| dc.description.abstract | This chapter provides an elaborate exposition of the law and its application bridging the gap
between markets and in so doing enables them to co-exist in fostering desired markets discipline
and stability. The term law can used to connote many things, for this reason, the law used to refer
to the rules governing global markets. The law in its varied contexts is a subset of politics and
therefore whether one is talking of market rules or the law in other respect, the law is a reflection
of prevailing political climate in a country and other regulatory domains. The analysis of the law
and its usage in regulation of global markets will be limited to interstate agreements adopted by
states to govern global markets such as the WTO, IMF and the World Bank and other oversight
institutions. The market can be understood in the context of emerging regional initiatives such as
the EAC, the WTO rules and those engendered by other supranational initiatives. It is an
inescapable fact that the relationship between states and markets is complimentary and mutually
reinforcing to the extent that when the market sneezes, the state catches the cold literally speaking.
What remains sacrosanct is that there is no market without the state and vice versa, meanwhile,
they both need the law as a bridge to co-exist in their respective regulatory domains. The law helps
to create the space where markets and states work together harmoniously without overlapping
each other’s regulatory roles. The author has drawn examples from the East African Community
and the European Union member countries to tease the relationship between states and markets
(which are literally two sides of the same coin). The irony however is that most of global regulatory
regimes are evolved at the periphery of the State, (for example in Brussels for the case of EU
Countries) but implemented within the state. The foregoing challenge tends to create
tensions/challenges in implementation of engendered market rules conflict with the constitutional
mandate of sovereign states. Desired market rules are evolved either at a regional level such as the
East African Community (EAC) or the European Union (EU) or at a global level such as the WTO
oversight rules on trade. It worth noting that while the State has seemingly been emasculated by
proliferating regional groupings, it still calls the shots and as such dictates the pace at which ratified
treaties can be implemented and hence dictate the effectiveness of engendered global market
initiatives. A good case in point is the recently concluded Brexit in EU whereby the United
Kingdom invoked Article 50 of Lisbon Treaty (2009) and quit the EU.2 Thus, the ability of states
to implement their international obligations often depends on the goodwill and the prevailing
political climate within a state. The challenge has been that states have been emasculated by ceding
constitutional powers to regional markets in areas erstwhile within its exclusive domain where it
needs to have a strong presence. For examples, important laws on immigration control in Europe
are decided in Brussels (the periphery of states) but implemented within member’s states
notwithstanding the far reaching ramifications this has on member states in terms of jobs, housing
and other social services provisions within a state. | en_US |
