Globalisation, sustainable development and the common concern of humankind

Challenges faced by states in the era of globalisation continue to erode the traditional international law concept of ‘state sovereignty’. During the last two decades, there has been a growing economic interdependence amongst states, accompanied by changes to technology and financial markets and an associated growth in numbers of transnational corporations (TNCs). A large number of TNCs have head offices of the parent companies in developed countries and subsidiaries located in developing countries. Often these TNCs may have an income which is larger than the gross national product of many developing countries. Responsibility has tended to move from states to non-state actors, leading to an increasing influence on the part of transnational institutions (including corporations) which operate globally. This enables some TNCs to exert pressure when national and international policies are decided. The dominance of information and communications technology and the changes to transboundary networks of production, finance and trade are also undermining the sovereignty of states. Therefore, laws and compliance mechanisms should be developed that take into account the interests of all major stakeholders including states, companies, environmental groups and communities. The creation of international norms will become essential in order to resolve global problems.