Global Economic Constitution: Neo-liberalism, Globalization and WTO

This report provides an in-depth analysis of the global economic constitution, exploring the interplay between neo-liberalism, globalization, and the World Trade Organization (WTO). It begins by defining the global economic constitution and its implications for individual countries, emphasizing the importance of international economic law and the roles of organizations like the WTO. The report delves into neo-liberalism, examining its principles, historical context, and impact on various sectors, including free markets, privatization, and the role of government. It explores the relationship between neo-liberal policies and economic development, highlighting the effects of globalization on employment, poverty, and international trade. The analysis also covers the WTO's objectives, functions, and influence on trade agreements and policies, focusing on its role in promoting free trade, securing employment, and supporting globalization. The report concludes by summarizing the key arguments and highlighting the interconnections between the concepts discussed, providing a comprehensive overview of the global economic landscape and its key drivers.

Global Economic Constitution

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
SESSION 1......................................................................................................................................2
SESSION 2......................................................................................................................................6
SESSION 3......................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
1

INTRODUCTION
Global economic constitution stands for different set of rules and policies which are
different for each country. As every nation is bound to comply with such rules which are
imposed on them in order to maintain economic condition of the country. International economic
law is the concept which involves regulation as well as conduct of states. International
companies and private organizations are operating in economic arena. Such economic law is
associated with trade which is considered as international 1. It is able to develop services, tax and
monetary law. Legal institution name called World Trade Organization play significant role in
development of economy. Constitution considered as legal body which define various types of
rules, regulation and policies. It bound entire country to comply with accordingly and maintain
performance of people as well.
SESSION 1
Neo-liberalism- Neo-liberalism is considered as a body which is related to political
economic, through which advocates are able to organize society in the case of free market
economy. This doctrine is related to liberalism but different from certain other situation. Neo-
liberalism has been launched in the year 1970. Furthermore, it is able to extend market model up
to the political as well as social spheres (Neoliberalism, higher education and the knowledge
economy: from the free market to knowledge capitalism. 2017). This concept is able to promote
free market in land, labour and capital. Furthermore, this process is able to improve living
standard of people. Demand management as well as progressive taxation has been regulate with
the help of free market capitalism. Countries have to opted new technologies in order to reduce
production costs or expand market share globally. This concept is able to improve life and
standard of living of people this process of helpful for growth and development of entire country
2. Several countries are responsible to comply with neo-liberal policies which is able to improve
those countries. Members have to use such policies in order to performance of entire country in
effective manner. Furthermore, Neo-liberalism is the policy which is able to control economic
factors from public to private sector. It refers to enhance free economy through eliminating
1 Allen, R.C., 2011. Global economic history: a very short introduction (Vol. 282). Oxford
University Press.
2 Wang, Y. and Lim, H., 2012. The global childhood obesity epidemic and the association
between socio-economic status and childhood obesity.
1

regulations. The main aim of this process is economic development and try to protect interest of
people. It was introduced in the favour of privatization. It can reduce rule of government in
public affairs. Neo-liberalism is the concept which is able to increase privatisation and reduce
performance of legal authorities 3. Government is not able to intervene in economical concept.
Through this, companies are not able to contribute in social welfare but concentrate on money
earning process. This is the prime mechanism which involves group demands which are able to
determine economic growth. Also, public as well as private cooperation are guided by planning
agency. This concept is able to sustained investment in course of mass education. With the
concept of Neo-liberalism, distribution of income is equally conducted which is beneficial for
entire country. Equal distribution of income is beneficial for entire state. No discrimination done
with any members on the basis of their age, caste and much more. Otherwise unequal situation
creates ethical behaviour among people. For this purpose, they have to opt different types of
methods or procedure related to economic intervention which are based on market incentives.
With the help of this concept, organizations are effectively contributing in the growth and
development program of country and maintaining the performance as well 4. It is able to expand
free trade policy. Under such situation, companies are able to freely contribute in the growth and
development of country through increased export and reduced rate of import from country.
Privatization at the state level enterprises is possible with the help of this concept. In this
condition, there is no role of government. It provides protection to domestic markets which is
related to the foreign import competition. Enhance domestic control which maintain control over
the capital market. Representative of each country have to opted several types of policies which
are imposed on them and have to maintain their performance as well 5. Through this organization
are able to effectively participate in economic competition at international level. There are
different kinds of neo-liberal projects such as plan change, adjustment of policy, transformation
of system and much more. The literal meaning of such concept is that it depends on institutional
3 Beckert, J. and Zafirovski, M. eds., 2013. International encyclopedia of economic
sociology. Routledge.
4 Castles, S., De Haas, H. and Miller, M.J., 2013. The age of migration: International
population movements in the modern world. Palgrave Macmillan.
5 Contiades, X. and Fotiadou, A., 2012. Social rights in the age of proportionality: Global
economic crisis and constitutional litigation. International Journal of Constitutional
Law. 10(3). pp.660-686.
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circumstances which occur. Furthermore, neo-liberalization is considered as a contingent
process. For this reason, countries have to frame different policies which are beneficial for
people. Through this, coordination among two or more countries gets improved. Members can
easily conduct import and export in order to maintain their performance and try to fulfil the
needs of customers. Also, they try to implement such policies which are beneficial for them.
Neo-liberalization as well as globalisation are having impact on growth and development of
economy as it increases rate of employment in nation and reduces the level of poverty. It is able
to effectively contribute in development program. Unemployment is the situation in which large
number of illiterate people present or lack of education of people 6. This concept is able to reduce
conflict among labour and capital. Also it reduces contribution of legal authorities. Furthermore,
government is not able to intervene among private sectors 7. It is able to expand privatization in
which private persons perform functions in order to satisfy their customers and try to attract a
large number of people. For this purpose, they have to opt different methods and try to frame
plans or strategies. Implementation of such plans is compulsory for attaining their target and
meeting the demand of people as well.
For example- Neo-liberaization increase number of employment opportunities for people
and try to enhance their living of standard as well. Provide job to large number of unemployed
person.
This concept is helpful for both developed as well as developing countries. Developed
countries are considered as nations which is completely settle and able to fulfil demand of people
8. Furthermore, developing countries are fully dependent on developed countries. Members of
such counties can import various types of products and services in order to fulfil their demand.
At the time of conducting import and export functions, members have to follow different types of
rules, regulations and policies which are imposed on them. As countries have to comply with
rules accordingly. But with the help of neoliberalization states receive opportunities to improve
coordination with several other states. In this situation, government plays an effective role in
6 Coe, N.M. and Yeung, H.W.C., 2015. Global production networks: Theorizing economic
development in an interconnected world. Oxford University Press.
7 Fraser, N., 2010. Injustice at intersecting scales: On ‘social exclusion’and the ‘global
poor’. European Journal of Social Theory. 13(3). pp.363-371.
8 Gudynas, E., 2011. Buen Vivir: today's tomorrow. Development. 54(4). pp.441-447.
1

creating or defending markets. Several other functions are able to discharged by private sectors
which has been conducted in order to earn better profit by supplying products and services in
international market. People have to receive knowledge about their economic interest which is
present in free market through which they will exhaust entire beneficial opportunities in order to
produce products and services also exchange them through other countries. Such type of
exhaustion is beneficial for providing opportunities which considered mutually benefits for trade
policies. There are large number of workers are considered as unemployed because they
searching for better opportunities and looking for high pay. In the concept of liberal both factors
are involved in it such as labour as well as capital. These factors are able to maintain better
efficiency or development 9. The process of globalization is able to provide mobility to a large
number of people. Through this mobility factor, workers get job in field for which they are
looking for. They receive better opportunities in order to improve their skills, knowledge and
experience. The mobility among nations has been restricted. On the other hand, capital mobility
is able to increased enormously. Globalisation is the process which is able to increase contact
among countries 10. Rapid development can be possible with the help of this process. Countries
are able to exchange a large number of products and services. It is described as the procedure of
integration which come under the world’s economy. It consists of strategies which provide
development and growth with the help of rapid integration. Through this, two or more countries
come in legal contractual relationship with each other and try to perform their obligation which
are imposed on them. Usually, globalisation is able to work against the interest of developing
countries through which they create global inequality. Therefore, developing countries usually
depend on developed countries in order to receive varieties of products and services. Through
this concept, they can provide goods according to the demand of customers and maintain their
performance as well.
On the other side, World Trade Organization is the most powerful and international body.
It is effectively contributing in the growth and development programme which is beneficial for
the entire country 11. It can increase trading from one country to another in order to meet the
needs to people. While conducting the process, they have to follow different types of rules or
9 Helleiner, E., 2010. A Bretton Woods moment? The 2007–2008 crisis and the future of
global finance. International affairs. 86(3). pp.619-636.
10 Joerges, C., 2013. What is Left of the European Economic Constitution: A Melancholic
Eulogy. Law Ukr.: Legal J.. p.76.
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rights such as human, customer and labour rights. Provide social justice to people and maintain
environmental protection. WTO is replaced with GATT which is subsequently known as General
Agreement on Tariffs and Trade 12. It is helpful in securing better employment and able to reduce
tariffs as well. The main aim of WTO is that enforcing or enhancing trade contracts which is
created among developed and developing countries. Also try to continue negotiations which are
related to trade as well as investment rules. It can able to enhance free trade policies through
which companies are easily conduct import and export from one country to another. But it can be
done up to the limit which is specified under law and imposed limit on them. The main
objectives of WTO are that provide employment to large number of people and try to improve
their standard of living and secure their life from exploitation
It is able to support globalization process 13. The term globalization is not better result of
technical values or innovation but also consists some capital concentration. It is able to spread
process of production geographically and helpful in decision making process. So that, for this
purpose constitution included different types of rules, regulation, policies and procedure which
are helpful for international trade policy. Such rules are varying from country to country. As
members are bound to comply with such rules which are imposed on them. Such laws are
mentioned in the written form in constitution. This concept mainly focuses on maintaining the
relationship among different states or nations 14. Neo-liberal is the latest version of globalisation
which is able to maintain economic development. It can able to reduce economic as well as
political crises. For this purpose, legal authorities have to frame some plans and strategies and try
to implement them according to the requirement of country. With the help of this concept,
financial sectors are able to increase their reliance under trading of different items in order to sell
them in international market and earn better profits. Neo-liberalism mainly focuses on free
11 Kristensen, P.H. and Lilja, K. eds., 2011. Nordic capitalisms and globalization: New
forms of economic organization and welfare institutions. Oxford University Press.
12 Young, I.M., 2010. Responsibility and global labor justice. In Responsibility in
Context (pp. 53-76). Springer Netherlands.
13 Kshetri, N., 2010. The global cybercrime industry: economic, institutional and strategic
perspectives. Springer Science & Business Media.
14 Milner, H.V. and Tingley, D.H., 2011. Who supports global economic engagement? The
sources of preferences in American foreign economic policy. International
Organization. 65(1). pp.37-68.
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market forces as well as able to enhance private enterprises. They have to perform functions
according to the choice of consumers 15. Also, it reduces role of government from market as legal
authorities are not able to intervene in private sector. But this legal body frame anti-market
policies in order to protect or maintain property which is considered as private. Furthermore,
neo-liberal policies argue that market become unstable due to rules, regulation and intervention
of legal authorities. Further, new policies are helpful for entire country through which economy
becomes more flexible or dynamic. In this, sellers are free to sell whatever they want also expand
business in across the national border. On the other side, customers are free purchase whatever
they want and able to fulfil their demand as well. This concept provides total freedom to people
and they can spend life through which own way. It does not offer empirical evidence but able to
enhance religious faith. It is a systematic strategy which provide economic development and
maintain performance of all companies. Constitution is the biggest source of law for every
country. It consists of various types of rules and regulation which are imposed on different types
of organization. As every country is bound to comply with accordingly. Political decisions which
are taken by legal authorities are able to remove barriers related to international trade. Also
provide incentives to organizations 16. Such rules are able to provide assistance to developing
countries. Because developing countries are totally dependent on developed countries. Before
conducting import and export from one country to another companies have to obtain licence for
the same in order to maintain their performance and improve their sell. Also it promotes healthy
economic growth and development which required set of rules and regulation. This process can
reduce inequalities among people. It can change the situation of population and provide stable
market condition to them.
SESSION 2
Markets are the sets of social companies which is different form natural phenomenon.
Marketing of products and services has been consisting in commercial law. It involves some
rules and regulations which have to be followed by companies in order to maintain their
15 Nye Jr, J.S., 2010. The Futures of American Power-Dominance and Decline in
Perspective. Foreign Aff.. 89. p.2.
16 Peck, J. and Theodore, N., 2010. Mobilizing policy: Models, methods, and
mutations. Geoforum. 41(2). pp.169-174.
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performance across national boundaries 17. Members of such companies have to use their
collective efforts in order to attain their targets or objectives. On the other side, competition law
is able to reduce role of Cartel, restrict companies which hold dominant position in market for
the purpose to protect entire country, regulate freedom related to contract for the purpose of
protect this concept from self-abolition. Both types of laws such as competition and commercial
are considered as the core concepts of global economic constitution. After the process of
globalisation, World Trade Organisation is able to offer economic constitution which related to
global market 18. This concept is able to enhance free market process in which sellers are free to
produce and sell whatever they want. Also, buyers are free to consume things which are able to
fulfil their requirement. The increase or decrease of Neo-liberalism has been presented by neo-
liberal policies. Through this process, companies become able to explore their goods and
services in international market. Trade liberalization is the concept which was no longer related
to laissez-faire politics. WTO is able to maintain coordination among countries through which
members can easily transfer their goods and services in the international market. For this
purpose, companies have to frame trade agreement which is signed by them as well. It mentioned
lots of terms and conditions which have to be fulfilled by them 19. Thus, legal authorities are able
to maximize welfare of domestic consumers with the help of free trade agreements (Kshetri,
2010). Various types of rules and policies have been framed in this concept which can respect
and protect human rights as well as provide fundamental freedom to them. This is the biggest
reason of growth and development of country. Human rights help people to protect their interest.
This process is helpful to reduce inequalities among people and provide motivation to them. The
opportunities must be provided at the global level. It can enhance global economic life for the
purpose of development of entire country. There are various types of rights defined which are
related to this concept like-
17 Posner, R.A., 2014. Economic analysis of law. Wolters Kluwer Law & Business.
18 Rogerson, C.M. and Rogerson, J.M., 2010. Local economic development in Africa:
Global context and research directions. Development Southern Africa. 27(4). pp.465-480.
19 Sassen, S., 2010. The Global City: Strategic Site, New Frontier. Accumulation by
Dispossession: Transformative Cities in the New Global Order. pp.33-54.
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Relationship among human rights as well as trade law- Trade agreement is able to
maintain the relationship among both human and trade law 20. This is able to maintain the growth
and development of country. Legal rules protect such rights of people.
Labour- GATT is the legal term which is able to prohibit the members of countries for
import of goods and services. It is equally applied on domestic products. Members are not able to
import products and services which are produced by domestic countries.
Government Procurement- The effective rules are related to government procurement.
Such services are able to provide opportunity in order to develop position of human rights which
are based on the condition of procurement 21. These are consistent with WTO law. These kinds
of requirements are applied on the domestic suppliers. Through this, various types of obligations
have been imposed on them and they are bound to fulfil them.
Trade policy review- Member states of WTO are subjected to review the process in order
to examine regulation, policies as well as practices which are related to the promotion of free
trade policy. The objective or goal of trading system is not to enhance free trade policy but it
ensures to increase the rate of employment. It also contributes in sustainable development
programme positively 22. National trade policy needs to be examined in relation to meet the
required goals.
Settlement of dispute- Consideration which is related to human rights is having high
impact on dispute settlement. This concept consists of various types of policies, procedures and
rules which bound entire country to comply with such rules. Legal authorities define some rules
which are related with human rights to people 23.
Global free trade policy is able to maintain coordination among two or more states and
their performance as well. Before conducting import-export process, member countries have to
frame legal contract with others in order to maintain transactions in an effective manner. Such
20 Shutt, H., 2013. The trouble with capitalism: An enquiry into the causes of global
economic failure. Zed Books Ltd..
21 Taylor, P.J., Ni, P., Derudder, B., Hoyler, M., Huang, J. and Witlox, F., 2012. Global
urban analysis: A survey of cities in globalization. Routledge.
22 Wang, Y. and Lim, H., 2012. The global childhood obesity epidemic and the association
between socio-economic status and childhood obesity.
23 Young, I.M., 2010. Responsibility and global labor justice. In Responsibility in
Context (pp. 53-76). Springer Netherlands.
1

written document is considered as an evidence for them. The effective concept of GATT
provides proper satisfaction to multilateral trading process. Economic globalisation as well as
universal legal human rights; both are having power to enhance or improve community and
societies. Neo-liberalization is able to promote the concept of higher standard of living, reduce
rate of unemployment, maintain economic condition and provide development to social issues.
No discrimination is possible among people on the basis of sex, race, religion, place of birth and
nature. It consists of some rules which are able to promote human rights. These are basic rules
which vary from country to country. It can provide common standard of achievement to all
people as well as entire nation. The preamble of World Trade Organization agreement consists of
number of goals or objectives of WTO system which is related to obligation of human rights
especially economic and labour rights. GATT is the concept which allows members to protect
the morale of public. Sustainable development of country requires good governance which is
able to create sound economic policies, eradication of poverty as well as create or improve
growth rate of employment. Development is needed in order to reduce poverty, unemployment,
economic growth and much more. The effective provisions are considered as fundamental
improvement for human rights. Large number of people are dealing with the issues which are
related to human rights. Increasing rate of inequality related to both national and global level, so
that high profile legal cases are able to use in international agreement in order to challenge
various other countries.
On the other side, globalisation consists of recent trends of growth and development 24.
This concept makes entire country in modern way (Neoliberalism, higher education and the
knowledge economy: from the free market to knowledge capitalism, 2017). Large number of
people receive opportunities in order to grow in the international market. This concept refers to
free movement of products and services, capital, data and technologies from one country to
another. It is the effective process of integration between people, companies and legal bodies.
Rate of GDP, human development and industrialization are considered as components of
globalisation. Furthermore, rate of GDP refers to market value of all products and services which
are produced within the boundaries of country. It is having a huge impact on the development or
growth of nation.
24 Zalik, A., 2010. Oil ‘futures’: Shell’s Scenarios and the social constitution of the global
oil market. Geoforum. 41(4). pp.553-564.
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