Dialectics on International Legal Regime in Sovereign Debt Crisis

Abstract

Developed world draws cold feet2 in taking TRIMS to its logical trends. But in order to ensure global development m the ordinary course of economic rational the low-end secondary industry3 has to be relocated or at least out-sourced to the developing world while the developed world to take a strategical position in the high-end industrial products and services. It is not economically rational to carried on in the developed world with high subsidy under the protection of tariff or non-tariff barrier as well as preventing industrial outsourcing especially when primary sector is not open due to various reasons both of locational (economic) and political compulsion. This is not only against the dynamics of industrial civilization but is also against the philosophy of GATT.4 Developed world have more comparative strength to relocate the human resources in the high-end industrial enterprises and in services. Any backtrack of the developed world may endanger its own industrial capitalism.5 It is true that the developed world argue for a compatible legal order to facilitate the investment flow in the developing world by way of natural consequence of industrial dynamics. A trustworthy economic and legal system would be albeit necessary for rapid investment-flow across the world. One of the important limbs in the total 'system structure' for facilitating the quick flow of investment is a trustworthy and efficient sovereign debt crisis management mechanism.