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The Subdued Giant: The Predicament of the Law in Harnessing Global Markets

The Subdued Giant: The Predicament of the Law in Harnessing Global Markets NORMAN MUGARURA∗ I. INTRODUCTION The article delineates that it is impossible to have any meaningful regional or global market economy in the absence of a proper functioning1 legal system. As such, law as an instrument for social change should provide a framework in which to order a meaningful global economy. It is my submission that global co-operation is necessary to avoid the adverse effect of the prisoner’s dilemma, in which each participant is unsure of whether others will cooperate, or engage in behaviour detriment to the stability of the global economy.2 However, harnessing global initiatives has proven problematic given that states are characterised by different development dynamics, which tends to dictate the symmetric distribution of the engendered benefits.3 The need for a common legal framework is particularly essential to ensure that different jurisdictions compliment each other in safeguarding against regulatory arbitrage4 or regulatory failures.5 Regulatory arbitrage and regulatory failures are common features of an uncoordinated international system. In order for some aspects of a large-scale regulation to be effective, it must be co-ordinated and perhaps formulated on a ∗ Dip (Bus), LLB (Hons), LLM (International Legal Studies) University of East London, LLM (Banking and Finance) Queen Mary University http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png African Journal of International and Comparative Law Edinburgh University Press

The Subdued Giant: The Predicament of the Law in Harnessing Global Markets

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Publisher
Edinburgh University Press
Copyright
© Edinburgh University Press 2009
Subject
Articles; African Studies
ISSN
0954-8890
eISSN
1755-1609
DOI
10.3366/E0954889009000413
Publisher site
See Article on Publisher Site

Abstract

NORMAN MUGARURA∗ I. INTRODUCTION The article delineates that it is impossible to have any meaningful regional or global market economy in the absence of a proper functioning1 legal system. As such, law as an instrument for social change should provide a framework in which to order a meaningful global economy. It is my submission that global co-operation is necessary to avoid the adverse effect of the prisoner’s dilemma, in which each participant is unsure of whether others will cooperate, or engage in behaviour detriment to the stability of the global economy.2 However, harnessing global initiatives has proven problematic given that states are characterised by different development dynamics, which tends to dictate the symmetric distribution of the engendered benefits.3 The need for a common legal framework is particularly essential to ensure that different jurisdictions compliment each other in safeguarding against regulatory arbitrage4 or regulatory failures.5 Regulatory arbitrage and regulatory failures are common features of an uncoordinated international system. In order for some aspects of a large-scale regulation to be effective, it must be co-ordinated and perhaps formulated on a ∗ Dip (Bus), LLB (Hons), LLM (International Legal Studies) University of East London, LLM (Banking and Finance) Queen Mary University

Journal

African Journal of International and Comparative Law – Edinburgh University Press

Published: Sep 1, 2009

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