Perspectives of Law and Justice from

Economic Globalization
• Economic law-making process in a globalizing
world

• Just economic globalization: perspectives from

PSNR, NIEO and right to development

• Labour standards and basic human rights & trade

• Rules of international trade vis-à-vis WTO

 Just economic globalization: perspectives from
PSNR, NIEO and right to development
• When states began to function as politically
independent and sovereign entities, they realised
that one of the most important attributes of state
sovereignty was economic sovereignty; otherwise,
political sovereignty was not complete.
• Asserting economic sovereignty meant having
control over the economic activities of both
juridical and natural persons conducting business
within the country, whether nationals of that
country or foreigners.
• Owing to a number of historical reasons, many states
inherited on independence a situation in which
foreign individuals or companies enjoyed certain
concessions or privileges or control over the economic
activities of the country concerned.
• When the country concerned wished to embark on a
policy of economic development, one of the first
initiatives it had to take was to consider harnessing its
natural resources in accordance with its economic
policies.
• It therefore became necessary for these states to
assert sovereignty over the natural resources of the
country and require that foreign individuals and
companies comply with the new policy adopted by
the state.
• Especially, when the number of newly independent
developing countries grew, these states sought to assert
their complete economic sovereignty by proclaiming
that they had complete and permanent sovereignty over
their natural resources–regardless of any arrangements
made by their previous colonial administrations.
• UN General Assembly passed a resolution in this effect
on Permanent Sovereignty over Natural Resources
[PSNR (1803 (XVII))] on 14 December 1962.
• The resolution had resulted from the General
Assembly’s focus on, firstly, the promotion and financing
of economic development in under-developed countries
and, secondly, in connection with the UNGA resolution
on right of peoples to self-determination. (14 December,
1960) (Resolution 1514) (XV)
• Resolution 1803 (XVII) provides that States and
international organizations shall strictly and
conscientiously respect the sovereignty of peoples
and nations over their natural wealth and
resources in accordance with the Charter of the
United Nations and the principles contained in the
resolution. These principles are set out in eight
articles concerning, inter alia, national
development, the exploration, development and
disposition of natural resources, nationalization
and expropriation, foreign investment, the sharing
of profits, and other related issues.
 Economic Justice: Perspectives from New
International Economic Order (NIEO)
• It was generally found among the countries that
along with economic progress, technological
progress has also been made in all spheres of
economic activities throughout 1950s and 60s., thus
providing a solid potential for improving the well-
being of all peoples.
• However, developing countries and newly
created/independent states started feeling that the
benefits of technological progress are not shared
equitably by all members of the international
community. The present international economic
order is in direct conflict with current developments
in international political and economic relations.
• It was felt that the interests of the developed
countries and those of the developing countries
can no longer be isolated from each other, that
there is a close interrelationship between the
prosperity of the developed countries and the
growth and development of the developing
countries, and that the prosperity of the
international community as a whole depends upon
the prosperity of its constituent parts.
• The new international economic order was
founded through a Declaration for the
Establishment of a New International Economic
Order, adopted by the United Nations General
Assembly on 1 May 1974, calling upon full respect
for the following principles:
• Sovereign equality of States, self-determination of
all peoples, inadmissibility of the acquisition of
territories by force, territorial integrity and non-
interference in the internal affairs of other States;
• The broadest co-operation of all the States
members of the international community, based
on equity, whereby the prevailing disparities in the
world may be banished and prosperity secured for
all;
• Full and effective participation on the basis of
equality of all countries in the solving of world
economic problems in the common interest of all
countries, bearing in mind the necessity to ensure
the accelerated development of all the developing
countries;
•The right of every country to adopt the economic
and social system that it deems the most
appropriate for its own development and not to
be subjected to discrimination of any kind as a
result;
•Full permanent sovereignty of every State over
its natural resources and all economic activities;
•The right of all States, territories and peoples
under foreign occupation, alien and colonial
domination or apartheid to restitution and full
compensation for the exploitation arid depletion
of, and damages to, the natural resources and all
other resources of those States, territories and
peoples;
• Regulation and supervision of the activities of
transnational corporations by taking measures in
the interest of the national economies of the
countries where such transnational corporations
operate on the basis of the full sovereignty of those
countries;
• Just and equitable relationship between the prices
of raw materials, primary commodities,
manufactured and semi-manufactured goods
exported by developing countries and the prices of
raw materials, primary commodities, manufactures,
capital goods and equipment imported by them
with the aim of bringing about sustained
improvement in their unsatisfactory terms of trade
and the expansion of the world economy;
• Charter of Economic Rights and Duties of States
(CERDS) (UNGA Resolution on Charter of Economic
Rights and Duties of States (3281 (XXIX)) (12th
December 1974):
• Sovereignty, territorial integrity and political
independence of States;
• Sovereign equality of all States;
• Non-aggression;
• Non-intervention;
• Mutual and equitable benefit;
• Peaceful coexistence;
• Equal rights and self-determination of peoples;
• Peaceful settlement of disputes;
• Remedying of injustices which have been brought
about by force and which deprive a nation of the
natural means necessary for its normal
development;
• Fulfillment in good faith of international
obligations;
• Respect for human rights and international
obligations;
• No attempt to seek hegemony and spheres of
influence;
• International co-operation for development;
• Free access to and from the sea by land-locked
countries within the framework of the above
principles.
•The Right to Economic Development: The
central elements of NIEO and CERDS were
reinforced and strengthened through a 1986 (4
December 1986) resolution of the UN General
Assembly on the right to economic
development of states.
•The right to development is an inalienable
human right by virtue of which every human
person and all peoples are entitled to
participate in, contribute to, and enjoy
economic, social, cultural and political
development, in which all human rights and
fundamental freedoms can be fully realised.
• The human right to development also implies the
full realisation of the right of peoples to self-
determination, which includes, subject to the
relevant provisions of both International
Covenants on Human Rights, the exercise of their
inalienable right to full sovereignty over all their
natural wealth and resources.
• The human person is the central subject of
development and should be the active participant
and beneficiary of the right to development.
•States have the right and the duty to formulate
appropriate national development policies that
aim at the constant improvement of the well-
being of the entire population and of all
individuals, on the basis of their active, free
and meaningful participation in development
and in the fair distribution of the benefits
resulting therefrom.
•Labour standards and basic human rights &
trade:
•The “Trade and Labour” linkage is a sensitive
and controversial issue for many countries. As
with the case of linkage of other non-trade
issues with trade (such as trade and
environment, or trade and intellectual
property), the trade and labour debate is
characterized by two conflicting strands of
thought: one favouring the inclusion of such a
linkage in trade negotiations, and the other
discrediting and denouncing any kind of
linkage.
•Consistent with such arguments a number of
governments, and various non-government
organisations, have sought to incorporate into
trade agreements certain ‘core’ labour
standards. In 1998 the International Labour
Organisation (ILO) codified these in its
‘Declaration on Fundamental Principles and
Rights at Work’. The four principles established
in the declaration are:
•a)Freedom of association and the effective
recognition of the right to collective bargaining;
•b) The elimination of all forms of forced and
compulsory labour;
•c) The effective elimination of child labour; and
•d) The elimination of discrimination in respect
of employment and occupation
 Rules of international trade vis-à-vis WTO:
•The policy objectives and their implications:
•The world trading system’s need for an
international organization
•The characteristics needed for WTO success:
•Rule-oriented system
•Dispute settlement procedures
•Credibility and legitimacy
•Transparency
•Participation
 Crucial Issues
Singapore Issues:
Transparency in government Procurement
Trade facilitation
Trade and Investment
Trade and Competition
Doha Development Agenda:
Agricultural Subsidies
Agricultural and manufacturing markets, as well
as trade-in-services (GATS) negotiations and
expanded intellectual property regulation
(TRIPS)