need to check their undue bargaining and exploitation habits.. The
researchers would also ponder on thought on whether money is becoming the new sword of
purchasing the democracy and sovereignty of a nation. Financial Aid might become the currency

of the powerful nations to buy out debt ridden countries, thus in this process diluting core ideals
of Democracy and Sovereignty. Therefore, the researchers will also question the neo
imperialistic tool, which in itself is buying out the dignity of a country. In conclusion, of this
research paper, the researchers would try to give solution to this crisis by going into very root
cause of the problem, which according to researchers could be imbalance of social needs and
economic needs and resulting into the shattering of the traditional democratic institutions in the
light of the ongoing financial drama.

Keywords: Democracy, Sovereignty, Concepts, globalization, crossroads, Euro-zone crisis,

sovereign debt, financial feudalism.