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International Economic and Social Dimensions: Divided or Connected?

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Abstract

The recent discussions on trade and labour standards as reflected in this book mirror the widespread concern that today’s international legal framework for globalization does not sufficiently address labour conditions and, more generally, social justice. As is often observed, it appears that globalization moves on with the help of creating and further developing international ‘economic’ institutions and rules, while the ‘social’ aspects are left behind and marginalized. Often, this goes along with statements indicating that economic and social concerns have been more closely linked in the past and that they should come this close again. A historical and analytical tour d’horizon might help to give context to the recent discussion by offering a short overview over a bit more than a century of international relations and some reflections on what has been understood to be ‘economic’ and ‘social’ and how the two are or should be interrelated.

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Notes

  1. 1.

    See for instance, the labour chapters in prominent free trade agreements: Chapter 23 Trade and Labour of the Comprehensive Economic and Trade Agreement (CETA) and Chapter 19 Labor of the Trans-Pacific Partnership (TPP), consolidated text available at https://ustr.gov/trade-agreements/free-trade-agreements/trans-pacific-partnership/tpp-full-text. Accessed 22 Dec 2016.

  2. 2.

    Treaty of Peace between the Allied and Associated Powers and Germany, signed at Versailles, 28 June 1919, 225 CTS 188, Part XIII Labour; see also Schorkopf (2010).

  3. 3.

    Preamble (1) ILO Constitution, signed 28 June 1919, 15 UNTS 30, 15 UNTS 40.

  4. 4.

    Preamble (2) ILO Constitution, signed 28 June 1919, 15 UNTS 30, 15 UNTS 40.

  5. 5.

    Such as the Convention respecting the Prohibition of Night Work for Women in Industrial Employment, signed 26 September 1906, 203 CTS 4; see Sauer (2014).

  6. 6.

    Troclet (1952), p. 421 and Haas (1964), pp. 148 et seqq.

  7. 7.

    Adamthwaite (2016), pp. 216 et seqq. and Overy (2016), pp. 99 et seqq.

  8. 8.

    Bowles (2009), p. 127 et seqq. and Overy (2010), pp. 53 et seqq.

  9. 9.

    Conference of Genoa, 10 April–19 May, 1922; Overy (2010), pp. 53 et seqq.

  10. 10.

    The London Economic Conference, 12–27 July 1933; see Clarke (1973), pp. 19 et seqq.

  11. 11.

    See Clarke (1973), p. 2.

  12. 12.

    Haas (1964), pp. 154–155; Troclet (1952), pp. 422 and 710 and Rodgers et al. (2009), pp. 97 et seq.

  13. 13.

    United States, Office of War Information, Division of Public Inquiries (1941) The Atlantic Charter. http://digital.library.unt.edu/ark:/67531/metadc581/. Accessed 22 Dec 2016.

  14. 14.

    The fourth paragraph of the Charter reads: ‘Fourth, [the United Kingdom and the United States] will endeavor … to further the enjoyment by all States, great or small, victor or vanquished, of access, on equal terms, to the trade and to the raw materials of the world which are needed for their economic prosperity;’ (emphasis added).

  15. 15.

    The fifth paragraph of the Charter reads: ‘Fifth, they desire to bring about the fullest collaboration between all nations in the economic field with the object of securing, for all, improved labor standards, economic advancement and social security;’ (emphasis added).

  16. 16.

    Ibid.

  17. 17.

    The sixth paragraph of the Charter reads: ‘Sixth, after the final destruction of the Nazi tyranny, they hope to see established a peace which will afford to all nations the means of dwelling in safety within their own boundaries, and which will afford assurance that all the men in all lands may live out their lives in freedom from fear and want; ‘(emphasis added).

  18. 18.

    The term resurfaces e.g. in the preamble of the 1948 Universal Declaration of Human Rights, UN GA Res. 217(III) A.

  19. 19.

    Roosevelt (1941).

  20. 20.

    ILO Declaration Concerning the Aims and Purposes of the International Labour Organisation (Declaration of Philadelphia), adopted on 10 May 1944.

  21. 21.

    Maul (2012), pp. 83 et seqq. and Monteiro (2014), pp. 213 et seqq.

  22. 22.

    Swepston (2013), pp. 339 et seqq.

  23. 23.

    UN, Report of the Preparatory Commission, 23 Dec 1945, PC/20, pp. 40 et seqq.; Haas (1964), p. 163 and Meng (2012), Art. 57, paras. 31 et seqq.

  24. 24.

    The World Bank Group is comprised by five institutions: The International Bank for Reconstruction and Development (IBRD), The International Development Association (IDA), The International Finance Cooperation (IFC), The Multilateral Investment Guarantee Agency (MIGA) and The International Centre for Settlement of Investment Dispute (ICSID). See on the nomenclature Ragazzi (2014), mn. 1 et seq.

  25. 25.

    Articles of Agreement of the International Bank for Reconstruction and Development, 27 Dec 1945, 2 UNTS 134.

  26. 26.

    Articles of Agreement of the International Monetary Fund, 22 July 1944, 2 UNTS 39.

  27. 27.

    See Fn. 26.

  28. 28.

    See Fn. 27.

  29. 29.

    For an overview see e.g. Kitanovic and Kozuharov (2012), pp. 83 et seqq.

  30. 30.

    See for instance: Keynes (1935).

  31. 31.

    Art. 61 UN Charter.

  32. 32.

    Stoll (2012), Art 55 (a) and (b), paras. 12–13 and Riedel and Arend (2012), Art 55 (c), para. 8.

  33. 33.

    Universal Declaration of Human Rights, UN GA Res. 217(III) A.

  34. 34.

    International Covenant on Economic, Social and Cultural Rights, 16 Dec 1966, 993 UNTS 3; International Covenant on Civil and Political Rights, 16 Dec 1966, 999 UNTS 171.

  35. 35.

    Stoll (2012), Art 55 (a) and (b), para. 44.

  36. 36.

    Havana Charter for an International Trade Organization, 24 March 1948, UN Doc E/CONF.2/78.

  37. 37.

    Art 7 (3) of the Havana Charter reads: ‘In all matters relating to labour standards […] it shall consult and cooperate with the International Labour Organisation.’

  38. 38.

    See Sacerdoti (2014), para. 10.

  39. 39.

    General Agreement on Tariffs and Trade 1994, Marrakesh Agreement Establishing the World Trade Organization, 15 Apr 1994, Annex 1A, 1867 UNTS 187, 33 I.L.M. 1153 (Hereinafter cited as ‘GATT’).

  40. 40.

    Protocol of Provisional Application of the General Agreement on Tariffs and Trade, 30 Oct 1947, 55 UNTS 308.

  41. 41.

    Maupain (2013), pp. 73 et seqq.; Janse (2014) and Cissé (2012), pp. 78 et seqq.

  42. 42.

    See i.e. Declaration on the Granting of Independence to Colonial Countries and Peoples, 14 Dec 1960, UN GA A/RES/15/1514.

  43. 43.

    Fabbricotti (2009); Fortin (2013) and Schoiswohl (2013).

  44. 44.

    It nevertheless had the effect of mobilizing them to obtain reforms and concessions, often in the form of UN General Assembly resolutions: Resolution 1710 (XVI), 19 Dec 1961; Resolution 2626 (XXV), 24 Oct 1970; Resolution 35/56, 5 Dec 1980 and Resolution 45/199, 21 Dec 1990 concerning the Development Decades; Resolutions 3201 (S-VI) and 3202 (S-VI), 1 May 1974 on the New International Economic Order; Charter of Economic Rights and Duties of States, Resolution 3281 (XXIX), 12 Dec 1974; Resolution 3362 (S-VII), 16 Sep 1975 on development and international economic co-operation and Resolution 34/150, 17 Dec 1979 on the principles of the new international economic order. But in 1986, the developing countries did not succeed in winning general acceptance or recognition of the right to development, GA Res 41/128, 4 Dec 1986.

  45. 45.

    See for instance Charter of Economic Rights and Duties of States, GA Res. 3281 (XXIX), 12 Dec 1974.

  46. 46.

    James (1997), pp. 205 et seqq.

  47. 47.

    Yusuf (2009), pp. 5 et seqq.

  48. 48.

    See e.g. World Bank, World Development Report 1978.

  49. 49.

    Ibid. pp. 19 et seq.

  50. 50.

    GA Res. 3281 (XVII), 12 Dec 1974.

  51. 51.

    GA Res. 3281 (XXIX), 12 Dec 1974 and GA Res. 3202 (S-VI), 1 May 1974.

  52. 52.

    Charter of Economic Rights and Duties of States, GA Res. 3281 (XXIX), 29 Sess., 12 Dec 1974, UN Doc. A/RES/29/3281.

  53. 53.

    Especially concerning the Generalised System of Preferences (GSP) and the concept of Special and Differential Treatment. See also: WTO Committee on Trade and Development (2013) Special and Differential Treatment Provisions in WTO Agreements and Decisions, WT/COMTD/W/196.

  54. 54.

    See e.g. Report of the Review Working Party (1955) Quantitative Restrictions, BISD III, Supp 170 and Report of the Review Working Party (1955) Schedules and Customs Administration, BISD III, Supp 205. Furthermore, see Committee on Trade and Development (1980) Note by the Secretariat, COMTD/W/311. See as an example WTO, India – Quantitive Restrictions on Imports of Agricultural, Textile and Industrial Products, Report of the Panel, 6 April 1999, WT/DS90/R. Tortora (2003), p. 5.

  55. 55.

    World Trade Organization (1979) Differential and More Favourable Treatment: Reciprocity and Fuller Participation of Developing Countries, WTO Doc No L/4903; see also: http://www.wto.org/english/docs-e/legal-e/enabling-e.pdf. Accessed 1 Sept 2016.

  56. 56.

    UNCTAD, Integrated Programme for Commodities, 30 May 1976, TD/RES/93 (IV).

  57. 57.

    The Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices, Dec 1980, A/RES/35/63. See also UN (1981) Doc TD/RBP/ CONF/10/Rev.1.

  58. 58.

    UNCTAD Secretariat Report (1975) An International Code of Conduct on the Transfer of Technology, UN Doc TD/B/C.6/AC.1/2/Supp 1/Rev. 1. See Patel et al. (2000).

  59. 59.

    Sauvant (2015).

  60. 60.

    Ibid., p. 34.

  61. 61.

    See OECD Declaration on International Investment and Multinational Enterprises, 21 June 1976, C(76)99 (Final). For the most recent version see http://www.oecd.org/daf/inv/investment-policy/oecddeclaration anddecisions.htm. Accessed 15 Sep 2014. As of late 2014, all 34 OECD member countries and 12 non-OECD members had adhered to the Declaration.

  62. 62.

    OECD Resolution of the Council establishing a Committee on International Investment and Multinational Enterprises, 21 Jan 1975, C(74)247(Final).

  63. 63.

    ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy, adopted on 16 Nov 1977.

  64. 64.

    Schill et al. (2015), pp. 21 et seqq.

  65. 65.

    See for instance Francis and Nicholson (1965).

  66. 66.

    Dolzer and Schreuer (2008), pp. 3 et seqq.

  67. 67.

    Treaty between the Federal Republic of Germany and Pakistan for the Promotion and Protection of Investments, signed on 25 Nov 1959, 457 UNTS 23.

  68. 68.

    See http://investmentpolicyhub.unctad.org/IIA. Accessed 1 Sept 2016.

  69. 69.

    Reinisch and Malintoppi (2008).

  70. 70.

    Convention on the Settlement of Investment Dispute between States and Nationals of Other States (ICSID Convention), 18 Mar 1965, 575 UNTS 159.

  71. 71.

    For instance, pre-investment rights protection could be found in ‘US model’ bilateral investment treaties and the investment chapters of free trade agreements such as NAFTA; see also Houde and Yannaca-Small (2004).

  72. 72.

    International Covenant on Civil and Political Rights, 16 Dec 1966, 999 UNTS 171.

  73. 73.

    International Covenant on Economic, Social and Cultural Rights, 16 Dec 1966, 993 UNTS 3.

  74. 74.

    Alston (1979) and Rodgers et al. (2009), p. 39. See also the express references to the ILO Freedom of Association and Protection of the Right to Organise Convention 1948 (No. 87) in the final text of Art. 22 (3) ICCPR and Art. 8 (3) ICESCR.

  75. 75.

    Kolodko (1999) and Stoll (2009), pp. 273 et seq.

  76. 76.

    United Nations (1992) Report of the United Nations conference on environmental and development, 3–14 June 1992, A/CONF.151/26.

  77. 77.

    United Nations (1972) Report of the United Nations Conference on the Human Environment, 5–16 June 1972, A/CONF.48/14Rev.1.

  78. 78.

    Convention on Biological Diversity, concluded 5 June 1992, 1760 UNTS 79 and United Nations Framework Convention on Climate Change, signed on 9 May 1992, 1771 UNTS 107. See also Dupuy (2013), pp. 11 et seqq.

  79. 79.

    Stoll (2012), Art. 55 (a) and (b), paras. 63 et seqq. and Stoll (2009), pp. 291.

  80. 80.

    Ulrich (2009), pp. 716 et seqq.

  81. 81.

    Principle 12 UN Rio Declaration on Environment and Development, 12 Aug 1992 and Chapter 2 (A) UN Agenda 21, adopted by United Nations Conference on Environment and Development, 3–14 June 1992.

  82. 82.

    Marrakesh Agreement Establishing the World Trade Organization, 15 Apr 1994, 1867 UNTS 154, 33 I.L.M. 1144.

  83. 83.

    Agreement on Trade-Related Aspects of Intellectual Property Rights, Marrakesh Agreement Establishing the World Trade Organization, 15 Apr 1994, Annex 1C, 33 I.L.M. 1197 and General Agreement on Trade in Services, Marrakesh Agreement Establishing the World Trade Organization, 15 April 1994, Annex 1 B, 33 ILM 1168. See Stoll (2009), pp. 279 et seqq.

  84. 84.

    Art. 17 DSU, Dispute Settlement Rules: Understanding on Rules and Procedures Governing the Settlement of Disputes, Marrakesh Agreement Establishing the World Trade Organization, Annexs 2, 33 I.L.M. 1226.

  85. 85.

    See Weiss (2005), pp. 574 et seqq.

  86. 86.

    See i.e. Leary (1997).

  87. 87.

    The fourth paragraph of the Declaration reads: ‘We renew our commitment to the observance of internationally recognized core labour standards. The International Labour Organization (ILO) is the competent body to set and deal with these standards, and we affirm our support for its work in promoting them. We believe that economic growth and development fostered by increased trade and further trade liberalization contribute to the promotion of these standards. We reject the use of labour standards for protectionist purposes, and agree that the comparative advantage of countries, particularly low-wage developing countries, must in no way be put into question. In this regard, we note that the WTO and ILO Secretariats will continue their existing collaboration.’

  88. 88.

    See Copenhagen Declaration on Social Development, Annex I, A/Conf. 166/9, para. 5.

  89. 89.

    Ibid., para. 26 (a).

  90. 90.

    Ibid., para. 28, Commitment 3.

  91. 91.

    Hansenne (1994). Regarding the four stages see Maupain (2013), p. 51.

  92. 92.

    ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up, International Labour Conference, adopted on 18 June 1998 and Annex revised 15 June 2010, para. 5.

  93. 93.

    ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up, International Labour Conference, adopted on 18 June 1998 and Annex revised 15 June 2010, para. 6.

  94. 94.

    Maupain (2013), pp. 51–52.

  95. 95.

    Alston (2004), pp. 509 et seqq. and Kellerson (1998), pp. 223 et seqq.

  96. 96.

    Rodgers et al. (2009), pp. 222 et seqq.

  97. 97.

    United Nations Millennium Declaration, GA Res. 55/2, 8 Sep 2000, para. 20.

  98. 98.

    ILO Declaration on Social Justice for a Fair Globalization, adopted on 10 June 2008.

  99. 99.

    Transforming our World: the 2030 Agenda for Sustainable Development, GA Res. 70/1, 25 Sep 2015.

  100. 100.

    Convention concerning Minimum Age for Admission to Employment (No. 138); Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Form of Child Labour (No. 182); Convention concerning the Abolition of Forced Labour (No. 105); Convention concerning Forced or Compulsory Labour (No. 29); Convention concerning Equal Remuneration for Men and Women Workers for Work of Equal Value (No. 100); Convention concerning Discrimination in Respect of Employment and Occupation (No. 111); Convention concerning Freedom of Association and Protection of the Right to Organize (No. 87) and Convention concerning the Application of the Principles of the Right to Organize and to Bargain Collectively (No. 98). See e.g. Art. 9 and EU Parliament and Council Regulation 978/2012 applying a scheme of generalised tariff preferences and repealing Council Regulation (EC) No 732/2008, O.J. L 303/1 (2012), annex VIII, part A.

  101. 101.

    See e.g. European Parliament and Council Regulation 978/2012 applying a scheme of generalised tariff preferences and repealing Council Regulation (EC), O.J. L 303/1 (2012), Art. 19 (1) (a).

  102. 102.

    Alston (2004), pp. 497 et seqq. and Compa and Vogt (2001).

  103. 103.

    On the incremental development of US and Canadian FTA labour chapters see Bolle (2016), pp. 2 et seqq. and Lazo Grandi (2009), p. viii.

  104. 104.

    Bartels (2012) and also Novitz (2017).

  105. 105.

    Lazo Grandi (2009).

  106. 106.

    Gordon et al. (2014), pp. 10 et seqq.

  107. 107.

    UNHR, Office of the High Commissioner (2011) Guideline Principles on Business and Human Rights, HR/PUB/11/04.

  108. 108.

    See e.g. European Commission (2011) A renewed EU strategy 2011–2014 for Corporate Social Responsibility, COM(2011) 681 and European Parliament and Council Directive 2014/95/EU amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups, O.J. L 330/1 (2014).

  109. 109.

    See Fn. 87.

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Stoll, PT. (2018). International Economic and Social Dimensions: Divided or Connected?. In: Gött, H. (eds) Labour Standards in International Economic Law. Springer, Cham. https://doi.org/10.1007/978-3-319-69447-4_2

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