Impact of the Global Financial Crisis
Increased international coordination of financial regulation
Nationalization of some economic sectors
Decrease in foreign direct investment
Unrest from people on the margins
Resurgence of desire from southern hemisphere countries to reform the international economic order
LDC’s demand payback
Shift away from World Bank to China as a lender to LDC’s. China’s loan terms don’t have the strings attached that WB loans do.
Rise in Asian values
Increased cooperation between business, government, and finance. In Korea this is called Chaebol.
What’s law got to do with it?
International Economic Law and Development – Professor Head
I. General Background
I(A) The International Legal System
1. There are four eras of international law: Greeks, Romans, the Church (feudalism), and today the nation state (Westphalian)
Before 500 B.C. – Greeks
500 B.C. – 476 A.D. – Romans
476 A.D – 1400 – Feudalism
1400 – 2000 – Nation states
Only becomes firmly established after 1648 and the Peace of Westphalia.
This perspective is highly Eurocentric
2. Why is 1648 important?
2 treaties settled the 30 years war. It established property rights, and established the church as a source of law.
3. Sources of Modern International Law
Why is modern international law founded in Christianity?
Justinian from Constantinople in 532 issued a new set of laws to recapture the glory of Rome. This new Digest looked at classical Roman scholars through the lens of Christianity.
This Digest was lost and then found in northern Italy around 1000. This serves as the foundation for the teaching of law in northern Italy and then through all of Europe.
In what ways is modern international law founded in Capitalism?
The profit motive is central to capitalism as an ideology. Modern international law frequently tries to lift all boats.
Grotius’ two-part formula for Int’l law:
(1) Jus Gentium Voluntarium
Voluntary submission of some sovereignty to international law
Praetor, 3rd Century B.C.
Urbanus – applied in the civil law or “jus civilis”
Peregrinus – applied the “jus gentium.” This has stayed with us to become part of Grotius’ two-part formula.
(2) Natural Law
The higher natural law that under Grotius was reflective of Christian values.
Secular natural law is frequently visible in treaty and customary la
ressive use of force is illegal. Force can only be used for self defense.
World Bank and IMF: Were actual legal entities with international legal personality.
5. What three events in the summer of 1945 were central to modern international legal relations?
June, creation of UN
August, the bombs were dropped
There was a need to arrest the further development of weapons of mass destruction
To prosecute the Nazi leaders imposed personal criminal liability for government officials acting within their formal authority. This was the first time individuals were held personally liable for government action. Up until this time, individuals weren’t subject to international law. This leads in the future to the idea of international rights for the individual in international law (this is outside the influence of the state). This means an individual can sue his own state on grounds that the state has violated internationally protected human rights of the individual.