The Sovereign Capability Compact: Re-Engineering Official Development Assistance for Research, Enterprise, and Sovereign AI in the Global South

Official Development Assistance (ODA) has reached an existential structural exhaustion across the Global South. Grounded in post-colonial models of indefinite resource transfer, the legacy aid architecture is colliding with severe macroeconomic compression: net ODA inflows are contracting sharply, debt service obligations are surging, and multilateral and bilateral commitments are retreating to multi-decade lows. Simultaneously, the proliferation of externally hosted foundation models and foreign hyperscale cloud infrastructure threatens to inaugurate an era of algorithmic colonization, replicating historical aid dependencies within digital and epistemic architectures. Drawing upon the author's foundational political economy treatises on intermediary rent extraction (Blockchains: Gaming and Collusion), long-horizon technological half-lives (Perpetual Five-Year Technologies in Quantum Computing), quantum-geometric monetary frameworks for Base-of-the-Pyramid (BoP) markets, and sovereign artificial intelligence (Sovereign AI in Base of the Pyramid Markets), this monograph presents a comprehensive blueprint for re-engineering development cooperation. Examining empirical evidence from Bangladesh's Economic Relations Division (ERD) through FY2025–26 and Q1 FY2026–27 alongside OECD Development Assistance Committee (DAC) Creditor Reporting System (CRS) datasets through 2026, the volume demonstrates how legacy statistical definitions, Country Programmable Aid (CPA) erosion, donor-country scholarship leakages, and out-of-scope tying loopholes systematically starve domestic research and enterprise ecosystems. In response, the monograph formulates the Sovereign Capability Compact: an institutional and financial architecture anchored by Sovereign Research and Enterprise Co-Investment Facilities (SRECFs), full-stack Sovereign AI optimization across Data (D), Compute (C), Models (M), and Governance (G), Federated University-Enterprise-Regulator Consortia, Sovereign Regulatory Sandboxes, and blockchain-verified direct country-system financing. KSCCN full-colour edition, 20 pages, with eight display equations, four tables and two schematic figures. Expanded companion volume to doi:10.5281/zenodo.23944186. Figures marked † are the author's supplied estimates, not independently verified. The views expressed are those of the author.