Legal Theories, Development Models, and Global Impact Since 1945

Posted on Oct 8, 2024 in Social sciences

Functional Theory of Law

This theory posits that law’s essence lies not in its origins or sanctions, but in its functions. Three primary functions are:

  1. Dispute Resolution: Law resolves disputes, restoring social equilibrium and offering an alternative to private vengeance.
  2. Facilitation and Protection of Voluntary Arrangements: Law enables individuals to anticipate consequences, securing and facilitating voluntary transactions and arrangements (e.g., limited liability companies, which promoted overseas discovery and colonization in the 17th century).
  3. Shaping Moral and Legal Conceptions: Law guides societal beliefs, feelings, and actions. A key example is the UN General Assembly’s adoption of the Universal Declaration of Human Rights (UDHR) on December 10, 1948.

Positive Law Theory and International Law

Can positive law theory explain international law? Yes. Similar to a simple agreement like mowing a lawn, international law relies on treaties—agreements where parties understand the legal binding nature and importance of adherence. This aligns with positive law’s focus on explicit agreements and established norms. Ecclesiastical law (canon law) also functions similarly.

Development Models and Their Impact

Development Model I

This model had four key elements:

  1. State Planning: Both Marxist and non-Marxist approaches emphasized state planning for economic and societal development, leading to the creation of planning ministries.
  2. State Enterprises: Public sectors expanded, with government corporations and enterprises driving economic activity.
  3. Private Sector Regulation: Pervasive regulations required state approval for virtually all economic activities (e.g., India’s License Raj).
  4. Restrictions on Foreign Influence: Foreign investments were often expropriated, and import-substitution industries were promoted.

Development Model II

Following the failure of Model I, and influenced by the collapse of the Soviet Union and the rise of high-growth Asian states, Model II emerged, promoted by institutions like the World Bank and IMF. Its core tenets included:

  1. Market Reliance: Developing countries embraced market principles, including floating exchange rates, elimination of price controls, and growth of capital markets.
  2. Privatization: State subsidies to inefficient enterprises were eliminated, foreign debts reduced, and emerging market stock exchanges grew.
  3. Deregulation: Economic activity became permissible unless explicitly prohibited.
  4. Open Economies: Tariffs were lowered, economies shifted from import substitution to export orientation, and foreign direct investment (FDI) increased.

Successes and Failures of Development Policies Since 1945

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-DEVELOPMENT MODEL 1: 4 Basic elements: -Public ordering and state planning of the economy and society. -Reliance on state enterprises as economic actors. -Restriction and regulation of private sector:License Raj. -Limitation and control of the country’s economic relations with the outside world

Public ordering and state planning: Marxist and non-Marxist agreed that economic development could not take place without proper state planning:Third World governments created planning ministries, departments.

Reliance on public sector enterprises:Most countries expanded their public sectors, creating government corporations and public enterprises to carry out all sorts of economic activities.

Restriction and Regulation of the private sector: Pervasiveness of regulations:No economic activity was to be permitted unless the state had specifically approved it.

Restrictions on foreign influence in the economy: Expropriated foreign investments, promoted “import-substitution industries”


-DEVELOPMENT MODEL 2: Model I simply failed to bring about development. The World Bank and the IMF carried out: Elimination of budget deficits, Strict control over monetary supply, Privatization, and Openness to international trade

Also the collapse of the Soviet Union and the Rise of the Asian high-growth states took place.

Reliance on markets was remarkable: -Developing countries called themselves emerging markets. -Abolition of fixed exchange rates and adoption of floating currency exchanges. -Elimination of price control. -Growth of capital markets.

Privatization: -Elimination of state subsidies to inefficient government enterprises. -Reduction of foreign debts. -Rise of emerging market stock exchanges.

Deregulation:All economic activity is permitted unless specifically prohibited

Open economies: Tariffs lowered on average. Import substitution to export orientation. Increased FDI


–The U.N. has an impressive record of resolving many international conflicts. U.N. peacekeepers have, since 1945, undertaken over 60 field missions and negotiated 172 peaceful settlements that ended regional conflicts. Right now, peacekeepers are involved in 16 operations around the world trying to save lives and avert wars.

Secretary-general from 1953-1961, said that the “U.N. was not created to take mankind to heaven, but to save humanity from hell.”The U.N. has solved many violent conflicts, prevented wars, and saved millions of lives but it also faced disappointments.In 1970, when the Nuclear Non-proliferation Treaty (NPT) was signed by 190 nations, all five superpowers owned nuclear weapons. Later, despite the NPT and Partial Test Ban Treaty, several countries developed nuclear weapons. This revealed the U.N.’s inability to enforce regulations on offending nations. Along similar lines, the U.N.’s International Court of Justice has resolved major international disputes, but the U.N.’s veto powers have limited its effectiveness at critical times. As President Obama has said, the U.N. is imperfect, but it is also indispensable.