Thursday, 6 November 2014

PRINCIPLES OF SOVEREIGNTY IN THE 21ST CENTURY




                                                                          Abstract
The concept of sovereignty is considered to be a very vital ingredient in international relations. It is a basic underlining factor that sets states apart and is seen as fundamental to the dignity and respect of states. However, globalization and economic and technological development seems to restricted or curtailed the exercise of this sovereignty the world haven become a global village. Globalization has ensured that the old distinctions between international and domestic policies are becoming increasingly irrelevant. Sovereignty signifies simultaneously a right to act and a power to act. There are cases where the power of a state to act is so confined and limited that its sovereign right to act is rendered largely meaningless. Equally, there are times when the actual power of a state is so great that, although its sovereign right to use this power has not been formally acknowledged by others, it is tacitly recognized. These are extreme
cases, however. Normally, sovereignty means the possession of a right and power, and disputes about sovereignty are disputes about right and power.

The Concept of sovereignty:
According to Eric Brahm[i] Sovereignty is the central organizing principle of the system of states. However, it is also one of the most poorly understood concepts in international relations. At its core, sovereignty is typically taken to mean the possession of absolute authority within a bounded territorial space. There is essentially an internal and external dimension of sovereignty.
Internal sovereignty is the right of the state to organize public powers, namely: the right to legislate, to do justice and police, exclusively, without any interference in all areas of political, economic, social and cultural rights.[ii] Internally, a sovereign government is a fixed authority with a settled population that possesses a monopoly on the use of force. It is the supreme authority within its territory.
External sovereignty means absolute independence of the state and was expressed as a principle, for the first time, in 1576 by Juan Boden in the paper "About the Republic". According to this view, the state is freed from all subordination to any external power of it. Boden shows that sovereignty is absolute, perpetual and individual Externally, sovereignty is the entry ticket into the society of states. Recognition on the part of other states helps to ensure territorial integrity and is the entree into participating in diplomacy and international organizations on an equal footing with other states.
An important role in the birth of international law, in general, and its principles, in
particular, had, the Peace Treaty of Westphalia concluded in 1648, which ended the Thirty Years War in Europe. The importance of this Treaty for the international law is that, for the first time an international legal document recognized the equality of states as a principle of international law and for the first time in history the independent states of Europe have joined in an international community. Although equality of states was recognized by the Treaty of Westphalia, from 1648, this principle was applied only in the relations between the Great Powers, which can be noticed, especially in relation to the diplomatic relations between states. Great Powers privileges, could be observed, especially in external relations: only great monarchs enjoyed the right to appoint senior diplomatic representatives (ambassadors), the right to royal ceremonial etc. The small and medium states did not enjoy such rights, and failure to follow these ceremonial rules often caused tensions between states.[iii]

A stage with a significant importance in encoding the principle of sovereign equality is the adoption in 1945 of the UN Charter. The principle of sovereign equality of the states is enshrined in art. 2 of the UN Charter, which stipulates that "the United Nations is based on the sovereign equality of all its members". According to the principle of sovereign equality of the states, in the sense of the Conference from San Francisco,
de jure equality of the states does not depend on de facto power, size of territory, population or socioeconomic factors or policies. Being sovereign, states are equal and independent members of the international community. States, as subjects of international law with equal rights, possess the same rights and obligations under international law and are bound by international law equally. As part of the principle of sovereign equality of states, sovereignty has succeeded, after long efforts of the international community, to remove certain forms of state dependency, such as vassalage, protectorate orothers and to establish relations between states based on independence and equality. Thus, sovereignty is the basis of sovereign equality of states. In turn, respect for the sovereign equality of states contributes to the recognition and establishment of state sovereignty in international law. [iv]
The concept of sovereignty is important in international relations as it defines the relationship between states. The very notion of the State has these essential components:
(a) a permanent population,
(b) a defined territory,
(c) government, and
(d) capacity to enter into relations with other States[v]
This is evidenced in the actual state of the international community: sovereign States generally refrain from interfering in the domestic affairs of the others. Whatever political regime and social institutions a State may have is a matter for it within its own territorial limits.[vi]
As established so far, from the perspective of international law all states are sovereign and enjoy equal rights. In this way, at least at a declarative level, any state may participate in the plane of international affairs on an equal footing, conclude treaties on the basis of freely given consent, exclude other states from intervening in its internal affairs, govern the state territory and control the borders.[vii]However if we carefully study the behavior of states in international relations we can observe that, in reality, not all states demonstrate the same degree of sovereignty. In practice, countries with strong domestic institutions, developed and with a dominant position, are those who enjoy absolute sovereignty behavior, and in this regard, some states are "more sovereign than others".This is because not all states are able to exercise all their rights as derived from the concept of sovereignty, like Stephen Krasner and Robert Jackson, had suggested.[viii]

SOVEREIGNTY OF STATES IN THE 21ST CENTURY
Hitherto, the major actors in international law and relationship were just states. But we now have non-state actors who play and important role in the international relations. “Matters which had formerly been considered indispensable exclusive State functions are presently accomplished by virtue of international cooperation in its various instrumental modes and forms (international organizations; multilateral instruments; integrated communities).”[ix]
Additionally, non-State actors, for example, non-governmental organizations (NGOs) or even terrorists have a growing, or in-negligible, place in the international community and international law today. If non-State actors have such growing importance, State sovereignty may logically be so much declining in importance.
Given the emergence of a whole range of transborder issues from economic globalization to the environment to terrorism, one of the key discussions surrounds whether the nation-state is obsolete as the best form of political organization to deal with these problems. Economic and social processes increasingly fail to conform to nation-state borders, making it increasingly difficult for states to control their territory, a central component of sovereignty. This raises important questions about the proper site of political authority. As governance structures are established at the global level to deal with the growing number of global problems, debate has ensued as to how to make these arrangements accountable and democratic.
Many organizations are state-based, such as the United Nations, the World Trade Organization, or the European Union. Therefore, in principle, states are firmly in control and any ceding of sovereign authority is in their interest to do so. However, bureaucracies, once established, often seek to carve out additional authority for themselves. States also may find functional benefit in ceding authority to supranational organizations.
What is more, a whole range of private organizations have emerged to infringe on sovereign authority as well. In addition to human rights NGOs discussed above, global civil society organizations have emerged around numerous issues. Civil society groups have had a growing, yet uneven, effect on nation-states and international organizations. In addition, as economic interdependence grows, private governance arrangements, such as the Bank for International Settlements, are also becoming more prevalent. Private security organizations even conduct war on behalf of states, whether as mercenaries in western African civil wars or as contractors to the US military around the world.
Together all of this suggests that the concept of sovereignty is under considerable pressure. Some aspects of sovereignty still exist and are honored in most circumstances, but many inroads are being made into state authority by many actors in many different circumstances. Where this will lead has yet to be determined.[x]

According to Stephen D. Krasner[xi]
Sovereignty was never quite as vibrant as many contemporary observers suggest. The conventional norms of sovereignty have always been challenged. A few states notably the United States, have had autonomy, control, and recognition for most of their existence, but most others have not. The polities of many weaker states have been persistently penetrated, and stronger nations have not been immune to external influence. China was occupied. The constitutional arrangements of Japan and Germany were directed by the United States after World War II. The United Kingdom, despite its rejection of the euro, is part of the European Union.

Stephen Taylor in the summary of his work “Erosion of National Sovereignty by 21st Century Technology”[xii]
“There appears to be two threats to the sovereignty of nations that arise from the Internet, Cyberspace, and e-commerce. First, through their desire to participate in the new world economy via the Internet and international telecommunications systems, nations must agree to and adopt international laws and regulations that in essence usurp their individual control and sovereignty. In this case, they have decided and agreed to negotiate away some degree of their sovereignty.
Second, governments are concerned about the loss of their "informational sovereignty", as the technology of worldwide interconnection becomes prolific, the ability to monitor, control, or stop any individual communication becomes exceedingly difficult.21 There appears little doubt that sovereignty, as we know it today, will be diminished, and with it the centralized control and power of governments.”







[i] Brahm, Eric. "Sovereignty." Beyond Intractability. Eds. Guy Burgess and Heidi Burgess. Conflict Information Consortium, University of Colorado, Boulder. Posted: September 2004 <http://www.beyondintractability.org/essay/sovereignty>.
[ii] D. Popescu,Drept InternaÈ›ional Public, „Titu Maiorescu” University Publishing House, 2005, p. 55.
[iii] I.- M. Anghel, Drept diplomatic ÅŸi consular, Lumina Lex Publishing House, Bucharest, 1996, p. 45.

iv Nicu-Răzvan Dobârceanu, Vlad Alexandru Voicescu. Sovereignty and integration in modern era. Perspectives. International Journal of Law and Jurisprudence Online Semiannually Publication published by Union of Jurists of Romania and Universul Juridic Publishing House e-ISSN 2246-9435

v Montevideo Convention on Rights and Duties of States of 1933, Article 1.
[vi] Sovereignty and International Law by MIYOSHI Masahiro Professor Emeritus of International Law Aichi University, Japan @ page 4
[vii] N.- Q. Dinh, Droit International Public, 8th edition, LGDJ, Paris, 2002, p. 472.
[viii] R.- H. Jackson, Quasi-States: Sovereignty, International Relations, and the Third World, Cambridge University Press, Cambridge, 1993, pp. 22-23
[ix] steinberger, Helmut, “Sovereignty”, in Bernhardt, R. (ed.), Encyclopedia of Public International Law, Vol. IV (Amsterdam, etc.: Elsvier, 2000), at 511

[x] Brahm, Eric, supra

[xi] Sovereignty, Foreign Policy. Source: http://www.globalpolicy.org/nations/realism.htm, p. 1
[xii] Stephen Taylor in the summary of his work “Erosion of National Sovereignty by 21st Century Technology”  2003 International-Business-Center.com

CHARGE OF LAND



Abstract
Most times, loan/credit transactions are entered into when the parties are in good terms and in a positive relationship. Reasons for such transactions are usually for important purposes as such money can be used by the debtor as capital to start up or expand His/her business. After a certain period of time debtors run out of money and/or excuses, and lenders run out of patience. It is at that point that lenders look to enforce their securities, and it is at that point that everyone starts to look very closely at the security agreement entered into in better times. Thus it is important for the parties to know what principle of law they want to adopt as regards the loan/credit transaction. It is on this premise that we will be considering charge of land as a way of securing loan transactions.
Although there is the charge by deed expressed to be by way of a legal mortgage. This is also referred to as a legal charge. A legal charge is essentially a statutory form of legal mortgage. Under such a statutory form of legal mortgage there is no conveyance of any estate to the mortgagee, but the chargee has the same protection, powers and remedies as if a mortgage by demise had been made.
So far as a legal charge is concerned, the formalities are fairly straightforward. It is in relation to equitable charges that the position becomes more complicated.

In this work, we will be looking at issues like the creation of charge as an equitable security, its formalities, nature and enforcement. We will also be looking at the unique feature of charge of land that distinguishes it from other securities.

                                   Charge of Land

A charge is essentially an equitable security. An equitable charge by way of security is a devise in equity through which property is specifically appropriated as security for a loan, it is usually an agreement creating in equity a right to have the actual property applied to the satisfaction of the dept so that a Chargee is a secured creditor in the event of bankruptcy[1].
          The nature of the equitable charge was explained by Denman J. in Tancred vs Delagoa[2] as follows:
“A document given by way of a charge is not one which absolutely transfers property with a condition for re-convergence, but is a document which only gives a right to payment out of particular fund or particular property, without transferring that fund or property”
The Chargee takes no estate whatsoever in the land but has merely a right to payment out of the property. Thus, the Chargee unlike the mortgagee cannot foreclose because he acquires no title under the charge and therefore has nothing which can be made absolute though he can realize his security by either applying to court for an appointment of a receiver or for an order of judicial sale[3].
Simply put, an equitable charge does not involve a conveyance of land to the creditor unlike a mortgage. It is a mere appropriation of the land to the contract of loan with an assurance that upon default by the debtor the land maybe attached for the purpose of liquidating the indebtedness.
According to I.O Smith[4], a charge at best gives the creditor a personal action in contract and does not create an estate whatsoever in favor of the creditor.
Idigbe JSC in Ogundiani V Araba[5], Succinctly distinguished the nature of an equitable charge from an equitable mortgage in the following words:
          “Where the mortgage is by way of charge and not by conveyance, the mortgagee takes no estate whatsoever in the land or in the property but he has generally only an equitable interest to be enforced by sale upon an order of court. The equitable charge simpliciter only gives a right to payment out of the property; it does not amount to an agreement to give a legal mortgage at all. The strict mode of enforcing the charge is, however by sale (or appointment of a receiver under an order court) but never by foreclosure.”
Thus the Chargee unlike the mortgagee has no inherent right to enter into possession of the land and cannot therefore overstretch the power accruing to him in law as a creditor; the primary entitlement of creditors being entitlement to the principal sum and interest. Thus the Chargee cannot exercise possessory rights like the creation of leases etc[6] .
Where the charge is registered under the Registration of Titles Act, it vests in the Chargee the rights, powers and remedies conferred by the charge and the right to recover and receive the money secured thereby free from all estates whatsoever including those of the state. However the state of every registered owner of a charge is subject to any registered charge or encumbrances having priority to his charge.
Charge and pledge
A pledge is created when the Pledgor transfers the possession and use of his land to the Pledgee as a guarantee for the payment of a loan or debt. Before a transaction can qualify as a pledge, possession and use of the land in question must be given over to the pledgee and this in effect is the main distinguishing factor between a charge and a pledge. In a charge, possession is not transferred to the Chargee.   
Creation of Equitable Charge
Equitable charge maybe created by the consensus of parties to a credit arrangement or by operations of law.
1.  By consensus (Agreement) of parties: this may arise where a document given “by way of a charge” is given to the lender by the borrower or where the borrower delivers to the lender, land titled deeds as security for a loan[7]
In the case of a document given ‘by way of a charge”, a simple contract is created between the parties whereby defined property is specifically made responsible for the discharge of the borrower’s financial obligation. It shall state the particulars of the parties, the amount of credit facility, the mode and date of repayment and the particulars of the property.
Where a party pursuant to a parol agreement deposits his title deeds with a creditor, an equitable charge is created. Thus where the original parol agreement between the parties was that defined property be made specifically responsible for the discharge of the debtor’s financial obligation without transferring interest in the property to the creditor, the deposit is a further assurance and will not be construed as an agreement to create a mortgage which was not within the contemplation of parties.
2.  By operation of law: an equitable charge may evolve by operation of law in favour of a third party in circumstances where a Mortgagor’s financial obligation to the Mortgagee is met by a third party who then takes custody of the title deeds[8] but although the third party steps into the shoes of the former creditor, he is only a Chargee as opposed to a Mortgagee since the delivery of title deeds to him does not vest title in the property whether legal or equitable in him.
       

Requirement of Consent
Since a charge does not involve a transfer of either proprietary or possessory right in land, neither the consent of the Governor nor of the Local Government Chairman is required to create it[9].
       
Enforcement
Upon default by the chargor to repay the loan, the chargee may apply to court for an order of judicial sale or for an appointment of a receiver by the court [10] . An equitable charge cannot foreclose because he has no title vested in him whatsoever to make absolute.

Conclusion
The charge of land by its nature seems to be more of a contract in the sense that if the creditor default, fails, refuses or neglects to pay back the borrowed sum, the only option left to the charge is to turn to the court, he has no rights whatsoever to foreclose or deal with the property in anyway inconsistent or contradictory to the rights of the owner. This very factor seems to dissuade or discourage the employment of charge of land as most money lenders feel better with mortgage because it affords them the right of foreclosure.
In creation of equitable charge where a party pursuant to an agreement deposits his title deeds with a creditor, it is advisable for the sake of both parties that such agreements are in writing. This is because deposit of document can be understood as being merely for the purpose of safe keeping or it can be construed to be an equitable mortgage also, in Lagos and the PCL states[11] , statutes follow the case law position. Section 5(i)(c) of the Law Reforms(Contacts) Law of Lagos state[12] requires “every contract to enter into any mortgage or charge on land to be in writing, while section 78(i)(c) PCL provides that “a disposition of an equitable interest must be in writing signed by the person disposing of the same”



[1] I.O. Smith, Nigerian Law of Secured Credit,(reprinted 2006), Ecowatch Publications nigeria Ltd. Pp. 120 - 124
                  [2] (1889) 23 QBD P.239 @ P.242
[3] Ogudiani V Araba & Anor (1978) ii NSCC P.334
                  [4] I. O. Smith (Supra)

[5] (1978) 11 NSCC p. 242
[6] I. O. Smith (supra)
[7] I. O Smith (supra)
[8] See Knoury Vs Azar (1982) WACA p268
[9] I. O. Smith (supra) @ 123
[10] Ogundiani’s case (supra).
[11] The PCL states are Oyo, Ogun, Osun, Ondo, Ekiti, Edo, and Delta states of Nigeria.
[12] Cap 114 Laws of Lagos state of Nigeria 1994.