CHAPTER
1 International
Economic Law
Introduction
Aziz Rakhmonov
YTIT
Plan:
Introduction
What is International Economic Law (IEL)
Historical Development of IEL
Bretton Woods system
Introduction
Interdependence is a key term in
characterizing the modern economic life
of states.
Governments have come to realize that
their own interests can be addressed
through international cooperation by
means of treaties, agreements, and
consultation.
So, what is International cooperation:
Introduction
So, what is International cooperation:
The interaction of persons or groups of persons
representing various nations in the pursuit of a
common goal or interest.
A universal mode of interaction between two
or more countries based on sharing research
results, production, commerce, protection of
investments, and industrial know-how.
Introduction
The willingness to pursue cooperation is
due largely to these three needs:
To gain reciprocal advantages
To attack problems jointly that one country
acting alone cannot solve
To deal with areas of concern that lie outside
the territory of any nation
Introduction
What is reciprocal advantages? - :
the governments join international organizations
and sign treaties and agreements with other
governments for a variety of commercial activities.
For instance, some treaties and agreements allow
countries’ commercial ships and planes to use
each other’s seaports and airports; some protect
property, such as foreign-owned investments.
Countries also enact treaties for reciprocal
reductions of import restrictions.
Introduction
What is joint problem solving? - :
Governments often act to coordinate activities
along their mutual borders by building highways,
railroads, and hydroelectric dams that serve the
interests of all parties.
They also cooperate to solve problems that they
either can’t or won’t solve alone.
First, the needed resources may be too great for one
country to manage.
Further, sometimes no single country is willing to pay all
the cost for a project that will also benefit another
country.
Introduction
What is Areas Outside National Territories? - :
Three global areas belong to no single country: the
noncoastal areas of the oceans, outer space, and
Antarctica.
Until their commercial viability was demonstrated, they
excited little interest for either exploitation or multinational
cooperation.
The oceans, however, contain food and mineral resources
and constitute the surface over which much international
commerce passes.
Antarctica, with minerals and abundant sea life along its
coast, attracts thousands of tourists each year, has a
highway leading to the South Pole and a Russian Orthodox
church.
Introduction
In brief, International cooperation contributes
to:
Tackle global challenges
Advance science
Capture knowledge flows
Increase impact
But, Trust is the issue without concrete set
rules and regulations
Game theory: Prisoners Dilemma
Introduction
Game theory: Prisoners Dilemma
IEL has emerged from an effort to deal with
conflict among states, since rules provide order
What is International Economic Law
What is IEL?
International economic law regulates the
international economic order or economic
relations among nations.
The New International Economic Order (NIEO) is a
set of proposals advocated by developing countries to
end economic colonialism and dependency through a
new interdependent economy.
Principles of NIEO
is equity, sovereign equality, interdependence, common
interest, cooperation and solidarity among all States.
Salvatore: International Economics, 11th Edition © 2013 John Wiley & Sons, Inc.
Introduction
What is IEL?
The notion ‘International Economic Law’
encompasses a complex architecture of rules
governing international economic relations and
trans-boundary economic conduct by States,
international organizations, and private actors.
The term essentially refers to the regulation of cross-
border transactions in goods, services, and capital,
monetary relations and the international protection of
intellectual property.
Salvatore: International Economics, 11th Edition © 2013 John Wiley & Sons, Inc.
Introduction
What is IEL?
In brief, International economic law regulates the
international economic order or economic
relations among nations.
The New International Economic Order (NIEO) is a
set of proposals advocated by developing countries to
end economic colonialism and dependency through a
new interdependent economy.
Principles of NIEO
is equity, sovereign equality, interdependence, common
interest, cooperation and solidarity among all States.
Salvatore: International Economics, 11th Edition © 2013 John Wiley & Sons, Inc.
Introduction
Basis of IEL:
International economic law is based on the
traditional principles of international law
such as:
Pacta sunt servanda ( Latin for "agreements
must be kept" )
freedom
sovereign equality
reciprocity
economic sovereignty
Introduction
Basis of IEL:
It is also based on modern and evolving
principles such as:
the duty to co-operate
permanent sovereignty over natural resources
preferential treatment for developing countries
in general and the least-developed countries in
particular.
Salvatore: International Economics, 11th Edition © 2013 John Wiley & Sons, Inc.
Introduction
The sources of international economic law are the
same as those sources of international law generally
outlined in Article 38 of the Statute of the
International Court of Justice:
The first source is international conventions of a
general or particular nature.
Secondly, international custom is a source of law
if it is evidenced that a certain custom has been
accepted as law.
Thirdly, general principles of law recognized by
civilized nations;
Salvatore: International Economics, 11th Edition © 2013 John Wiley & Sons, Inc.
Introduction
The sources of international economic law are the
same as those sources of international law generally
outlined in Article 38 of the Statute of the
International Court of Justice:
The first source is international conventions of a
general or particular nature.
Secondly, international custom is a source of law
if it is evidenced that a certain custom has been
accepted as law.
Thirdly, general principles of law recognized by
civilized nations;
Salvatore: International Economics, 11th Edition © 2013 John Wiley & Sons, Inc.
Evolution
The foundations of IEL lie firmly in the development
of Western culture and political organization.
After emperor Napoleon was being defeated in May 1814
the victorious Great Powers: Russia, Great Britain, Austria
and Prussia, invited the other states of Europe to Vienna for
a peace conference.
Evolution
The foundations of IEL lie firmly in the development
of Western culture and political organization.
The League of Nations: was the first worldwide
intergovernmental organisation whose principal mission was
to maintain world peace. It was founded on 10 January 1920
following the Paris Peace Conference that ended the First
World War.
Evolution
The foundations of IEL lie firmly in the development
of Western culture and political organization.
The Bretton Woods system of monetary
management established the rules for commercial and
financial relations among the United States, Canada, Western
European countries, Australia, and Japan after the 1944
Bretton Woods Agreement.
The Bretton Woods system was the first example of a
fully negotiated monetary order intended to govern monetary
relations among independent states.
he United States, which controlled two thirds of the world's
gold, insisted that the Bretton Woods system rest on both
gold and the US dollar.
Evolution
The foundations of IEL lie firmly in the development
of Western culture and political organization.
The United Nations (UN) is an intergovernmental
organization that aims to maintain international
peace and security, develop friendly relations among nations,
achieve international cooperation, and be a centre for
harmonizing the actions of nations.
It is the most powerful intergovernmental organization in the
world.
Increased Trust and Give rise to cooperation
Q&A
What is the main reasons for countries to cooperate?
What is International cooperation
What is the IEL?
What is Bretton Woods system
What are the principles of IEL
