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Introduction and editorial preface1

Michael Faure and André van der Walt1

1 Problem definition and reasons for this book1

1.1 Lawmaking in a globalized world2

1.2 Convergence, divergence, accountability and legitimacy3

1.3 Who sets the agenda?4

2 History and origins of this book4

3 Methodology6

3.1 Legal multidisciplinarity6

3.2 Comparative approach7

3.3 Multidisciplinarity7

4 Topics7

5 Central focus10

6 Structure of this book10

7 Contributors11

8 Acknowledgements11

References12

PART Ⅰ GLOBALIZATION, DEMOCRACY AND ACCOUNTABILITY15

1 Democracy and (European) private law: a functional approach&Jan Smits15

1 Introduction15

2 Law without a state: a problem of democracy?17

3 Deconstructing democracy19

4 The legitimacy of the draft CFR22

4.1 Accountability: legitimacy through jurisdictional competition23

4.2 Participation: the experience with optional instruments24

4.3 Private law: design or organism?25

5 Conclusions27

References28

2 Public accountability of transnational rule making:a view from the European Union and beyond&Deirdre Curtin32

1 Introduction32

2 Shifts in transnational governance: actors, instruments and levels33

2.1 Multi-level governance33

2.2 Actors34

2.3 Instruments39

2.4 Levels40

3 Approaches to legitimacy and democracy of transnational governance41

3.1 Approaches to understanding legitimacy in the EU41

3.2 Understanding and conceptualizing (EU) 'democracy'44

4 Conceptualizing and applying public accountability45

4.1 Accountability relationships45

4.2 Accountability as a virtue47

4.3 Accountability as a social relationship49

5 Concluding remarks50

References52

PART Ⅱ HARMONIZATION VERSUS DECENTRALIZATION57

3 Private law in a globalizing world: economic criteria for choosing the optimal regulatory level in a multi-level government system&Roger Van den Bergh57

1 Introduction57

2 Heterogeneity of preferences59

3 Decentralized information and innovation62

4 Interstate externalities63

5 Scale economies, transaction cost savings and the elimination of trade barriers65

5.1 The size of the cost savings66

5.2 Does harmonization advance market integration?68

6 Regulatory competition69

6.1 The level playing field argument70

6.2 Different types of regulatory competition72

6.3 Race to the bottom or race to the top: theoretical work and empirical evidence75

7 A public choice perspective77

8 Lessons for globalization of private law80

8.1 Interstate externalities81

8.2 Regulatory competition84

8.3 Cost savings85

8.4 Benefits of decentralization89

9 Conclusions91

References93

4 Globalization and harmonization of international trade law&Sieg Eiselen97

1 Introduction97

2 A brief history of trade law harmonization: the Vienna Convention for the International Sale of Goods, 1980 (CISG)100

3 Different methods of achieving harmonization106

3.1 Introduction106

3.2 Instruments employed to achieve harmonization107

3.2.1 Formal instruments - conventions107

3.2.2 Soft law instruments - model laws or model codes open for adoption by countries111

3.2.3 Soft law instruments- voluntary codes open for adoption by individual commercial parties113

3.3 Agents and their methods of harmonization114

3.3.1 UNCITRAL114

3.3.2 The International Chamber of Commerce (ICC)119

3.3.3 Unidroit123

3.3.4 World Customs Organization125

4 Conclusion127

References129

Conventions129

Legislation129

Case Law129

Bibliography131

List of websites accessed136

PART Ⅲ PUBLIC LAW139

5 The relation between private law and administrative law in view of globalization&Frits Stroink139

1 The true nature of administrative law139

2 Contracts between the administration and the citizen140

3 Administrative law and globalization141

3.1 The principle of legality142

3.2 Principles of proper administration142

3.3 Supervision by a judge143

4 Conclusion143

References144

6 Beyond parochialism? Transnational contextualization in constitutional interpretation in South Africa (with particular reference to jurisprudence of the Constitutional Court)&Lourens du Plessis145

1 Introductory observations and explanations145

2 Gateway(s) to the 'transnational context'147

2.1 Section 39 and the Makwanyane Guidelines147

2.1.1 The first guideline148

2.1.2 The second guideline (and the 'framework dictum')149

2.1.3 The third guideline149

2.2 'Transnational contextualization'150

3 International law151

3.1 International law, globalization and South Africa's 'new constitution'151

3.2 'Binding' and 'non-binding' international law154

3.3 Looking critically at the framework dictum in Makwanyane155

3.4 The framework dictum compromised? -AZAPO156

3.5 Back to the framework: Grootboom158

3.6 Some other judgments significant for engagement with international law in constitutional interpretation160

3.7 An underused presumption162

3.8 Travaux préparatoires in constitutional interpretation - an example of international law 'making' domestic constitutional law164

3.9 Conclusions pertinent to the role of international law165

4 Foreign law and constitutional comparativism168

4.1 Constitutional comparativism: believers and disbelievers168

4.2 The demonstrable value and advantages of constitutional comparativism173

4.3 Conclusions pertinent to constitutional comparativism175

5 General conclusions178

References179

Cases179

Bibliography180

7 Globalization, state commercial activity and the transformation of administrative law&Geo Quinot183

1 Introduction183

2 'State commercial activity'186

3 Applicable norms187

4 Enforcement of norms193

5 Private and public in law and social practice201

6 Conclusion203

References204

PART Ⅳ CORPORATE GOVERNANCE211

8 Globalization: selected developments in corporate law&Bas Steins Bisschop211

1 Introduction211

2 The VOC: history and present213

2.1 Foundation of the VOC213

2.2 'Act of magic'214

2.3 Shareholders' rights in relation to the corporate organization215

2.4 Conclusion216

3 The BRIC countries217

3.1 Brazil217

3.2 Russia218

3.3 India219

3.4 China220

3.5 Conclusion222

4 The corporation and its stakeholders222

4.1 The main players in the corporate organization223

4.2 Shareholder and stakeholder models223

4.3 Convergence between these models?224

4.4 The enlightened shareholder model227

4.5 Corporate social responsibility228

4.6 Corporate interest229

4.7 Conclusion229

5 Challenges to the global corporate system230

5.1 The systematic threat posed by the credit crunch230

5.2 The threat posed by hedge funds232

5.3 The threat posed by bookkeeping scandals232

5.4 Other possible threats233

5.5 Reflex responses to the threats, and conclusion234

6 The limitations of legal remedies in the resolution of crises236

6.1 Ex Post and hindsight-biased judgments236

6.2 Confusion238

6.3 No surprise, really240

6.4 Further observations241

6.5 Conclusion243

7 Supporting legal remedies in the resolution of crises243

7.1 Some further comments on the efficiency of regulation244

7.2 Transition245

7.3 The South African Truth and Reconciliation Commission247

7.4 Amnesty248

8 Bringing together regulation, supervision, confidence and the TRC249

8.1 Intermediate conclusion249

8.2 The association with the TRC250

8.3 Recommendation250

References251

9 Globalization and corporate law&Philip Sutherland255

1 Introduction255

2 What is globalization?255

3 Globalization, corporate law and multinational corporations265

4 Corporate law theory271

5 What form should corporate regulation take in the globalized world?283

5.1 Regulation in national law284

5.2 Convergence of national corporate laws290

5.3 International rules298

6 Alternative systems for constraining the activities of global corporations299

6.1 A system of competing rules300

6.2 The establishment of constraints outside traditional law302

6.2.1 International institutions304

6.2.2 Self-regulation by MNCs317

6.2.3 Non-governmental organizations321

6.2.4 Tightly knit multi-stakeholder networks323

6.2.5 Conclusions regarding the restraining of the activities of MNCs outside traditional law326

Conclusion328

References330

Legislation, Codes and Reports330

Cases333

Books333

Journal articles334

Websites339

PART Ⅴ PROCEDURAL ISSUES343

10 Civil procedure in a globalizing world&Remco van Rhee343

1 Introduction343

2 Law reform at the national level345

3 Competition between national systems of civil procedure348

4 Harmonization of procedural law on an international and a global scale350

4.1 The Storme Report: harmonization on a European scale350

4.2 The principles of transnational civil procedure and harmonization on a worldwide scale357

5 Final remarks361

References362

PART Ⅵ HUMAN RIGHTS AND THE ENVIRONMENT367

11 Fundamental rights in private law: anchors or goals in a globalizing legal order?&Siewert Lindenbergh367

1 Human rights in private law367

2 Four illustrations369

2.1 The B?rgschaft case369

2.2 The case of Wiebke Busch370

2.3 The Traveller case: limitation of liability371

2.4 The Pye case: deprivation of possession, or not?372

3 Bridging the traditional dichotomy between private law and public law373

4 The added value of a fundamental rights approach in private law376

5 Constitutional and/or supranational courts as driving forces377

6 Issues in relation to globalization377

7 A different perspective: private law as a tool for protection of fundamental rights379

8 Concluding remarks380

References381

12 Globalization and multi-level governance of environmental harm&Michael Faure383

1 Introduction383

1.1 Starting point383

1.2 Challenges384

1.3 General background385

1.4 Structure386

2 Influence of environmental issues on globalization: positive analysis387

2.1 Increase of transboundary pollution387

2.2 Increased mobility of products and services388

2.3 Lowering environmental quality?390

3 Influence of environmental issues on globalization: normative analysis392

3.1 Multi-level governance392

3.2 Shift of governance for local pollution?394

3.2.1 Danger of a race to the bottom?395

3.2.2 The trade-environment dispute396

3.3 Mobility of products, firms and services399

4 Influence of globalization on (private) environmental law: positive analysis400

4.1 Institutional400

4.2 Procedural401

4.2.1 Integration of various legal spheres401

4.2.2 Effect of international law on private law402

4.2.3 Effect on public participation403

4.2.4 Tendency toward consensual solutions?404

4.3 Contents405

5 Influence of globalization on (private) environmental law: normative analysis406

5.1 Institutional406

5.1.1 Lawmaking beyond the nation state406

5.1.2 Victim and environmental protection doubtful407

5.1.3 Green treaties or protectionism?409

5.1.4 Limited public participation410

5.1.5 Shift problematic411

5.1.6 Possible remedies411

5.2 Procedural412

5.2.1 Distinction international-national becomes blurry412

5.2.2 Successful bargaining?413

5.3 Contents: differentiation of standards414

6 Contribution of environmental law to the globalization debate415

6.1 Environmental issues that shape the globalization debate415

6.2 Influence of globalization of environmental private law415

6.3 Many unresolved issues ...416

6.4 ... Need multidisciplinary research!417

References417

13 The rule of law and judicial activism: obstacles for shaping the law to meet the demands of a civilized society, particularly in relation to climate change?&Jaap Spier426

1 The nemesis of climate change427

2 A call for legal activism in the field of climate change?427

3 Judicial activism: a brief introduction428

4 A closer look430

5 A few examples437

5.1 Dutch cases I437

5.2 A slippery slope439

5.3 Dutch cases Ⅱ440

5.4 The human rights perspective441

5.5 Compelling requirements of equity441

5.6 French, Belgian and Italian cases442

5.7 Hard cases on the edge of moral443

5.8 Non-European cases443

5.9 The struggle between judiciary and legislator444

5.10 Historical wrongs445

5.11 Climate change litigation446

6 Legislator and judiciary446

7 Interim conclusion447

8 Back to climate change and other topics of truly significant importance448

References451

PART Ⅶ COMPARATIVE CONCLUSIONS457

14 Comparative and concluding remarks&Michael Faure and André van der Walt457

1 Lawmaking beyond the nation state457

2 Reaction to globalization by private actors460

3 Regulation and control461

4 Private-public law461

5 Convergence, divergence, harmonization463

6 Reinstalling legitimacy and accountability464

7 Procedural issues465

8 Remaining issues and challenges466

References467

Index469