regulations at international forum are not binding in nature, though they may
form a part of any national law or municipal law of a state. Once they are
incorporated in the national law of a state then they may be regarded as
binding in nature and are considered to be obligatory, with some repercussions
if not followed strictly. Therefore in International law, laws are not binding
in nature but they tend to become obligatory, once they are being recognized by
the states, this binding nature is at the will of any sovereign state, but this
does not mean that the softness or the non-binding nature of International law
can be ignored completely, rather it should be considered to be the stepping
stone to implement the law in its purest form i.e. hard law, that is binding
and obligatory in nature.
law may not have a binding force since the beginning, it is very much in the
form of soft law, but with the time any soft law may take a form of hard law if
states are willing to recognize them. Nowadays, states are very much
incorporating these soft laws and trying to give them the effect of hard law
through their national legislations.
if a soft law has not been converted into the hard law, then also states tend
to follow and obey by those regulations, due to the impact of ‘Globalization’
that it has on the member states at International forum and also due to the
recent developing concept of ‘Global Governance’. Hence through this paper,
researcher would try to focus on the role that various International
Institutions have played through their regulations, which may not be binding in
nature and can be considered to be the soft law, but still has influenced the
member states in their development process. The main focus of this paper would
be on the banking and financial institutions like IMF, IBRD, IDA, BIS with the
help of Basel Committee, though these institutions may have somewhat a binding
nature, but these institutions are considered to be the part of soft law i.e.
International law or for this paper International Economic Law, and still
possess the characteristics of soft law, because the regulations and rules of
these institutions cannot be enforced on the member states, without them
incorporating and recognizing in their national laws.