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Resolving the Question of Inter-Scalar Legitimacy into Law? A Hard Look at Proportionality Balancing in Global Governance

Published online by Cambridge University Press:  20 September 2018

Abstract

In this article, I examine the attempt to apply proportionality balancing (PB) to the co-ordination of the relations between governance regimes, which I call ‘inter-scalar PB’, from the perspective of competing institutional arrangements of global governance. Observing inter-scalar PB becoming a legal technique of management, I argue that it be reconceived as a narrative framework within which the fundamental values and principles of individual governance regimes can be politically contested without antagonism. I first discuss the role PB has played in the interaction between the law of state immunity and international investment law and then take a closer look at the features of inter-scalar PB as intimated in those instances: simplism, normativism, institutionalism and legalism. I suggest that the complex fundamental issues concerning the relationship between governance regimes are left out in the proportionality analysis-mediated resolution of regime-induced conflicts, disclosing the depoliticization tendency in inter-scalar PB. Juxtaposing it with the indicator project in international human rights advocacy, I conclude that both are jurispathic and reflect the rationalist propensity in the legal administration of global governance. PB, reconceived as a language in which values, conflicts, and interests of each governance regime can be argued and narrated as part of the politics of reconstructing global governance, will help to recast global governance in more jurisgenerative terms.

Type
INTERNATIONAL LEGAL THEORY
Copyright
© Foundation of the Leiden Journal of International Law 2018 

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Footnotes

*

Associate Professor, University of Warwick School of Law, UK; JSD, LLM, Yale Law School; LLM, LLB, National Taiwan University [[email protected]]. The ideas in this article were first presented at the ‘Symposium on Scaling Global Governance’ organized by the Institute of Advanced Studies at Durham University. This article has benefited from comments from the participants in the ‘Legitimacy Across Scales’ panel discussion at the same symposium. I am grateful to both anonymous reviewers for their critical comments and helpful suggestions. Surabhi Ranganathan’s editorial help is also heartily acknowledged. The usual disclaimer applies. Comments are welcome.

References

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21 This is what I call regime-induced conflicts. See note 35, infra. But cf. Crawford and Nevill, supra note 13, at 247, 259.

22 See Section 2, infra.

23 To avoid confusion, I interchangeably use the terms ‘inter-scalar PB and the ‘inter-scale of PB’ when referring to the exercise of PB in resolving regime-induced conflicts.

24 See Somek, A., Individualism (2008), 140–3, 235–8CrossRefGoogle Scholar. Cf. Supiot, A., Governance by Numbers: The Making of a Legal Model of Allegiance (translated by S. Brown, 2017), 42–4, 49–51Google Scholar.

25 See text at notes 159–60, infra.

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31 Young, supra note 3, at 11.

33 Compare Fischer-Lescano and Teubner, supra note 4, at 1000–1, with Dunoff, supra note 5, at 139. For a much more restrictive, territory-based understanding of regimes, see Crawford and Nevill, supra note 13, at 259.

34 Along the same line, Crawford and Nevill seem to use regime conflict and rule conflict interchangeably. See Crawford and Nevill, supra note 13, at 236.

35 For this reason, a conflict between a special legal regime and general international law is still one induced by the emergence of the former, although the latter is not considered a regime in legal scholarship. See ibid., at 259. I use regime-induced conflicts rather than regime conflicts to include conflicts between regimes and those between a special legal regime and general international law.

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40 See Möller, supra note 19, at 179–205.

41 See generally Alexy, R., A Theory of Constitutional Rights (translated by J. Rivers, 2002Google Scholar). See also Stone Sweet and Mathews, supra note 19, at 88–90; Somek, supra note 24, at 149; Cohen-Eliya and Porat, supra note 38, at 16–23; Barak, A., Proportionality: Constitutional Rights and Their Limitations (2012), 340, 378Google Scholar. Cf. Bomhoff, J., Balancing Constitutional Rights: The Origins and Meanings of Postwar Legal Discourse (2013), 18–19CrossRefGoogle Scholar. But cf. Grimm, supra note 19, at 393–7. For the centrality of balancing to Robert Alexy’s discussion of proportionality analysis, see Petersen, N., Proportionality and Judicial Activism: Fundamental Rights Adjudication in Canada, Germany and South Africa (2017), 45–7CrossRefGoogle Scholar. This formula of weighing also applies to the situation in which rights are in conflict. See Barak, ibid., at 342.

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43 Stone Sweet and Mathews, supra note 19. See also Möller, supra note 19.

44 See Kumm, M., ‘The Idea of Socratic Contestation and the Right to Justification: The Point of Rights-Based Proportionality Review’, (2010) 4 Law and Ethics of Human Rights 141CrossRefGoogle Scholar. See also Möller, supra note 19.

45 I shall come back to the concept of translation in Section 3, infra.

46 M. Antaki, ‘The Rationalism of Proportionality’s Culture of Justification’, in Huscroft, Miller, and Webber (eds.), supra note 19, at 284, 291–4. See also Klatt, M. and Meister, M., The Constitutional Structure of Proportionality (2012), 812CrossRefGoogle Scholar. But cf. Somek, supra note 24, at 143, 149.

47 For the cultural evocations of mathematical objectivity surrounding the idea of proportionality, see Supiot, supra note 24, at 75–7.

48 Kingsbury, supra note 18, at 55–6.

49 Ibid., at 55.

50 See also Joerges, C., ‘Unity in Diversity as Europe’s Vocation and Conflicts Law as Europe’s Constitutional Form’, in Nicke, R. and Greppi, A. (eds.), The Changing Role of Law in the Age of Supra- and Transnational Governance (2014), 127–76Google Scholar; Watt, H. Muir, ‘Conflicts of Laws Unbounded: The Case for a Legal-Pluralist Revival’, (2016) 7 Transnational Legal Theory 313CrossRefGoogle Scholar; Krisch, N., Beyond Constitutionalism: The Pluralist Structure of Postnational Law (2010), 12, 295–6Google Scholar.

51 E.g., Guntrip, E., ‘International Human Rights Law, Investment Arbitration and Proportionality Analysis: Panacea or Pandora’s Box?’, EJIL: Talk!, 7 January 2014, available at www.ejiltalk.org/international-human-rights-law-investment-arbitration-and-proportionality-analysis-panacea-or-pandoras-box/ (accessed 23 July 2018)Google Scholar; Finke, J., ‘Regime-collisions: Tensions Between Treaties (and How to Solve Them)’, in Tams, C.J. et al. (eds.), Research Handbook on the Law of Treaties (2016), 415Google Scholar.

52 See T. Endicott, ‘Proportionality and Incommensurability’, in Huscroft, Miller, and Webber (eds.), supra note 19, at 311.

53 Schill, supra note 26, at 108.

54 See, e.g., Saluka Investments BV v. The Czech Republic, UNCITRAL, Partial Award (17 March 2006), para. 306; Joseph C Lemire v. Ukraine, ICSID Case No. ARB/06/18, Decision on Jurisdiction and Liability (14 January 2010), para. 285; Total SA v. The Argentine Republic, ICSID Case No. ARB/04/01, Award (8 December 2010), para. 123; El Paso Energy International Company v. The Argentine Republic, ICSID Case No. ARB/03/15, Award (31 October 2011), paras. 241–3, 365–74. For further commentary on these cases, see Schill, supra note 26, at 107; Sweet, A. Stone and Grisel, F., The Evolution of International Arbitration: Judicialization, Governance, Legitimacy (2017), 198203Google Scholar. See also Henckels, C., Proportionality and Deference in Investor-State Arbitration: Balancing Investment Protection and Regulatory Autonomy (2015)CrossRefGoogle Scholar. Cf. Kingsbury, B. and Schill, S.W., ‘Public Law Concepts to Balance Investors’ Rights with State Regulatory Actions in the Public Interest—The Concept of Proportionality’, in Schill, S.W. (ed.), International Investment Law and Comparative Public Law (2010), 75CrossRefGoogle Scholar; Mouyal, L.W., International Investment Law and the Right to Regulate: A Human Rights Perspective (2016), 31–6CrossRefGoogle Scholar.

55 This is mostly obvious in the investor-state arbitration. Notably, Alec Stone Sweet and Florian Grisel suggest the application of PB in international commercial arbitration when arbitrators need to enforce mandatory law and public policy. See Stone Sweet and Grisel, supra note 54, at 172–86.

56 Ibid., at 197–8, 244–5.

57 Cf. VanDuzer, J.A., ‘Sustainable Development Provisions in International Trade Treaties: What Lessons for International Investment Agreements?’, in Hindelang, S. and Krajewski, M. (eds.), Shifting Paradigms in International Investment Law: More Balanced, Less Isolated, Increasingly Diversified (2016), 142 at 173CrossRefGoogle Scholar.

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60 Kulick, A., Global Public Interest in International Investment Law (2012), 258–9CrossRefGoogle Scholar. But cf. Stone Sweet and Grisel, supra note 54, at 245–6.

61 Schill, supra note 26.

62 Ibid., at 91–101.

63 Ibid., at 89–90, 104–5.

64 ‘Nothing in Art. 54 shall be construed as derogating from the law in force in any Contracting State relating to immunity of that State or of any foreign State from execution.’ Art. 55 of the ICSID Convention. Although ‘execution’ is chosen for the purpose of Art. 55, which is thus distinguished from both Arts. 53 and 54 where ‘enforce’ and ‘enforcement’ are adopted, Andrea K. Bjorklund suggests that their meanings are identical when it comes to the attachment of the respondent host state’s property. Bjorklund, A.K., ‘State Immunity and the Enforcement of Investor-State Arbitral Awards’, in Binder, C. et al. (eds.), International Investment Law for the 21st Century: Essays in Honour of Christoph Schreuer (2009), 302 at 306CrossRefGoogle Scholar.

65 Bjorklund notes that the provision for the enforcement of arbitral awards ‘in accordance with the rules of the procedure of the territory where the award is relied on’ in Art. III and the public policy exception in Art. V(2)(b) are susceptible to the interpretation that state immunity from enforcement is unaffected, despite variations on state practice. Ibid., at 308–9.

66 As the scope of the ICSID Convention is narrower, some investor-state arbitrations have to rely on the New York Convention for the enforcement of the award. See ibid., at 308.

67 See also ibid., at 321. Cf. Stone Sweet and Grisel, supra note 54, at 2–3.

68 See Priem, C., ‘International Investment Treaty Arbitration as a Potential Check for Domestic Courts Refusing Enforcement of Foreign Arbitration Awards’, (2014) 10 New York University Journal of Law &. Business 189, at 196–217Google Scholar; Annacker, C., ‘Investment Treaty Arbitration as a Tool to “Enforce” Arbitral Awards?’, Global Arbitration Review, 16 November, 2014Google Scholar.

69 The awards Schill discusses include Desert Line Projects LLC v. Republic of Yemen (ICSID Case No. ARB/05/17, Award, 5 February 2008), Saipem SpA v. People’s Republic of Bangladesh (ICSID Case No. ARB/05/7, Award, 30 June 2009), and Chevron Corporation (USA) and Texaco Petroleum Company (USA) v. The Republic of Ecuador (PCA Case No. 34877, UNCITRAL, Partial Award on the Merits, 30 March 2010). Schill, supra note 26, at 104–5.

70 Ibid., at 104–5.

71 See cases cited at note 54, supra.

72 Schill, supra note 26, at 106–8.

73 See ibid., at 105–6.

74 Schill also acknowledges this discrepancy. Ibid.

75 See Born, G., ‘A New Generation of International Adjudication’, (2012) 61 Duke Law Journal 775, at 831–44Google Scholar.

76 See B. Simma and T. Kill, ‘Harmonizing Investment Protection and International Human Rights: First Steps Towards a Methodology’, in Binder et al., (eds.), supra note 64, at 678, 682–91. See also Mouyal, supra note 54, at 47–65.

77 See Simma and Pulkowski, supra note 3, at 498–500. Cf. Roberts, A., ‘Triangular Treaties: The Extent and Limits of Investment Treaty Rights’, (2015) 56 Harvard International Law Journal 353, at 363Google Scholar.

78 Schill, supra note 26, at 96–8, 102–8.

79 See Schreuer, C., ‘Interaction of International Tribunals and Domestic Courts in Investment Law’, in Rovine, A.W., Contemporary Issues in International Arbitration and Mediation: The Fordham Papers (2010), 71, at 84–6Google Scholar. In this light, a parallel can be drawn between the municipal court of the forum state and ‘distributed administration’ in global administrative law, which means ‘domestic regulatory agencies’ that ‘act as part of the global administrative space’ and ‘take decisions on issues of foreign or global concern’. See Kingsbury, Krisch and Stewart, supra note 3, at 21–2.

80 Schill, supra note 26, at 112–15.

82 Ibid., at 117–18. The result is likely to move in the direction of what has been called the ‘restrictive theory of immunity’. See Bjorklund, supra note 64, at 304.

83 Born, supra note 75, at 831.

84 See note 41 and accompanying text, supra.

85 Michaels and Pauwelyn, supra note 13, at 356.

86 Ibid., at 368.

87 I shall further address the issues surrounding the question of applicability in Section 4, infra.

88 See text at note 45, supra.

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101 Even when issues concerning the law of state immunity are brought up before the investor-state arbitral tribunal, they are likely to be subsumed under the concept of the host state’s right to regulate, although it is more of sovereignty than right. Cf. Mouyal, supra note 54, at 79–80.

102 For the idea of global administration and its role in the analysis of global governance, see Kingsbury, Krisch and Stewart, supra note 3, at 18–27.

103 See also Simma and Pulkowski, supra note 3, at 490–4.

104 Kingsbury, supra note 18, at 56.

105 Ibid., at 55–6; Kingsbury, B., ‘International Law as Inter-Public Law’, in Richardson, H.S. and Williams, M.S. (eds.), Moral Universalism and Pluralism: NOMOS XLIX (2008), 167 at 190–1Google Scholar.

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109 Alexy, supra note 41, at 102–7.

110 Ibid., at 408–10.

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114 Kuo, supra note 106, at 1000–1.

115 See Bloodgood, E.A., ‘The Interest Group Analogy: International Non-Governmental Advocacy Organisations in International Politics’, (2011) 37 Review of International Studies 93CrossRefGoogle Scholar. See also Kuo, M.-S., ‘(Dis)Embodiments of Constitutional Authorship: Global Tax Competition and the Crisis of Constitutional Democracy’, (2009) 41 George Washington International Law Review 181, at 229–31, 239–40Google Scholar.

116 See also Fischer-Lescano and Teubner, supra note 4, at 1002–3.

117 Kuo, supra note 112, at 1067–72. Cf. Rosanvallon, supra note 1, at 260–3.

118 See Somek, A., The Cosmopolitan Constitution (2014), 264–6, 272–3CrossRefGoogle Scholar.

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120 McGrogan, supra note 119, at 393–7.

121 Donnelly, J., ‘The Virtues of Legalization’, in Meckled-Garcia, S. and Çalı, B. (eds.), The Legalization of Human Rights: Multidisciplinary Perspectives on Human Rights and Human Rights Law (2006), 61 at 63–5Google Scholar.

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124 See Neumayer, E., ‘Do International Human Rights Treaties Improve Respect for Human Rights?’, (2005) 49 Journal of Conflict Resolution 925CrossRefGoogle Scholar.

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126 Ibid., at 213–27.

127 Donnelly, supra note 121. Compare Hathaway, O.A., ‘Do Human Rights Treaties Make a Difference?’, (2002) 111 Yale Law Journal 1935, at 2006–7CrossRefGoogle Scholar, with Goodman, R. and Jinks, D., ‘Measuring the Effects of Human Rights Treaties’, (2003) 14 EJIL 171CrossRefGoogle Scholar.

128 McGrogan, supra note 119, at 388.

129 Ibid., at 399.

130 See ibid., at 399–401 (quoting Davis, K.E., Kingsbury, B. and Merry, S.E., ‘Indicators as a Technology of Global Governance’, (2012) 46 Law and Society Review 71, at 81)CrossRefGoogle Scholar.

131 See K.E. Davis, B. Kingsbury, and S.E. Merry, ‘Introduction: Global Governance by Indicators’, in Davis et al. (eds.), supra note 119, at 3.

132 Alain Supiot notes the age-old ‘fascination with numbers and their systematising powers’ as a counter to the man-made law that is susceptible to arbitrary will. Non-human law can take different forms in different periods of history. In ancient times, the law of nature that embodies the harmony of the cosmos is one example. See Supiot, supra note 24, at 67–73.

133 M. Kumm and A.D. Welen, ‘Human Dignity and Proportionality: Deontic Pluralism in Balancing’, in Huscroft, Miller and Webber (eds.), supra note 19, at 67, 69–70. See also Luterán, supra note 19, at 29–41.

134 Gaus, G.F., ‘Public Reason and the Rule of Law’, in Shapiro, I. (ed.), The Rule of Law: NOMOS XXXVI (1994), 328Google Scholar. For the embeddedness of proportionality in law, see Luterán, supra note 19, at 23–9.

135 McGrogan, supra note 119, at 397. For the rationalist propensity in proportionality balancing, see Antaki, supra note 46.

136 See also F. Schauer, ‘Proportionality and the Question of Weight’, in Huscroft, Miller and Webber (eds.), supra note 19, at 173, 173–4. For the intellectual roots of this development, see Supiot, supra note 24, at 78–120.

137 McGrogan, supra note 119, at 392 (quoting M. Oakeshott, Rationalism in Politics and Other Essays (1962), 1, 6).

138 McGrogan, supra note 119, at 408.

139 For the perceived scientific character of proportionality and balancing, see Aleinikoff, T.A., ‘Constitutional Law in the Age of Balancing’, (1987) 96 Yale Law Journal 943, at 992–3CrossRefGoogle Scholar; Jackson, V.C., ‘Being Proportional About Proportionality’, (2004) 21 Constitutional Commentary 803, at 832Google Scholar. As suggested in Section 3, Robert Alexy’s ‘Law of Balancing’ and associating it with ‘legal scales’ and what he calls ‘Weight Formula’ testify to this point. Alexy, supra note 41, at 401–14; see also Klatt and Meister, supra note 46, at 10–12.

140 Cf. Supiot, supra note 24, at 48–9, 75–6, 93–7.

141 Cf. Michaels and Pauwelyn, supra note 13, at 356–7.

142 Somek, supra note 118, at 131, 272–3. See also Kuo, supra note 112, at 1072.

143 Michaels and Pauwelyn, supra note 13, at 368.

144 See Stone Sweet and Mathews, supra note 19, at 82–9. Cf. Kuo, supra note 112, at 1068–70.

145 Kuo, supra note 112, at 1071–2.

146 See also Aleinikoff, supra note 139, at 992–4; Jackson, supra note 139, at 832–3.

147 The concept of jurisgenesis and the critique of the jurispathic vis-à-vis jurisgenerative character of state law are central to the work of the late legal scholar, Robert Cover. In Cover’s view, a fundamental distinction needs to be drawn between the law-making processes and the resulting legal precepts. The jurisgenerative envisages a nomos imbued with meaning whereas the jurispathic is a legal system underpinned by administration and force, if necessary. See Cover, R.M., ‘The Supreme Court, 1982 Term – Foreword: Nomos and Narrative’, (1983) 97 Harvard Law Review 4CrossRefGoogle Scholar. Notably, Neil Walker transmutes the normative meaning of jurisgenesis at the heart of Cover’s critique. By ‘jurisgenerative’, he simply describes the processes and activities that contribute to the emergence of transnational law. See Walker, N., Intimations of Global Law (2015), 52CrossRefGoogle Scholar.

148 See Kuo, supra note 37, at 99. But cf. Dunoff, supra note 5, at 149–56.

149 See Kuo, supra note 112, at 1074.

150 Compare Antaki, supra note 46, at 305–8, with Saaty, T.L., Mathematical Principles of Decision Making (Principia Mathematica Decernendi) (2009), 43–4Google Scholar.

151 See Schauer, supra note 136, at 184.

152 Compare Antaki, supra note 46, at 287–94, 300–3, with Stone Sweet and Mathews, supra note 19, at 86–9. See also Rivers, J., ‘Proportionality and Variable Intensity of Review’, (2006) 65 CLJ 174, at 176CrossRefGoogle Scholar.

153 Kuo, supra note 112, at 1069–70.

154 Ibid., at 1070–2.

155 Kumm, supra note 44. Cf. Perju, supra note 42, at 334.

156 See Kuo, supra note 112, at 1072–4. Cf. Jeutner, supra note 36, at 105–10.

157 See Cover, supra note 147, at 4–5, 11–19.

158 See generally de Guevara, B. Bliesemann (ed.), Myth and Narrative in International Politics: Interpretive Approaches to the Study of IR (2016)Google Scholar.

159 See Miskimmon, A., O’Loughlin, B., and Roselle, L. (eds.), Forging the World: Strategic Narratives and International Relations (2017)CrossRefGoogle Scholar. See also Flockhart, T., ‘Towards a Strong NATO Narrative: From a “Practice of Talking” to a “Practice of Doing”’, (2012) 49 International Politics 78CrossRefGoogle Scholar; Salla, V.D., ‘Political Myth, Mythology and the European Union’, (2010) 48 Journal of Common Market Studies 1CrossRefGoogle Scholar.

160 Kahn, P.W., The Cultural Study of Law: Reconstructing Legal Scholarship (1999), 1516, 48–50, 73–4, 99–100Google Scholar.

161 Ibid., at 108–11; Koskenniemi, M., The Gentle Civilizer of Nations: The Rise and Fall of International Law 1870-1960 (2002), 1197Google Scholar.

162 D. Kennedy, ‘The Mystery of Global Governance’, in Dunoff and Trachtman (eds.), supra note 2, at 37, 43–54.

163 See also Klabbers, supra note 36, at 227.