This study critically examines the impact of international sanctions on bureaucratic quality in 74 developing countries from 1990 to 2020, highlighting how global governance mechanisms influence domestic institutional capacities. By focusing on the interaction between sanctions and economic crises, the research provides fresh empirical evidence on how external political pressures can inadvertently hinder development trajectories in the Global South. Utilizing a fixed-effect regression methodology with robust controls and addressing endogeneity concerns, the findings reveal that international sanctions—especially multilateral ones from the EU and UN—significantly deteriorate bureaucratic quality, particularly during economic crises. This deterioration undermines state capacity, exacerbates inequalities, and challenges the effectiveness and fairness of sanctions as tools of global governance. The study contributes to debates on global development by demonstrating how sanctions can reinforce global power asymmetries and produce divergent development outcomes. It urges a re-evaluation of sanctions within international policy, advocating for more equitable and context-sensitive approaches that prioritize the institutional integrity and development needs of vulnerable nations. The research underscores the importance of aligning global governance mechanisms with ethical principles and development goals, promoting dialogue and collaboration over punitive measures to achieve a more inclusive and sustainable global development paradigm.