The Transnational Protection of Private Rights: Issues, Challenges, and Possible Solutions

Abstract

The global community faces the challenge of dealing with movements in opposite directions: the emphasis on decolonization and self-determination in the postwar world has encouraged the building of barriers and boundaries between jurisdictions, while globalization has encouraged the breaking or transcending of the same. This paper focuses on the legal protection of private economic rights in the transnational arena by considering the regulation of transnational economic relationships at three different levels: (a) where a party's rights are not regulated or governed by any contract; (b) where there is a contract between the parties; and (c) where a foreign investor looks to protect its investment against unlawful interference by a host state. It concludes with some thoughts on what might lie ahead and suggests possible solutions to the issues and challenges faced.In the wake of the two World Wars that rocked the international order in the twentieth century, the right of nations to self-determination was enshrined in Article 1 of the Charter of the United Nations. 1 Among the most important developments of the postwar era has been the disintegration of the colonial empires and a consequent massive increase in the number of states and polities. 2 With this, came a proliferation of borders that each contained different sovereign legal systems and laws.At the same time, the rebuilding and reconstruction of the postwar world created both the impetus and the opportunity to focus on development and economic growth. 3