The Rights of Sovereign Countries

The 193 sovereign countries in our world determine when and if people and goods of other countries may cross their borders into their territory. The safety and other standards required for their own products (cars, planes, medicine, breakfast food, etc.) are equally required for those imported. For example, US chicken is banned from EU and UK because of American post-slaughter Pathogen Reduction Treatments (PRTs), specifically the use of chlorine or other antimicrobial chemical washes to kill bacteria like Salmonella and Campylobacter, which are not approved of in these countries.

But the extensive cross-border trade and movement of workers and tourists have so enormously benefited the standard of living of almost every person on the globe that countries have generally cooperated to harmonize these standards. Two hundred years ago almost 80% of the world’s population lived in extreme poverty. That figure fell to almost 60% a hundred years ago and almost 10% today. ” Study finds wealthy nations reap huge benefits from immigration”.

This dramatic increase in wealth has been greatly facilitated by establishing international standards for many of these goods and services for which international standard bodies have been created such as the International Organization for Standardization (ISO), International Telecommunication Union (ITU), World Health Organization (WHO), and the World Trade Organization (WTO). The World Bank (WB) and International Monetary Fund (IMF, for which I worked for 26 years) are among a broader group of international institutions promoting global cooperation.

Obviously, a country cannot allow the airplanes of other countries to enter and fly over or land in its territory without agreed standards for flight path reporting and control tower protocols. But what about satellites? They are part of the amazing story of telephone communications overseen by ITU in Geneva, Switzerland. On my cell phone I can connect to any other telephone in the world and have a conversation. It is unbelievable really.

On my first trip to Kabul in January 2002 we had to step outside to use our iridium satellite phones to connect with IMF headquarters in Washington DC (or anyone else for that matter). Landmines were later discovered in the garden we walked around while talking on our iridium phones.

Satellites can be stationary (i.e. move at the same pace the earth rotates so that it remains above the same territory below), or not and can be in a low or high orbit. Rules govern how a satellite should behave when passing over or near other satellites to prevent interference.

Satellites, unlike airplanes, are governed by a framework of international agreements and treaties, most notably the Outer Space Treaty.  Satellites move freely through orbital paths because a nation’s airspace only extends upwards to a certain (though legally undefined) altitude, while satellites operate in “outer space.” A satellite is governed by the laws and regulations of the specific country that launched or registered it. That launching country is completely responsible for authorizing, continuously supervising, and regulating the satellite’s operations. Nonetheless it is expected to abide by ITU regulations and assignment of the use of radio frequencies. ITU manages satellite frequency rights by acting as a global registry and coordination body to prevent signal interference, rather than by directly issuing operating licenses.

The United States is officially withdrawing from 66 international organizations. This includes 31 United Nations entities (such as the UNFCCC, UN Women, and the UN Population Fund) and 35 non-UN organizations (including the IUCN, the Green Climate Fund, and the World Health Organization). In my view, this dismantling of the global system of cooperation is a serious mistake—damaging both the US and the global system. The US has not, however, withdrawn from the ITU. But will the US play by the rules? The unpredictability of the Trump administration has the world wondering and worrying how far American destruction of the global order will go.

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Author: Warren Coats

I specialize in advising central banks on monetary policy and the development of the capacity to formulate and implement monetary policy.  I joined the International Monetary Fund in 1975 from which I retired in 2003 as Assistant Director of the Monetary and Financial Systems Department. While at the IMF I led or participated in missions to the central banks of over twenty countries (including Afghanistan, Bosnia, Croatia, Egypt, Iraq, Israel, Kazakhstan, Kenya, Kosovo, Kyrgystan, Moldova, Serbia, Turkey, West Bank and Gaza Strip, and Zimbabwe) and was seconded as a visiting economist to the Board of Governors of the Federal Reserve System (1979-80), and to the World Bank's World Development Report team in 1989.  After retirement from the IMF I was a member of the Board of the Cayman Islands Monetary Authority from 2003-10 and of the editorial board of the Cayman Financial Review from 2010-2017.  Prior to joining the IMF I was Assistant Prof of Economics at UVa from 1970-75.  I am currently a fellow of Johns Hopkins Krieger School of Arts and Sciences, Institute for Applied Economics, Global Health, and the Study of Business Enterprise.  In March 2019 Central Banking Journal awarded me for my “Outstanding Contribution for Capacity Building.”  My recent books are One Currency for Bosnia: Creating the Central Bank of Bosnia and Herzegovina; My Travels in the Former Soviet Union; My Travels to Afghanistan; My Travels to Jerusalem; and My Travels to Baghdad. I have a BA in Economics from the UC Berkeley and a PhD in Economics from the University of Chicago. My dissertation committee was chaired by Milton Friedman and included Robert J. Gordon. I live in National Landing Va 22202

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