The Economic Perspective of the Law of International Institutions

This article reviews through an economic lense the law of international institutions,which through managing the relationship among states is gradually leading to the emergence of a global regime with imperial tendencies. Nations express their interest in belonging to international institutions for the purpose of gaining socio-economic and political benefits achievable under a harmonised system of mutual dependence. Although this article does not seek to analyse whether the developing nations are better off belonging to international institutions, it nonetheless reviews the rationale behind developing nations maintaining their membership of international institutions despite the widening gap between the rich and the poor nations. The strategic positioning of the international institutions sways favourably towards indirectly aiding developed countries to continue dominating the developing nations. Exercise of power by international institutions bring to the fore that states - the less developed states in particular - are gradually losing their sovereignty and inherent power to superintend their domestic affairs without external influence. This accentuates the notion that international institutions are gradually assuming an imperial status, which has successfully replaced colonialism with neo-colonialism, to be favoured on the global market. The international legal movement is thus reflected in and by economic consequences unfavourable to developing nations.