Does the Current International Legal Framework Contribute to Greater Inequality?

Abstract

This paper addresses why inequality, both domestic and between countries, has enlarged since globalisation accelerated, despite a considerable augmentation in global trade, foreign direct investment, and international economic growth. For that, it will use an interdisciplinary approach between different areas of international law, as their interaction structures reality and results; verifying the links between technical improvements, freer trade, the absence of global labour standards and a social linkage between trade and labour; plus, growing industrial concentration, and the phenomena connected to international tax planning, with particular attention to transfer pricing and tax havens, which are fundamental to explain the accretion of inequality.To conclude the need of a profound reform of the international tax system, in conjunction with tackling industrial concentration and the incorporation of global labour standards, handled by the ILO or a similar organisation, to avoid social conflict; though exposing the problems to design that reform, because sovereignty, as consecrated by the UN Charter, still dominates international relations.