Redefining Compensation under International Law: the Methodology of the International Court of Justice in DRC v Uganda

Abstract

In February 2022, the International Court of Justice handed down its decision in Armed Activities on the Territory of the Congo (Democratic Republic of the Congo v Uganda) which determined claims against Uganda for its unlawful military activities in the territory of the Democratic Republic of the Congo. The decision is significant for the law of reparations, with the Court adopting a controversial ‘global sum’ methodology in fixing compensation which was guided by equitable considerations. Also at issue (which the Court did not decide) was whether claims for high‐level ‘macroeconomic’ loss are recoverable in principle under international law. This note argues that the Court's global sum methodology is a permissible (and welcome) use of equity to determine compensation where there are evidential difficulties. It also takes the view that macroeconomic loss should be recoverable in principle: a position which is consistent with the teleological design of compensation, and with the more flexible approach to economic loss which some international tribunals have taken.