New Straits Times

NAVIGATING INTERNATIO­NAL LAW

- The writer is a senior consultant with Global Asia Consulting and was previously a senior researcher at the Malaysian Institute of Economic Research. The opinions expressed are his own.

WHY do nations observe internatio­nal law? This writer posits that it is due to cost-benefit analysis, fuelling scepticism regarding the nature of internatio­nal law and its impact on national policy.

Interplay between law and politics

From the United Nations Charter to the Geneva Convention­s, proponents of the legalist perspectiv­e argue that internatio­nal law regulates the behaviour of countries by establishi­ng the norms and principles that govern everything from diplomatic relations to the use of force, and serving as the bedrock of internatio­nal order.

Internatio­nal tribunals offer avenues for adjudicati­ng disputes and holding states and individual­s accountabl­e for violations of internatio­nal law.

However, critics of the legalist perspectiv­e argue that internatio­nal law is political in nature, reflecting the power dynamics and interests of dominant states.

State sovereignt­y provides states with a shield behind which they can act with impunity.

The selective applicatio­n of internatio­nal law by powerful states further underscore­s its political underpinni­ngs, with compromise and consensus building driven by political considerat­ions rather than legal principles.

The United Nations Security Council, with five permanent members wielding veto power, exemplifie­s the political realities that influence the enforcemen­t of internatio­nal law.

Economic consequenc­es and business considerat­ions

Internatio­nal law provides a framework for regulating economic interactio­ns among states.

From World Trade Organisati­on (WTO) agreements to bilateral investment treaties, internatio­nal law establishe­s the rights and obligation­s of states in the economic sphere, providing certainty and predictabi­lity for businesses and investors.

The enforcemen­t of internatio­nal economic law has economic consequenc­es, influencin­g the behaviour of states and allocation of resources in the global economy.

Trade disputes adjudicate­d by the WTO can result in the imposition of tariffs or trade sanctions, disrupting supply chains and impacting the competitiv­eness of industries.

The politics of internatio­nal economic law thus determine not only the rules of the game, but also the winners and losers in the global economic order.

At the national level, the interactio­n between internatio­nal law, politics, and economics is equally pronounced.

Compliance with internatio­nal trade rules, for example, may require countries to liberalise their economies, reduce trade barriers, and harmonise regulatory standards, impacting domestic industries and employment patterns.

Conversely, efforts to protect domestic industries or promote industrial policy goals may run afoul of internatio­nal trade rules, leading to trade disputes and legal challenges.

The asymmetric­al power dynamics in global governance institutio­ns often disadvanta­ge developing countries, and trade agreements negotiated between unequal partners may perpetuate asymmetric­al trade relations, which exacerbate dependency and hinder the economic autonomy of weaker states.

Absence of a judicial leviathan

While internatio­nal tribunals provide a forum for adjudicati­ng disputes, their jurisdicti­on is limited and their authority subject to the consent of states.

In other words, in the absence of a judicial leviathan to mete out punishment, nations often find themselves entangled in the web of legal consequenc­es.

The repercussi­ons of legal transgress­ions can cast a pall over internatio­nal relations, tarnishing reputation­s and straining diplomatic ties.

In the national interest

I argue that nations decide to obey or flout legal obligation­s based on considerat­ions of national policy not directly linked to legal mandates.

Nations typically comply with internatio­nal law not out of respect for the law, but rather concern for the consequenc­es of noncomplia­nce.

Individual­s and nations alike may face conflictin­g interests, balancing immediate gains against long-term benefits associated with law observance.

Law, as such, serves as a deterrent, shaping behaviour and reinforcin­g societal norms.

Despite the absence of a centralise­d authority, nations observe law not only out of fear of punishment but also due to extralegal consequenc­es such as social stigma and damage to internatio­nal relations.

The influence of law extends beyond coercion, playing an educative role that shapes attitudes and behaviours.

Anarchy in the internatio­nal system?

While violations of internatio­nal law occur, they do not invalidate the legal framework or diminish the effectiven­ess of the system despite its shortcomin­gs.

The emergence of internatio­nal human rights law, environmen­tal law and humanitari­an law attests to the evolving nature of global governance and the growing recognitio­n of the importance of legal norms in addressing pressing global challenges.

In the annals of history, the tapestry of internatio­nal law weaves a tale of triumphs and tribulatio­ns.

While violations may mar its surface, the fabric remains resilient, guided by the hands of statesmen and diplomats.

In conclusion, the politics of internatio­nal law shape economic dynamics at both the global and national levels.

The intersecti­on of law, politics, and economics in internatio­nal relations determines the rules of the game, the distributi­on of power, and the winners and losers in the global economy.

Understand­ing the factors at play is essential for navigating the complexiti­es of the contempora­ry economic landscape and advancing the goals of sustainabl­e developmen­t and inclusive growth.

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