Article contents
A Discourse Theoretical Approach to Sovereign Debt Restructuring: Towards a Democratic Financial Order
Published online by Cambridge University Press: 06 March 2019
Abstract
This Article studies the role of law for aligning democracy with a market-based financial order. Jürgen Habermas's discourse theoretical understanding of the role of law in the welfare state establishes a structure for exploring this issue. According to this approach, law needs to be enforceable, law-making and law-application need to be institutionally separated, and public law needs to be distinguishable from private law. The contemporary practice of sovereign debt restructuring reveals some empirical and normative challenges to this understanding of the law. Based on these findings, this Article proposes several conceptual and institutional improvements that might lead to a more stable relationship between democracy and financial order. In particular, we argue that sovereign debt restructuring should tap the legitimating potential of existing transnational discourses that are characterized by cross-border cleavages in public discourse.
- Type
- Research Article
- Information
- German Law Journal , Volume 17 , Issue 5: Special Issue Democracy and Financial Order , 01 October 2016 , pp. 709 - 746
- Copyright
- Copyright © 2016 by German Law Journal, Inc.
References
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165 According to G&;sta Esping-Andersen, the development of institutions predominantly preoccupied with the production and distribution of social well-being led to the rise of the welfare state, with variations of welfare state institutions and policies in capitalist democracies. Esping-Andersen distinguishes the liberal, conservative, and social democratic model of welfare state regulation. See G&;sta Esping-Andersen, The Three Worlds of Welfare Capitalism [XX] (1990); Schmidt, Manfred G. et al., Der Wohlfahrtsstaat. Eine Einführung in den historischen und internationalen Vergleich (Schmidt, Manfred G. et al. eds., 2007).Google Scholar
166 Paul Pierson, Three Worlds of Welfare State Research, 33 Comp. Pol. Stud. 798 (2000).Google Scholar
167 See Schulz, Martin, Interview, Daumenschrauben angezogen, 36 Der Spiegel (2012) http://www.spiegel.de/spiegel/print/d-87997155.html.Google Scholar
168 See Wolfgang Schäuble, Interview, Keine Rettung um jeden Preis, 33 Der Spiegel (2011), http://www.spiegel.de/spiegel/print/d-79973965.html.Google Scholar
169 Habermas, supra note 73, at 83–84 (translated version).Google Scholar
170 Id. Google Scholar
171 For an inspired proposal for institutional changes in the European Union, see de Witte & Daweson, supra note 154, at 214–17.Google Scholar
172 For a proposal as to how the design of an international financial architecture could draw on the institutional setting of the ILO, see Tsotroudi, Katerina, International Labour Standards as a Model for the Future: The Case of Financial Regulation, in Les normes internationales du travail: un patrimoine pour l'avenir. Mélanges en l'honneur de Nicolas Valticos 615 (George Politakis ed., 2014).Google Scholar
173 See other organizations, for example, Consejo Presidencial Andino, Consejo Consultivo Empresaral, and Consejo Consultivo Laboral. Google Scholar
174 In the case of MERCOSUR, workers' and employers' representatives can also vote on instruments and policies to be adopted by the organization in the area of social and labor affairs.Google Scholar
175 For the ECJ, see Jan Komárek, National Constitutional Courts in the European Constitutional Democracy, 12 Int'l J. Const. L. (2014).Google Scholar
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