Law as a set of rules guiding human behavior plays a significant role in statecraft, more so, in the formulation, application and execution of government policies. It is therefore pertinent to acknowledge its role in the containment of global emergencies which are known to have far reaching consequences on the economy. Adam Smith, the economist cum philosopher, describes the relationship between law and economics as a symbiotic one[1]. Economics being a system of distribution and consumption and also relating to the efficient use of resources cannot be divorced from the principles and rules that guide human life[2]. However, an effective economy depends on, and involves the efficient use of resources, consumption and distribution of goods and services both locally and internationally. Global uncertainties and volatile realities have over time led to tremendously negative impacts on the economy of nations. This research examines these uncertainties/emergencies, with a view to explicate how the law especially through caps absorbs the shocks they bring along.

Historically, globalfinancial emergencies have had negative impacts bothon municipal and global economies. “The Great Depression” sawa worldwide economic crisis lasting roughly 10years, forcing fundamental changes in economic institutions.Originatingin the United States with the fall of stock prices, it became worldwide news with the stock market crash of October26th 1929. Worldwide GDP fell by an estimated 15%[3]. Although it originated in the USA the great depression caused drastic declines in output, severe unemployment and acute deflation in almost every country of the world. Its social and cultural effects were no less staggering especially in the United States where the great depression represented the harshest adversity faced by Americans since the civil war[4].

Another great financial global emergency after the great depression was the Great Recession, a period between 2007 and 2008 the period of the great recession marked a general decline in national economies globally[5]. It was the most severe economic and financial meltdown since the great depression of 1930s.The fall in world economy began when the US housing market went from boom to bust and large amounts of mortgage backed securities and derivative lost significant value. The great recession had devastating economic effects in the world, roughly about 8.7 million jobs were lost and GDP rates of most countries contracted by about 5%.[6]

Global health emergencies have proven to be the most common and often times have far reaching effects on global economy. The Spanish flu of 1918 has been considered the deadliest in world history, it infected about 500million people worldwide, that was one third of the planets population and killed about 20million to 50 million victims[7]. More recently in the 21st century, the World Health Organization has declared a number of global health emergencies. The Hini influenza(swine flu) which was declared in April 26th 2009[8], the wild polio virus declared on May 5th 2014, Ebola virus disease declared August 8th 2014 , Zika virus declared February 1st 2016 and more recently on the 30th January 2020 WHO declared the Corona virus as a public health emergency of international concern[9]. The effects of these global emergencies have been downturn in production and distribution of goods and services and a low consumer base for small scale economies thereby leading to untold economic hardship.

The laws and policies employed by international organizations have been efficacious inmoderating the effect of negative global health emergencies. The World Health Organization, created within the terms of Article 57 of the charter of the United Nations in 1948[10], saw member nations coming together to sign the charter which gave rise to an organization responsible for international public health. Article 2(d) of the constitution of the WHO, colligate to functions of the organization provides that the function of the WHO shall be to “furnish appropriate technical assistance and in emergencies, necessary upon the request or acceptance of governments.”[11] It is in the light of this law, laying as bedrock for subsequent international policies which the organization has been able to establish dominance in its swift response to global health issues more recently is its prompt response to the corona virus.

The United NationsEconomic and Social Council is an organization established by law which has been subservient in the curtailment of global emergencies. Established in 1945 as one of the six main organs of the UN, chapter 10 of the United Nations charter particularly Article 62[12] empowers ECOSOC to make or initiate studies andreports with respect to international economic, social, cultural, educational and health related matters. The ECOSOC holds meetings to address global development emergencies or crises to raise awareness and serve as a high level policyplatform for coordination of actors working on a specific situation to develop a strategic response. These special meetings have addressed global health emergencies including SARS in 2003, Ebola in 2014, and Avian flu in 2005. The council has also held special meetings dedicated to economic related emergencies such as food crisis in Africa 2005 and the global food crisis 2008.[13]

Apart from international rules and policies which have given a significant effect on moderation of emergencies, municipal rules and policies have also played a crucial role. Most countries in the world have enacted precautionary laws which help cushion the effects of these global emergencies.In the USA the International Emergency Economic Powers Act authorizes the President to regulate international commerce after declaring a national emergency in response to any unusual threat to the United States. In Australia, there is an enactment for the National Health Security Act and Agreement which require Australia to develop multi-level capacities in the health sector in case of any health threat.In Canada, the Public Health Agency of Canada’s Act was enactedin 2006 to control infectious disease and for response to health emergencies. The act also establishes the Public Health Agency of Canada which is saddled with these duties. In the people’s republic of China the Emergency Response Law was promulgated in 2007 to regulate public health emergencies, in England local authorities are empowered to act swiftly in disease control under the Public Health Control of Disease Act 1984. In Nigeria the Quarantine Act Of 1990 empowers the president to formulate laws and policies preventing the spread of emergency infectious diseases the use of the term “public health’ in section 45 of the Nigerian constitution which relates to derogation is also a further power given to the president to make laws and policies which even derogate from human rights of its citizens.

Fiscal and monetary laws and policies are also being employed by various countries’ in the control of financial emergencies which poses threat to the economy. Monetary and fiscal policies have since served as the main tools to promote optimal economic performance in cases of emergency. Monetary policy is enacted through changes in the main supply and rate at which banks lend money while fiscal policy is enacted through changes in government supply and taxes, a good example in the United States is the American Recovery And Reinvestment Act which works to provide stimulus and grants to small and large scale businesses in events of financial downturns. In Nigeria the CBN Act 1990 enables the CBN to make such fiscal and monetary policies controlling financial emergency situations, the president is also empowered to make policies and directives regulating financial activities e.g. in removal of subsidy rates.

The judicial branch of government as a guardian of civil rights and liberties and protector of the rule of law has been acutely relevant during public financial and health emergencies when courts may need to issue orders authorizing actions to protect public health. In Jacobson v Massachusetts the US Supreme Court held that public health officials were authorized to require small pox vaccination so as to help in small pox containment however without interference to fundamental human rights. In the case of W.Boekhout v Minister van Landbouw the Luxemburg court had to consider a national measure taken to act against foot and mouth disease in its decision it stated that it was imperative for the national authority to take emergency meaures.The European union, through the court of justice of the EU has also advanced a framework for emergency government policy, see …Denise Mcdonagh v Ryanair ltd, Thomas pringle v Government of Ireland.

The noteworthy significance which laws and policies play in the wake of global emergencies cannot be over emphasized; States, regional and international organizations have through the employment of policy been able toeffectively curtail eminent economic danger. It is settled fact, emergencies are unforseen and inevitable. However, foresight enables the policy formulator to forecast its nature and the magnitude of impact it is likely to have on an economy. The policy put in place by law is to take the retroactive effect of a shock absorber or a soft landing pad in the event of what economists may refer to as economic crash, hence cushioning any negative effects.

June 2020

Fatika Ibrahim

[email protected]

[1] Adam smith, An enquiry into the nature and causes of wealth of nations(London press 1776)

[2] Ibid

[3] John A. Garraty, The great depression (1986)

[4] Roger Lowenstein, History repeating(Wall street journal Jan 14, 2015)

[5] World Economic Situation and Prospects 2013, Development policy and analysis division of the UN Secretariat retrieved December 19, 2012.

[6] United Nations (January 15, 2013,World Economic situation and prospects 2013(trade paperback) (1st ed.)United Nations. P.200 ISBN 978-9211091663.

[7] Center for disease control and prevention, 1918 pandemic (H1N1 virus). Retrieved April 18 2020

[8] www.ctvnews.ca/mobile/health/five-orther-times-the-who-declared-emergeny accessed 3rd June 2020

[9] ibid

[10] Constitution of the world health organization, basic documents. World health organization, (forty fifth edition October 2006).

[11] ibid

[12] En.m.wikipedia.org/wiki/united-nations-economic-and-social-council accessed 3rd June 2020

[13] www.un.org/ecosoc/en/content/ecosoc-special-meetings-on-emergencies accessed 2nd June 2020

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