Essay on the Development and Evolution of International Trade and Economic Law in the Pre-and Post-World War.
Pre-world war period:
Pre-world war period was the period of colonialism and imperialism. The most important motive of imperialism and colonialism was trade gain. The great industrial nations of Europe needed colonies to supply them the raw-material. European nations embarked upon imperialism for the sake of both finding out the markets for their surplus goods and for the loot.
The European nations needed imperialism for the sake of investment of their surplus capital in virgin fields to enjoy monopoly. The European nations embarked upon imperialism for the sake of strategic raw-materials like oil and iron and markets for their products.
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Before the second world war the whole world was domited or under the colonial power of Spanish, Portuguese, Dutch, French, Italian, German and British.
At the end of the First World War the League of Nations was established at Geneva (Switzerland) and started functioning from January 10, 1920. It was considered as the first international organisation.
In the economic sphere the League set up a number of financial and economic committees constituting experts from various countries. These committees played a commendable role in tackling the problem of counterfeiting falsification of commercial documents, double taxation etc., This committee organised a number of international conferences like World Economic Conference (1927). Monetary and Economic Conference (1933).
The financial committee was responsible for the issue and supervision of leagues’ loans to Austria, Hungary, Greece and other countries. A general financial conference was held in Brussels (1920), in Geneva (1927) and in London (1933) to help nations in the field of financial relations.
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When Austria was on the point of economic collapse in 1921-22, the League of Nations arranged an international loan and helped the country’s economic recovery. Similar help was given to Bulgaria and other countries also. The League established international conventions with regard to customs, export of certain commodities etc.
The League had set up an autonomous communication and transit organisation in 1920. It tried to simplify procedures to facilitate passengers’ travelling and goods transporting internationally. A model passport was introduced for general use throughout the world.
It recommended agreements with regard to transport in international rivers, maritime signals, the lighting of coasts and road traffic. It insisted on free international communications, free international transit etc.
The League tried hard to improve a lot of working people through the International Labour Organisation (ILO). It also tried to remove slavery. For the abolition of slavery, the League set up permanent Slavery Commission in 1932. It achieved much in the field of control of business in dangerous drugs like opium, and hashish etc., prohibition on traffic and women transporting, promotion of child welfare, suppression of trade in obscene literature etc.
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The League setup a Health Organisation in 1923 with a Health Committee and a secretariat. The committee for International Co-operation was also established by the League to provide a cultural and intellectual co-operation among nations.
The League of Nations had undertaken several legal activities, like a large number of international agreements and conventions. An attempt was made to codify the laws relating to nationality, territorial waters, state responsibilities etc.
However, no member of the League was prepared to stake its own national interests for the sake of greater international interests. Even some members did not hesgitate to violate the League Covenants for the sake of their narrow national interests. In short, the totalitarian states were more responsible for the destruction of international co-poration under the League than the liberal states.
The dominant Britain insisted for free trade and started to dump the industrial manufactured goods in other countries. Germany followed the policy of ‘Protectionism’ to protect their infant industries and also the other countries followed the same path. The League became weak and could not prevent the outbreak of wars or the invasions on one country by another.
The second world war came to an end with the post dam conference which was held from July 17, 1945 to August, 2, 1945 In the far East the war ended with the drop of two bombs, first atom bomb on Hiroshima on August, 6, 1945 and the second atom bomb on Nagasaki on August 9, 1945 then the Japan’s surrender was on August 10, 1945.
Post-world war period:
Even after the end of Second World War, there existed the old order of the world, which is based on colonialism, imperialism and hegemonies. Though many countries got political independence, there existed the worst economic disorder and a wide economic inequality between the North and the South. The then existing (old) orders had the following characteristics which were benefited to the North (developed countries) and were disadvantageous to the South (under-developed countries):
(1) There was the substantial imbalance in the distribution of international monetary reserves.
(2) The North got benefited in the distribution of the value added to the products traded between themselves and the South.
(3) In order to protect and perpetuate the profits and jobs in both the uncompetitive and the declining sectors of their economics, the North typically protected its inefficient domestic industries by restricting the immigration to maintain high wages.
(4) By diplomatic negotiations those Multi National Companies (MNCs), got unfairly benefited by the concessions and the leases at the cost of the under developed countries (The South).
(5) When it was coming to the critical economic decisions that affecting the working of the world economy, the south had only a proforma participation in the decision-making process where as the North played a dominant role in key decisions.
(6) The terms of trade between the North and the South were designed in such a way to be benefited to the North. The finished and consumable goods produced by the North were priced at a very high rate. In contrast, the prices of the raw-materials exported by the South were very low and that had resulted in creating high imbalance in the trade relations.
(7) The South had to depend on the North for their programmes of national development and the aid given by the North to the South was neutralized due to the element of imbalance, and it flown back in the shape of trade deficits and the dues payments.
(8) The International Bank for Reconstruction and Development (World Bank) provided loans to the South for the economic growth and it becomes a burden upon them due to a very low rate of their growth. Sometimes the loan was taken just to pay the interest to be paid for the previous amounts of loan received.
(9) The North, through the GATT Agreements displayed a tendency of protectionism under which the trade interests of the North are protected against the South.
(10) Certain preferential trade blocs such as European Economic Community (EEC) etc. have been created by the North to enable them to shelter under protection which harm the South.