Financial Crisis, International Relations and International Economic Laws
The 2008 Financial Crisis has affected nearly every aspect of every economy in the world in some way or another. In a short span of time, its causes and consequences have been analyzed in great detail. However, while plenty has been written about its impact on domestic systems, its impact on international economic law is yet to receive the same kind of attention. This paper discusses the impact of the Crisis on the larger framework of international relations. It then examines the effect these changes have on key ongoing debates in international economic law particularly the much delayed Doha Development Agenda and the regulation of Sovereign Wealth Funds.
The Dawn of a New, New International Economic Order
I INTRODUCTION In the aftermath of the Second World War, colonies, protectorates, and other entities under European and American domination gained independence, and the countries that comprise what became known as the Third World emerged. (1) The Third World as a political concept, however, truly came of age during the 1970s, when these nations demanded some semblance of economic and political parity and justice. Even as the notion of "development" materialized and gained ground, (2) it was apparent that the international political, legal, and economic system was unmistakably asymmetrical and weighted against their interests. The mostly colored peoples who comprise the Third World citizenry were mired in poverty and powerlessness, and the international political and legal system seemed to present few options to alter the prevailing paradigm. Accordingly, Third World nations and peoples demanded a New International Economic Order (NIEO), (3) endorsed by the United Nations in 1974, which would provide them, inter alia, permanent sovereignty over their natural resources and more control over their economic destiny. (4) Today the world is being presented with a fresh "new international economic order." The crisis of U.S.-led, market-driven capitalism has resulted in a financial meltdown in the principal Northern Tier (5) nations who, along with their corporate entities, control the world economy. (6) The system is theoretically and perhaps literally bankrupt; emerging-market Southern Tier economies, having been drawn into this quagmire, are being asked to step forward and assist in rescuing it. (7) These Southern Tier, middle-income nations are, in turn, predictably demanding a larger role in international economic governance. Thus we are witnessing the creation of a very new international economic order that is led, at least in part, by people of color and nations that were themselves formerly subjected to colonialism and other forms of economic or political domination. The previously subjugated are now sitting at the table with their former oppressors and are taking an active role in reshaping a system that has often meant prosperity for the few and poverty for the many. Indeed, while the nature of inequality has shifted and changed, poverty has remained rampant and the current economic quandary is likely to deepen this profound inequity. (8) This article will explore the contours of the original call for economic parity and its aftermath, which in due course resulted in a tightening of the legal and economic labyrinth that continues to strangle low-income nations. Any notion of equality, justice, or responsibility for the poverty of former colonies was utterly rejected, and in its place was conditionality, structural adjustment, and eventually, the Washington Consensus, all of which reflect the same conservative, market-driven ideals that have led to the global financial meltdown. Some Third World nations have been climbing the industrialization ladder, however, and have joined the ranks of middle-income nations, albeit not pursuant to the market-driven policies that are keeping low-income states in misery. (9) Recent successful modernization efforts have changed the global economic equation, and some type of realignment has long been on the horizon; still, few could have anticipated that the shift would come quite so suddenly. (10) The collapse of the western financial system seems to be a catalyst propelling this repositioning forward at a tremendous pace. Its ultimate results are unknowable, but it does present intriguing possibilities for both the poorest and richest nations, as well as for the impoverished inhabitants of all nations. Low-income nations may find themselves sitting across the table from new partners that are posing very different questions, imposing different conditions, and seeking quite different responses. Affluent nations may find themselves in a similar position, with the demise of an economic system dominated by any single nation. …
Constitutionalizing Economic Globalization: Investment Rules and Democracy's Promise
Introduction: the new constitutional order Part I. Rules: 1. The investment rules regime 2. The takings rule 3. Investment rules in action Part II. Projects: 4. Health and the environment 5. Land and empowerment 6. Privatization and democratization Part III. Resistance: 7. Citizenship 8. The rule of law 9. A world of possibilities.