The Experience Of Developing Countries With The International Economic Legal Framework: Is There A ‘Right’ To Development?

LAWS 5200/INAF 5507

INTERNATIONAL ECONOMIC LAW: REGULATION OF TRADE AND INVESTMENT
TERM PAPER

THE EXPERIENCE OF DEVELOPING COUNTRIES WITH THE INTERNATIONAL ECONOMIC LEGAL FRAMEWORK: IS THERE A ‘RIGHT’ TO DEVELOPMENT?

Professor: Paul J. Davison
Student Name: Blanca Lopez

The Experience of Developing Countries with the International Economic Legal Framework: Is There a ‘Right’ toDevelopment?

“The great rewards to globalixed trade have come to some, but not to others. What is needed is to create conditions for a fuller and fairer sharing of the enormous benefits from trade. Can this be done without destroying the global market economy? The answer is very firmly yes”.
Amartya SenNobel Prize Winner and Honorary President of Oxfam

In the current system of international trade, the role of law is essential in regulating economic activity. However, when one analyzes how developing countries experience international economic law, and international organizations that regulate that law, it is important to assess the role of the different elements of the internationaleconomic legal framework in that experience. Not only is International Economic Law regulating international trade and investment but also it is affecting the way in which developing countries are regulating their decision-making processes in order to adapt their economic and political affairs to a globalized world. International trade and investment play a major role in the promotion of economicdevelopment. The questions are: does the international economic legal system help to promote the alleviation of poverty and generate opportunities to increase welfare gains? Or do multilateral agreements burden the economy of the least developed countries?
The aim of this paper is twofold. First, this paper seeks to asses whether or not there is a development law as law. In doing that itwill be important to see whether or not Development Law is actually law or remains at the level of ideology. It will also be considered the competing views (traditional and modern) about development and which of these views can be better adapted to a globalized world. The aim of this first section is to analyze to what extent we can say that there is a right to development. An historical account ofdevelopment law will be presented in order to see the context in which the concept of development law has emerged. It will be analyzing the influence of countries and international organizations such as United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization (herein the WTO) to the emergence of the concept of development law.
The second aim of this paperseeks to analyze whether or not the international economic legal framework is allowing full participation of developing countries in global economic activity or by the contrary, is affecting their economic and political affairs and impacting negatively their population and environment. This second objective will be developed in sections 2 and 3.
Section two will be focused on the legal andinstitutional framework directly affecting the experience of developing countries in their participation in the global economy. This section will be divided into three sub-sections. Section 2.1) will be an analysis of Article XVIII and Part V of GATT. Since these are considered the basis of current legislation addressing the needs for differential treatment for developing and least developingcountries.
Section 2.2) will be focused on the analysis of the Agreement on Differential and More Favourable Treatment, Reciprocity and Fuller Participation of Developing Countries commonly known as the ‘Enabling Clause’. The Enabling Clause is considered to provide a permanent basis for the allowance of preferences to be granted to developing countries. This section will briefly addressed...