International Law and Geopolitical Groupings - Coursework Example

Hedley Bull’s1 concept of society in Anarchical Society is broadly based on the construction of social values which are individualistic in nature butsignificantly influence the socio political design of a state. The internal and external factors comprising of various elements, social equations, mechanism processes and empirical compulsions significantly impact socio political transformation of the state. People across globe are guided by different religious guidelines for leading a mutually complementary life within a well defined social setup for peaceful co-existence. At the same time, Huntington2 believes that the great divisions among humankind and the dominating source of conflict will be cultural. The diversity of people in different geographical locations are therefore, endowed with different set of socio cultural guidelines. This often becomes the fundamental issue in business conflicts in contemporary environment of globalization. Birnie, Boyle and Redgwell3 assert that multidimensional and multifaceted interaction of the masses with the environmental factors that have significant impact. They are capable of influencing any future recourse to the formation of a new political equation across the globe. The evolving times have increasingly seen inter-dependency of the states in the field of economic cooperation and trade practices which has been one of the major factors for globalization. The attitude and interests of the world’s different geo-political group become highly relevant factors in fast changing dynamics of the business pattern and emerging new trade practices. Thus, international law and arbitration practices have become crucial to resolve international trade disputes. In swiftly transforming equations of international business, the resolution of international commercial disputes has become imperative for the overall goodwill of the global business commitments. Inglehart and Welzel4 argue that democratization process is significantly influenced by modernization that is accompanied by socio cultural transition in the long term. It promotes political participation and democratic values within the various socio-political institutions. It has especially become true in the contemporary environment of rapid globalization where businesses are fast expanding across the globe. As such, commercial activities like sales and manufacturing, global investments, banking, etc. may result in some sort of disputes that need to be resolved through globally acceptable norms. Barnett5 asserts ‘the growing diversity of capitalism is becoming one of its global strengths’. The globalization has given a new perspective to the business which needs to look beyond the local interests and operate business on a wider platform based on common goals and universal value system. The environmental factors have significantly influenced the formation of a new political equation and intrinsically connected through the new age communication and interdependent market forces. Therefore, the commercial disputes resolution or ADR of the global business across countries become crucial for the smooth operations as the legal recourse to resolve them are complex and often time consuming. The recent years have witnessed huge thrust in the mobility of commercial activities and human resource which go beyond local interests and have embraced global values. The fast advancing technology has greatly facilitated the communication and widened the scope of businesses across geographical boundaries. Levitt6 says that technology is a powerful force which drives the world toward a converging commonality. The rapid globalization has ushered an unprecedented increase in international trade activities which have, unfortunately, also resulted in an increase of commercial disputes between the business enterprises7. Thus, of the various alternatives of dispute resolutions, international commercial arbitration is increasingly being adopted by the global business communities. Hence the business strategy and policies for expanding commercial activities in the foreign countries are being revamped to incorporate the issues and factors that may have considerable impact on the core business competencies in the global environment. The inclusion of international commercial arbitration is a very important clause in the contract between the business partners that helps to resolve any prospective or impending commercial dispute that may hinder the business activities. The clause promotes the common acceptable norms and procedures of resolving disputes that are accepted by the global business communities across the world. The international commercial arbitration is an effective mechanism as it has the backing of various state agencies and State governments. 8The clause also makes provision of international tribunals to resolve disputes as the international business may find the local laws and legal system more biased towards the local agents and business enterprises. The arbitration also provides the parties with flexibility of approach and procedure. In the international arbitration of Hassmes Insurance v Mew9, ‘if the parties to the English law contract refer to their disputes to arbitration they are entitled to assume at the least that the hearing will be conducted in private... and represents an important advantage of arbitration over the courts as a means of dispute resolution’10. In the recent times, environmental compulsions have become highly relevant issues within the business paradigms. Fast depletion of natural resources has disturbed the eco system. Dyson11 says that economic development is correlated to the fossil energy – coal, oil and natural gas. Fast depletion and pollution of natural resources has disturbed the eco system, resulting in change in global environmental conditions like global warming, increasing number of climate related natural disasters etc. Thus, 12Kyoto Protocol has emerged as one of the most critical framework that has brought together different countries under one umbrella so as to promote sustainable development. It had had formally become legal entity on 16 February, 2005. Its basic objective is to restrict greenhouse emissions by the developing and developed countries by setting targets for them. World Bank13 has also been categorical in its report for Climate change responses and has asserted that proactive participation of the community is essential to ensure adequate and effective adaptation and mitigation measures. The process of globalization has also raised the pertinent issue of corporate social responsibilities of global businesses that are working in developing economies who need to be more proactive towards the socially relevant issues. 14‘CSR, defined in terms of the responsiveness of businesses to stakeholders’ legal, ethical, social and environmental expectations, is one outcome of these developments’. WTO15 is one of the most successful agencies for promoting mutual cooperation among the countries and provides neutral platform to resolve trade disputes. The functions and powers of the WTO that were incorporated, made sure that effective detrimental measures were included that would deter the states in exploiting other countries. It’s a negotiating platform where the member countries thrash out their trade related differences amicably and promote international trade. Doha round of WTO trade talks have become highly relevant primarily because of the new compulsions that the global business faces due to emerging new dynamics of globalization, threats from terrorism, environmental imperatives and increasing recessive trends in the global economy. Hence, successful conclusion to the Doha talks is essential for improved and mutually satisfying trade between nations. Widely known as ‘Doha Development Agenda’, the talks brought also into focus the new environmental paradigms that had become tools of bargaining by the developed nations and means of exploitation of under-developed and developed economies. 16Doha round of talks was centred on the development issues vis-à-vis international trade agreements that would promote liberalization of global markets, especially in the areas of agriculture, manufacturing and services. Doha rounds were stalled and talks could not be successfully negotiated vis-à-vis liberalizing agriculture policies, lowering tariffs for manufacturing, service sector and the road map of concessions for the developing and under-developed countries. Recently, environment compulsions have become major trade barriers for developing countries, especially while trading with US and European Union. The barriers imposed by these countries in their trade with nations that do not comply with their environment norms and imperative have become a huge concern for the international business community. WTO intervention in the cases have brought respite to the developing nations but the increasing trend of the developed nations to impose trade embargo with countries that advertently or inadvertently violate some environmental clause is adversely impacting global trade. The cases brought to WTO by Brazil and Venezuela against US’ Clean Air Act of government’s standard for gasoline are a point in case of exploiting developing nations. The countries contested that standard applied to gasoline exported by them were more stringent than the standards for their domestic refineries. 17They won the case. But very interesting and crucial factor is the political legitimacy of WTO while framing rules and regulations and guidelines for international trade between nations. 18Political legitimacy of trade institutions like WTO and multi-lateral institutions has come under lot of flak, especially after Seattle talks. The countries across the globe are independent sovereign states with well defined constitutions that promote development and general welfare of their citizens. The countries have their own compulsions and their decisions with respect to global trading are driven by own development and economic growth, benefiting their people. Hence, infringement of other countries constitution or national interest should be beyond the jurisdiction of all international agencies under normal circumstances. While some may have legitimate objection to WTO decisions but it cannot be denied that framework of WTO is based on negotiation techniques and guidelines that are mutually satisfactory. One can therefore, conclude that despite different geo-political groupings of states, nations must come together for collective actions. They must allow proper functioning of international law. The economic integration is a strong motive because economic stability of the nations greatly facilitates development of society and raises standard of living. Indeed, we must strive for a united front based on mutual interest and sharing of resources. (words: 1569) Reference Barnett, Thomas P M.(2009). Great Powers: America and the World After Bush. New York: Putnam. BBC News. (16 February, 2005). Kyoto Protocol. Retrieved from: Birnie, Patricia; Boyle, Alan and Redgwell, Catherine. (2009). International Law and Environment 3RD edition Oxford. Bull, Hedley. (1977). The Anarchical Society: A Study of Order in World Politics. Columbia University Press: New York. Carr, Indira and Stone, Peter. (2005). International Trade Law. Routledge-Cavendish. Drahozal. (2000). Commercial Laws, Commercial Code and International Commercial Arbitration Vanderbilt Journal of Transnational Laws. Vol 33, 2000. Dyson, Tim. (2005). On Development, Demography and Climate Change: The End of the World as We Know It? Population and Environment, Vol. 27, No. 2, pp. 117-149. Inglehart Ronald and Christian Welzel. (2009). How Development Leads to Democracy? What We Know About Modernization. Foreign Affairs 88.2, 33-48. Huntington, Samuel. (September 1993). Clash of Civilizations. Council of Foreign Affairs. Retrieved from: Levitt, Theodore. (1983). The Globalization of the Markets. Harvard business Review, May-June 1983. McKay, D. (2000). Political Legitimacy and Institutional Design: Comparative Lessons for the European Union. Journal of Common Market Studies, 38(1): 25-44. OECD. The Doha Development Round of trade negotiations: understanding the issues. Retrieved from: Perloff. (1992). The Ties that Bind: The Limits of Autonomy and Uniformity in International Commercial Arbitration. University of Pennsylvania Journal of International Business law, vol.13, 1992. UNIDO Report. (June 2002). Corporate Social Responsibility: Implications for Small and Medium Enterprises in Developing Countries. Retrieved from: World Bank Report. (2008). Development and Climate Change: The World Bank Group at work. Retrieved from: World Trade Organization. Retrieved from: Read More