Article by Univ.-Prof. Jonas Bunte, Ph.D.

This fall, I am excited to teach a new course as part of our “Politics and Money” specialization: Politics of Debt. The course investigates how politics shape national debt—and how debt, in turn, shapes politics. Sovereign debt may sound like a technical issue, but it lies at the heart of some of today’s most pressing global challenges: climate change, geopolitical conflict, inequality, and development. In this course, students will examine how borrowing decisions are made, who influences them, and the consequences that follow.

We examine questions such as: Why do some countries enact strict legal limits on debt, while others borrow freely? Why do some governments default, while others impose painful austerity measures? How do powerful lenders—such as China or the United States—use loans to expand their political influence?  We also analyze the conditions under which debt relief is granted, and when it actually helps. Can loans be used to fight poverty and climate change? From China’s Belt and Road Initiative to the politics of IMF conditionality, students will engage with real-world case studies that reveal how debt is used as a tool of power and/or development.

Politics of Debt is one of four courses in the “Politics and Money” specialization, a program designed to help students connect economic and political developments at both the national and global levels. In this specialization, students don’t just learn to think critically—they also build practical communication skills and develop personal resilience. By linking theory with practice, and global issues with everyday life in Austria, the course helps students understand how issues like bank bailouts, foreign investment, and sanctions affect their future careers, their taxes, and even their tuition costs.

For students passionate about international affairs, economic justice, or public policy, this course offers a unique lens on how the global financial system both constrains and enables political decision-making. It’s also an excellent foundation for Master’s programs or careers in international organizations, finance, government, or NGOs. I look forward to engaging with a new cohort of students as we explore how debt shapes our world—and what we can do about it.

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