58 pages 1 hour read

The Hidden Globe

Nonfiction | Book | Adult | Published in 2024

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Themes

Differing Modes of State Sovereignty

In The Hidden Globe, Abrahamian explores forms of state sovereignty that differ from traditional conceptions of contemporary nation-state sovereignty. She is critical of some of these forms of sovereignty, while being open to others as models for addressing the limitations of the traditional state model. The traditional conception of nation-state sovereignty, as described by Abrahamian, is “one land, one law, one people, and one government” (6). In the hidden globe, this conception of state sovereignty is transformed in a variety of ways.

One alternative mode of sovereignty is creating areas where typical laws and regulations governing imports, exports, taxation, and manufacturing are suspended in favor of a different set of regulations. A key example of this is the Dubai International Financial Center (DIFC). The DIFC is of particular interest to Abrahamian because it has its own judicial system, separate from the judiciary of the country in which it is located. Effectively, Dubai has devolved some of its judicial authority to a tribunal run by a network of corporate entities. Further, this structure stretches the concept of state sovereignty because the DIFC courts claim jurisdiction over any corporation that is registered in the DIFC regardless of where it actually operates. As such, the DIFC courts effectively operate with a deterritorialized form of sovereignty. Abrahamian criticizes this framework for existing solely for elite actors and potentially creating cover for human rights abuses in authoritarian regimes like the Emirates and Kazakhstan.

Abrahamian is likewise critical of the extraterritorial exceptions to national laws created by the United States and Australia to exclude or expel migrants from human rights protections. She describes how the United States unilaterally leases territory from Cuba to hold migrants seeking asylum. In the no man’s land of Guantanamo Bay, Cuba, detainees are at once under American jurisdiction while not benefiting from the rights guaranteed them by the US Constitution, such as the right to habeas corpus or a trial. Australia used this system as a model when establishing its island detention centers for migrants in Papua New Guinea and Nauru.

Abrahamian is a proponent of open borders, or the notion that people in a globalized society should be allowed to move as freely as goods and capital. She acknowledges, though, that “few people, and fewer policymakers, share [her] views” (130). As a result, she sees charter cities and the model of the Norwegian territory of Svalbard as potential compromises. A charter city as proposed by Paul Romer is a city governed by one country in the territory of another country; charter cities welcome people from all over the world. Abrahamian suggests that this model of sovereignty “may offer an alternative to the limited, depressing, dangerous options on offer” (126). Similarly, she is intrigued by the laws governing Svalbard: No visas are required and anyone who can reach the territory and survive there is permitted to stay. She recognizes the limitations of this, as people who do not have the resources to survive in the harsh Arctic climate would be unable to live there, but she values it as a possible model for an open border equivalent system.

Abrahamian avoids moral absolutism about these differing forms of state sovereignty. Instead, she insists, “I don’t think they can be definitively written off as all good or all evil” (311). She criticizes elements she thinks are damaging, while encouraging consideration of elements that could be beneficial.

The Impact of Liminal Jurisdictions on Vulnerable Peoples

Some liminal jurisdictions can be detrimental to vulnerable populations. These impacts, both indirect and direct, reflect the way that these structures largely privilege the interests of the wealthy global elite. Abrahamian argues that “the hidden globe can empower the most xenophobic and exclusionary nationalism” (7).

One of the primary structures Abrahamian documents are tax-, duty-, and tariff-free zones created to benefit multinational corporations with the support of the state. Structures such as freeports allow corporations and wealthy elites to exchange or store goods without paying taxes. Abrahamian also identifies how bank secrecy laws, like those in Switzerland and elsewhere, allow “tax cheats, fraudsters, and money launderers [to use] remote locations to hide their wealth” (47). As a result, Abrahamian argues, states, especially poorer states, are denied an important resource for tax dollars that could be used to provide state services like infrastructure development, welfare, or other supports for the local population. Proponents of these structures argue that some portion of benefits trickles down to general populations. Citing legal scholar Pamela Bookman, Abrahamian counters that “it’s not clear that it does” (150).

The creation of free-trade zones can also have direct impacts on vulnerable populations. Abrahamian documents how the creation of a zone in Boten, Laos, led to the displacement of the local villagers. It also contributed to a staggering increase in crime following the introduction of casinos. This is a pattern that occurs elsewhere, although Abrahamian does not extensively describe this. She paraphrases architect Juan Du, who “warn[s] that displacing native populations, relying on top-down directives from developers […] and casting aside local culture can have ‘devastating consequences’” (271).

Abrahamian also documents how the creation or deployment of liminal jurisdictions negatively impacts migrants. Migrant detention facilities on offshore sites leave migrants in a legal limbo, sometimes for years, while they are held in poor conditions without adequate medical care or legal representation. Abrahamian quotes a lawyer who describes the American migrant detention center at Guantanamo Bay as “the ninth circle of Hell” (202). The situations in the Australian detention centers in Manus and Nauru were similarly dire; Abrahamian describes “rank food and meager portions, the doorless toilets and inadequate ventilation, the sub-par medical services that led to the deaths of more than a dozen detainees” (234). These examples show how the geographic distance and legal obscurity provide cover for human rights abuses of a vulnerable population.

Exploitation of Obscure Markets by Private Companies

One of the key characteristics of the hidden globe is, as the name implies, the obscurity of its market structures. This obscurity creates opportunities for private actors to act in morally, and sometimes legally, dubious ways. As Abrahamian notes, “when the rules benefit the wealthy, the wealthy need not break the rules” (60).

A classic example of this exploitation is the entire flag of convenience system. American businessmen take advantage of the desperation of small, low-income countries looking to raise revenue, working with these governments to establish maritime registries that almost any ship can register with in exchange for a fee. The businessmen then maintain commercial control of the registries and take a large cut of the proceeds. As a result, private marine companies cycle through flags of convenience to dodge labor, environmental, or other forms of regulation. For instance, Palau provides “funeral flags” for ships at the end of their lifespan going to shipbreakers. This flag allows the companies to get around European or other environmental regulations regarding shipbreaking. The system can be extrapolated beyond the sea: Abrahamian argues that the Tonga satellite registry operates in a similarly exploitative fashion.

A more contemporary example is the evolution of the freeport system. Freeports are “where oligarchs now stash art, wine, jewels, and other luxury items” (2). This exploits a regulation loophole: “[G]oods in these zones remained in a suspended state: physically sedentary yet legally in transit” (54). Abrahamian profiles millionaire businessman Yves Bouvier to show how private actors benefit from freeports. She argues that this structure, especially as relates to the storage and sale of fine art, is also ideal for money laundering: “[P]utting mounds of cash into a high-value painting, then hiding it, is also a way to move money out of a dirty industry” (59), particularly as freeports are not tightly regulated as banks.

Sometimes, this exploitation by private companies is enabled or even encouraged by nation-state governments. This is arguably the case with the control of Fuk Hing Travel Entertainment Group over the free trade area of Boten. The government of Laos, with the support of China, devolved its powers to this private company, turning over “everything from cultural education to policing” (271) to the development group. Fuk Hing profited by running casinos while failing to provide for public safety, services, or infrastructure. The governing states did not rescind Fuk Hing’s control over the territory for years even as “its lawlessness quickly spiraled out of control” (275).

With these examples and others in the text, Abrahamian shows how states create and regulate these obscure markets that are vulnerable to exploitation by private actors.

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