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<title>Scholarly Commons</title>
<copyright>Copyright (c) 2013 George Washington University Law School All rights reserved.</copyright>
<link>http://scholarship.law.gwu.edu</link>
<description>Recent documents in Scholarly Commons</description>
<language>en-us</language>
<lastBuildDate>Sun, 19 May 2013 01:37:41 PDT</lastBuildDate>
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<title>Functional Government in 3-D</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/543</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/543</guid>
<pubDate>Tue, 30 Apr 2013 13:05:25 PDT</pubDate>
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	<p>The creation of new administrative agencies and the realignment of existing governmental authority are commonplace and high-stakes events, as illustrated by the recent creation of the Department of Homeland Security after 9/11 and of new financial regulatory agencies after the global recession of 2009. Scholars and policymakers have not devoted sufficient attention to this subject, failing to clearly identify the different dimensions along which government authority may be structured or to consider the relationships among them. Analysis of these institutional design issues typically also gives short shrift to whether authority should be allocated differently based on agency function. These failures have contributed to reorganization efforts that have proven ill-suited to achieving policymakers’ goals due to mismatches between the perceived defects of existing structures and the allocations of authority chosen to replace them. This Article introduces a framework for assessing how governmental authority may be structured along three dimensions: centralization, overlap, and coordination. Using examples from diverse policy areas including national security, financial markets, and environmental protection, it demonstrates how differentiating among these dimensions and among particular governmental functions better illuminates the advantages and disadvantages of available structural options. Though recognizing that the optimal allocation of authority is inexorably context-specific, the Article concludes with preliminary observations about how certain allocations of authority are likely to better promote important social policy goals than others.</p>

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<author>Robert L. Glicksman et al.</author>


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<title>Filartiga’s Legacy in an Era of Military Privatization</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/542</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/542</guid>
<pubDate>Mon, 29 Apr 2013 08:07:20 PDT</pubDate>
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	<p>Filartiga v. Pena-Irala established the idea that domestic tort suits might be brought under the Alien Tort Claims Act ("ATCA") against those accused of violating human rights norms. But what is the legacy of this case in an era of military privatization? Are there available legal responses to what we might call the privatization of torture? In the Abu Ghraib prison in Iraq, where detainees were tortured and abused, the individuals involved in the torture included not only members of the military, but contractors hired from the private sector. Because U.S. constitutional scrutiny traditionally applies only to state actors, privatization has been seen as potentially undermining constitutional oversight. Moreover, because many international human rights are framed as rights against state overreaching, the turn to private actors might appear to present a significant problem for legal accountability. Yet, military outsourcing may not, by itself, pose quite as serious an impediment to accountability. To the contrary, human rights abuses by private contractors may actually be more readily subject to legal action than abuses by official governmental actors, both through civil suits under the ATCA to redress violations of international human rights law, and through civil and criminal litigation to redress violations of domestic law. Using the Abu Ghraib prison abuse as a case study, this Essay will compare the possible forms of legal accountability for official governmental actors and private contractors, and suggest that the latter are at least as likely, and perhaps more likely, to be held accountable for abuses.</p>

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<author>Laura T. Dickinson</author>


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<title>Torture and Contract</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/541</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/541</guid>
<pubDate>Mon, 29 Apr 2013 08:07:19 PDT</pubDate>
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	<p>This essay is a contribution to the War Crimes Research Symposium: "Torture and the War on Terror” at Case Western Reserve University School of Law, October 7, 2005. The symposium raised important questions about the problem of torture and the use of torture in the so-called "War on Terror." In considering this problem, this essay focuses on an aspect of the issue that has only recently received popular and scholarly attention, but that is likely to have profound implications: the privatization of military functions, and specifically, the privatization of torture. Such privatization may, at first blush, seem to render it more difficult to hold human rights abusers accountable because private actors might not be deemed subject to various international human rights instruments that were initially drafted primarily with states in mind. Yet, while the extensive outsourcing of torture to private military contractors is certainly a cause for serious concern, such outsourcing may not provide as serious an impediment to accountability as it may at first seem. Indeed, abuses by private contractors may actually be more readily subject to legal sanction than abuses by official governmental actors. Nevertheless, scholars and policymakers need to look beyond simply the formal instruments of international human rights law and consider alternative modes of accountability as well, such as the use of contractual provisions and internal institutional structures. These alternative modes of accountability harness the potential of the government contracts that are the very engine of privatization to help deter and prevent torture and other abuses.</p>

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<author>Laura T. Dickinson</author>


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<title>Accountability of State and Non-State Actors for Human Rights Abuses in the &apos;War on Terror&apos;</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/540</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/540</guid>
<pubDate>Mon, 29 Apr 2013 08:07:18 PDT</pubDate>
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	<p>The decisions regarding detainees in the so-called "war on terror" - Hamdi, Padilla, and Rasul - leave a number of questions unresolved. This essay focuses on one question in particular: What happens when terrorists are detained not by U.S. authorities, but by private contractors hired by U.S. authorities? Domestically and internationally, we are seeing an increasing turn to private contractors performing what we might think of as core governmental functions. Accordingly, it is vital to consider to what extent private actors involved in the treatment of detainees in the war on terror can be held accountable for their actions. Although in the domestic context many scholars argue that privatization leads to a dramatically reduced scope of accountability, we may not be able to translate that conclusion to the international sphere because the baseline is different; accountability is actually very difficult to achieve under international law with respect to either state or private actors. Although there are not many avenues to hold private actors accountable, there are some possibilities, which will be discussed in this essay. In particular, this essay suggests that human rights lawyers and scholars should consider not only accountability through the vehicle of suits to enforce international law norms, but also suits to enforce ordinary municipal law.</p>

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<author>Laura T. Dickinson</author>


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<title>Using Legal Process to Fight Terrorism: Detentions, Military Commissions, International Tribunals, and the Rule of Law</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/539</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/539</guid>
<pubDate>Mon, 29 Apr 2013 08:07:17 PDT</pubDate>
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	<p>Following the 9/11 terrorist attacks, those arguing that international law cannot serve as an effective tool in the fight against terrorism have grown. The ranks of international relations realists, who view international law primarily as a cover for strategic interests and thereby as lacking any independent bite, has swelled. In November 2001, President Bush issued an executive order asserting the authority to use military commissions to try individual terrorism suspects captured by the United States. Such commissions would be conducted unilaterally and would not be required to include procedural safeguards to protect the rights of the accused. This crisis has forced us to revisit the question of what the rule of law gets us as a nation and as a people. This article argues that the Administration's treatment of detainees and the military commissions run counter to the rule of law - both domestically, by violating American constitutional protections, and internationally, by flouting established principles of international law. Far from being a straight-jacket that threatens our security, respect for legal process values and international law, will actually best serve our long-term strategic interests in containing terrorism. This article also considers how an international tribunal process could be initiated expeditiously and two alternative "quasi-international" models that have received insufficient consideration thus far. The law skeptics' perspective is also addressed at a more theoretical level, offering some tentative observations about the importance of fair adjudicatory processes despite the fact that societies are always to some degree riven by conflict.</p>

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<author>Laura T. Dickinson</author>


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<title>Military Lawyers on the Battlefield: An Empirical Account of International Law Compliance</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/538</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/538</guid>
<pubDate>Mon, 29 Apr 2013 08:07:16 PDT</pubDate>
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	<p>This empirical study, based on personal interviews, draws on insights from organizational theory to consider how military lawyers embedded with troops can help produce battlefield decisions that comply with international legal norms. These lawyers appear to be most likely to function effectively and encourage legal compliance if certain organizational features are present. Accordingly, focusing on the links between organizational structure, institutional culture, and legal compliance through more nuanced qualitative analysis should contribute to a better understanding of international law compliance.</p>

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<author>Laura T. Dickinson</author>


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<title>Toward a &apos;New&apos; New Haven School of International Law?</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/537</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/537</guid>
<pubDate>Mon, 29 Apr 2013 08:07:15 PDT</pubDate>
<description>
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	<p>We are currently in an era when the divergent methodologies of international law scholarship and the very idea that international norms might play a useful role are hotly contested. The debate about international law's impact, relevance, and role in the world has become increasingly intense as a particular version of rational choice theory, dressed up as non-normative empirical political science, has sought to advance a crabbed view of international law and to limit its influence. Scholars adhering to this view have argued that nation-state self-interest both is and should be the primary reason for forming and enforcing international law; that executive branches within states are the most legitimate agents for making and interpreting this law; and that international law has limited impact in the world. Against this backdrop, the need to define an alternative approach and call it a school becomes important because ideas advanced as part of a broader collective framework may wield more power and have greater impact. Many scholars seek to defend international law and have used a variety of methodological approaches to do so. A younger generation of international law scholars educated at Yale Law School or deeply engaged with ideas developed in New Haven have been at the forefront of these efforts. This Commentary suggests that the work of this younger generation share a number of important features that might qualify it as a new school of thought about international law - and interestingly, these features echo aspects of the original New Haven School.</p>

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<author>Laura T. Dickinson</author>


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<title>Government for Hire: Privatizing Foreign Affairs and the Problem of Accountability under International Law</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/536</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/536</guid>
<pubDate>Mon, 29 Apr 2013 08:07:14 PDT</pubDate>
<description>
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	<p>Although the privatization of governmental functions has long since become a fixture of the American political landscape and has engendered a rich scholarly debate among domestic administrative law scholars, far less attention has been paid to the simultaneous privatization of what might be called the foreign affairs functions of government. Yet privatization is as significant in the international realm as it is domestically. The United States and other countries now regularly rely on private parties to provide all forms of foreign aid, to perform once sacrosanct diplomatic tasks such as peace negotiations, and even to undertake a wide variety of military endeavors. Moreover, because most formal international law instruments apply only to governmental actors, we face the specter (as with domestic U.S. constitutional law) of private contractors falling through the cracks of the international legal regime and evading accountability altogether. Despite the magnitude of these developments, however, international law scholars have not yet focused sufficiently on privatization as a comprehensive trend in the international arena, let alone considered its implications.</p>
<p>This Article seeks to fill that gap in the literature while arguing, perhaps counter-intuitively, that privatization in the international sphere need not actually result in reduced accountability. Indeed, the opposite may sometimes be the case because, unlike in the domestic context, legal accountability is actually very difficult to achieve under international law with respect to either state or private actors. Such a failure of accountability under international law is, of course, a cause for concern. Yet it means that there may actually be more avenues of accountability over private contractors than are available with regard to state actors. This is because the very fact of privatization - with its hybrid public-private character - may open up alternative avenues of accountability beyond the formal instruments of international law. Drawing on the extensive domestic administrative law literature on privatization, I argue that international law scholars must consider these alternative avenues of accountability: democratic accountability, contractual accountability, and internal institutional accountability. Applying this expanded framework to both the privatization of military activities and foreign aid, I seek to open a dialogue between international law scholars and domestic administrative law scholars concerning the implications of privatization. In addition, the framework I articulate may allow us to more easily distinguish those circumstances in which privatization may be benign from those in which the risk of impunity is too high.</p>

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<author>Laura T. Dickinson</author>


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<title>Privatization and Accountability</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/535</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/535</guid>
<pubDate>Mon, 29 Apr 2013 08:07:13 PDT</pubDate>
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	<p>Privatization has become a dominant feature of twenty-first century governance, creating concerns about diminished accountability and oversight. However, to properly evaluate such concerns or respond to them, we must distinguish between two different forms of accountability: accountability as after-the-fact redress and accountability as managerial oversight. Moreover, each of these forms of accountability may be pursued through a variety of mechanisms or processes, including not only criminal or civil lawsuits but also reform of the contracts that are the engine of privatization; increased public participation in the design, award, and monitoring of contracts; and changes to the organizational structure or institutional culture of contractor firms. Accordingly, this review lays out a taxonomy for analyzing privatization so that we can more comprehensively evaluate both the impact of privatization and the efficacy of possible responses. In addition, the review highlights recent privatization trends in the military and foreign aid arenas, the potential impact of such privatization on core values, and possible responses.</p>

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<author>Laura T. Dickinson</author>


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<title>The Promise of Hybrid Courts</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/534</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/534</guid>
<pubDate>Mon, 29 Apr 2013 08:07:12 PDT</pubDate>
<description>
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	<p>Over the past decade, issues of accountability and reconciliation in the aftermath of mass atrocities have increasingly dominated the field of international human rights. Much of the discussion among scholars and policy-makers has focused on the relative merits of international tribunals - such as the International Tribunal for the Former Yugoslavia, the International Criminal Tribunal for Rwanda, and the newly created International Criminal Court (ICC) - and domestic approaches, such as local trials or truth commissions. Comparatively little attention has been paid, however, to a newly emerging form of accountability and reconciliation: hybrid domestic-international courts. Such courts are "hybrid" because both the institutional apparatus and the applicable law consist of a blend of the international and the domestic. Foreign judges sit alongside their domestic counterparts to try cases prosecuted and defended by teams of local lawyers working with those from other countries. The judges apply domestic law that has been reformed to accord with international standards. This hybrid model has developed in a range of settings, generally post-conflict situations where no politically viable full-fledged international tribunal exists, as in East Timor or Sierra Leone, or where an international tribunal exists but cannot cope with the sheer number of cases, as in Kosovo. Most recently, an agreement to create a hybrid court in Cambodia has been reached, and there is discussion about creating a such a court in post-war Iraq.</p>
<p>Hybrid courts have not yet been the subject of sustained analysis, even among scholars and policy-makers who focus on transitional justice issues. This article seeks to fill that gap by identifying hybrid courts as an important area of future study and making a preliminary assessment of their potential strengths and weaknesses. I look at the Kosovo, East Timor, and Sierra Leone courts, and I suggest that such courts, while not perfect, hold considerable promise as a model, particularly with regard to their perceived legitimacy (among both international and domestic constituencies), their ability to catalyze local efforts to establish rule of law institutions, and their potential to foster the development of human rights norms within emerging legal systems. Finally, I discuss ways in which hybrid courts might fit into the ICC's complementarity regime. I argue that such courts are best seen not as alternative to international or local justice, but rather as an important complement to both.</p>

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<author>Laura T. Dickinson</author>


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<title>Transitional Justice in Afghanistan: The Promise of Mixed Tribunals</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/533</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/533</guid>
<pubDate>Mon, 29 Apr 2013 08:07:11 PDT</pubDate>
<description>
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	<p>In the wake of the September 11th attacks on the World Trade Center and the Pentagon, how to apprehend, question, and punish the perpetrators remains a difficult question to answer. Moreover, the question of where, and how, to try suspects raises a series of deeper questions about the role of criminal accountability in times of conflict and war.</p>
<p>Scholars in the emerging field of transitional justice do not focus on the question of terrorism specifically, however, they study the ways in which societies that are attempting to confront past and lingering mass atrocities do so through a variety of means: criminal trials, truth commissions, civil compensation schemes, lustration programs, and so on. An exploration of how the insights derived from this body of work might be applied to the problem of terrorism in the wake of September 11th would be a fruitful source of further research.</p>
<p>This Essay is an effort to initiate that process by examining an emerging transitional justice mechanism - the mixed domestic-international tribunal - and considering the role such tribunals might play in the fight against terrorism. This brief Essay delineates the recent history of this emerging accountability mechanism, compares hybrid tribunals to international tribunals, on the one hand, and domestic tribunals, on the other, and suggests their possible use in the current climate, in a setting such as post-Taliban Afghanistan.</p>

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<author>Laura T. Dickinson</author>


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<title>Outsourcing Covert Activities</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/532</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/532</guid>
<pubDate>Mon, 29 Apr 2013 08:07:10 PDT</pubDate>
<description>
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	<p>Over the past decade, the United States has radically shifted the way it projects its power overseas. Instead of using full-time employees of foreign affairs agencies to implement its policies, the government now deploys a wide range of contractors and grantees, hired by both for-profit and nonprofit entities. Thus, while traditionally we relied on diplomats, spies, and soldiers to protect and promote our interests abroad, increasingly we have turned to hired guns. Contrast the first Gulf War to later conflicts in Iraq and Afghanistan. During the Gulf War the ratio of contractors to troops was 1 to 100; now, with approximately 260,000 contractors working for the State Department, Department of Defense (DoD), and the U.S. Agency for International Development (USAID) in Iraq and Afghanistan, that ratio has often exceeded 1 to 1. To be sure, U.S. history is rich with examples of contractors; the privateers of the Revolutionary period are a case in point. But our current turn to privatized labor does reflect a new trend, spurred by the post-Cold War decline of the standing military and the elimination of the draft, supported by the public’s faith (not always backed up by data) that the private sector can perform work more efficiently than government employees, and fueled by the exigencies of the war on terror in the aftermath of the attacks of September 11, 2001. Many of these modern contractors perform logistics functions, such as delivering meals to troops or cleaning latrines on the battlefield. Others guard diplomats, convoys, and military bases. But contractors have also gathered intelligence, interrogated detainees, and engaged in tactical maneuvers, sometimes under circumstances involving hostile fire.</p>

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<author>Laura T. Dickinson</author>


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<title>Military Lawyers, Private Contractors, and the Problem of International Law Compliance</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/531</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/531</guid>
<pubDate>Mon, 29 Apr 2013 08:07:08 PDT</pubDate>
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	<p>It is by now no secret that the United States government depends on private contractors to guard military facilities, escort convoys, conduct interrogations, train soldiers, and provide logistical support. And though private military contractors have been implicated in multiple instances of human rights violations, corruption, and waste, they are likely to become a permanent part of the military landscape. The key question, therefore, is not, should there be contractors but rather, how can we make it more likely that contractors will respect core human rights norms? And on this question, it will not be sufficient merely to focus on the degree to which these contractors are formally governed by international and domestic law. Certainly there are some gaps in our current legal framework that could usefully be amended to address the rise of contractors. But the problem is much less about the formal legal framework and much more about the subtle ways in which norm compliance actually operates on the ground. Accordingly, we need to understand how international legal norms are currently inculcated within the uniformed military, and then see whether those institutional structures are less present (or indeed are undermined entirely) in the private military context. This article draws on qualitative empirical data to begin addressing these issues. I summarize conclusions drawn from a series of interviews I conducted with U.S. military lawyers in the Judge Advocate General (JAG) Corps. These lawyers, embedded with troops in combat and consulting daily with commanders, have, to a large degree, internalized the core values inscribed in international law – respect for human rights and the imposition of limits on the use of force – and seek to operationalize those values. Of course, the lawyers are not always successful, and it would be simplistic to assume that their accounts prove that the U.S. military always obeys international law. But their stories strongly indicate that the presence of lawyers on the battlefield can help produce military decisions that are more likely to comply with international legal norms.</p>
<p>Building from this study, I suggest that differences in organizational structure and institutional culture (and not just differences in the applicable legal regime) may be principal reasons that the rise of private military firms threatens core rule of law values. In particular, the use of contractors may jeopardize certain aspects of military culture, both because the intermingling of contractors and uniformed troops on the battlefield may weaken public values within the military, and because contractors operating outside the military chain of command may themselves develop a different organizational culture and set of values that come to predominate in conflict and post-conflict situations as contractors assume ever-greater responsibilities. Finally, I take up the daunting question of how we might go about trying to reform the organizational structure and institutional culture within these contractor firms. By taking issues of organizational structure and institutional culture seriously, we can see that fostering greater compliance may sometimes be less a matter of writing new treaty provisions or increasing the activity of international courts and more a matter of subtly influencing organizations and the norms they inculcate. And while such a task is extraordinarily difficult, it is only by focusing on such organizational reforms that we can begin to address a world where states are not the only relevant agents of international law compliance and where private corporations with radically varying institutional structures are frequently the agents of human rights protection or violation.</p>

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<author>Laura T. Dickinson</author>


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<title>Public Law Values in a Privatized World</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/529</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/529</guid>
<pubDate>Thu, 25 Apr 2013 11:35:12 PDT</pubDate>
<description>
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	<p>Although domestic administrative law scholars have long debated privatization within the US, this debate has not confronted the growing phenomenon of privatization in the international realm or its impact on the values embodied in public international law. Yet, with both nation-states and international organizations increasingly privatizing foreign affairs functions, privatization is now as significant a phenomenon internationally as it is domestically. For example, states are turning to private actors to perform core military, foreign aid, and diplomatic functions. Military privatization entered the popular consciousness in 2004, when private contractors working for the US government abused detainees at Abu Ghraib prison in Iraq. But this is only the tip of the iceberg. The US is increasingly using private actors for logistical support to combat troops and to provide strategic planning and tactical advice. Other states, such as Sierra Leone, have used private contractors to engage in direct combat, and international organizations have weighed the possibilities of using private contractors to perform peacekeeping. In the foreign aid context, states and international organizations are entering into agreements with private non-profit and for-profit entities to deliver all forms of aid, including humanitarian relief, development assistance, and post-conflict reconstruction. Even diplomatic tasks such as peacekeeping negotiations are being undertaken by private actors.</p>
<p>In this Essay I suggest that the domestic U.S. administrative law literature may provide a useful set of responses to privatization that has been largely overlooked by international law scholars, policy-makers, and activists. In particular, I argue that possibilities for extending public law values inhere in the privatized relationship itself, particularly in the government contracts that are the very engine of privatization. Thus, the contracts governments enter into with non-state actors can include many provisions that would help to create both standards of behavior, performance benchmarks, and a means of providing some measure of public accountability. In this Essay, I outline nine such contractual provisions. Specifically, I suggest that contracts be drafted to: (1) explicitly extend relevant norms of public international law to private contractors, (2) specify training requirements, (3) provide for enhanced monitoring both within the government and by independent third-party monitors, (4) require accreditation, (5) establish clear performance benchmarks, (6) mandate self-evaluation by the contractors, (7) provide for governmental takeovers of failing contracts, (8) include opportunities for public participation in the contract negotiation process, and (9) enhance whistleblower protections and rights of third-party beneficiaries to enforce contractual terms. And while these provisions are not a panacea, they may be at least as effective as the relatively weak enforcement regime of public international law. At the same time, by considering the field of international privatization, I seek to open what I believe could be a fruitful dialogue between domestic administrative law scholars and international law scholars about possible responses.</p>

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<author>Laura T. Dickinson</author>


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<title>Deferred Prosecutions and Corporate Governance: An Integrated Approach to Investigation and Reform</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/530</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/530</guid>
<pubDate>Thu, 25 Apr 2013 11:26:38 PDT</pubDate>
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	<p>When evaluating how to proceed against a corporate investigative target, law enforcement authorities often ignore the target’s governance arrangements, while subsequently negotiating or imposing governance requirements, especially in deferred prosecution agreements. Ignoring governance structures and processes amid investigation can be hazardous and implementing improvised reforms afterwards may have severe unintended consequences—particularly when prescribing standardized governance devices. Drawing, in part, on new lessons from three prominent cases—Arthur Andersen, AIG and Bristol-Myers Squibb—this Article criticizes prevailing discord and urges prosecutors to contemplate corporate governance at the outset and to articulate rationales for prescribed changes. Integrating the role of corporate governance into prosecutions would promote public confidence in prosecutorial decisions to broker firm-specific governance reforms currently lacking and increase their effectiveness. The Article, therefore, contributes a novel perspective on the controversial practice: though substantial commentary urges prosecutors to avoid intruding into corporate governance, this Article explains the importance of prosecutors investing in it.</p>

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<author>Lawrence A. Cunningham</author>


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<title>The Sarbanes-Oxley Act: Legal Implications and Research Opportunities</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/528</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/528</guid>
<pubDate>Mon, 22 Apr 2013 08:17:41 PDT</pubDate>
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	<p>Congress passed the Sarbanes Oxley Act to restore investor confidence, which had been deflated by massive business and audit failures, epitomized by the demise of the Enron Corporation and Arthur Anderson LLP. The Act altered the roles and responsibilities of auditors, corporate officers, audit committee members, as well as other participants in the financial reporting process. We evaluate the potential legal implications of some of the Act's major provisions and anticipate participants' likely responses. Our evaluation suggests that these provisions will significantly change behavior, increase compliance costs and alter the legal landscape. We also identify promising avenues for future research in light of the new landscape.</p>

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<author>Lawrence A. Cunningham et al.</author>


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<title>Carrots for Vetogates: Incentive Systems to Promote Capital Market Gatekeeper Effectiveness</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/527</link>
<guid isPermaLink="true">http://scholarship.law.gwu.edu/faculty_publications/527</guid>
<pubDate>Mon, 22 Apr 2013 08:17:39 PDT</pubDate>
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	<p>This Article contributes a novel idea to the literature on capital market gatekeepers: positive incentive systems for gatekeepers to perform functions not required of them in exchange for rewards if they perform the functions successfully. Capital market gatekeeping theory relies upon the reputations that gatekeepers are assumed to command and protect backstopped by negative threats of legal liability for failure to perform legally mandated functions. The ineffectiveness of many gatekeepers during the late 1990s and early 2000s revealed practical limitations of the reputational constraint and the reforms that responded to the failures continue to emphasize the legal duties and legal liability that gatekeepers face. Adversely, that emphasis discourages gatekeepers from willingness to perform desired functions - such as to detect for fraud - whereas the positive approach induces performance of such functions. Without necessarily displacing existing reputation constraints and liability strategies, adding an incentive system as a public policy lever could promote gatekeeper effectiveness and poses little downside risk.</p>

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<author>Lawrence A. Cunningham</author>


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<title>The Influence of Law and Economics on Law and Accounting: Two Steps Forward, One Step Back</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/526</link>
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<pubDate>Mon, 22 Apr 2013 08:17:38 PDT</pubDate>
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	<p>Theory can have profound effects on practice, some intended and desirable, others unintended and undesirable. That's the story of the influence the field of law and economics has had on the domain of law and accounting. That influence comes primarily from agency theory and modern finance theory, specifically through the efficient capital market hypothesis and capital asset pricing model. Those theories have forged considerable change in federal securities regulation, accounting standard setting, state corporation law, and financial auditing. Affected areas include the nature of disclosure, the measure of financial concepts, the limits of shareholder protection, and the scope of auditor duty.</p>
<p>Analysis reveals how agency theory and finance theory often but not always point to the same policy implications; it reveals how finance theory’s assumptions and limitations are often but not always respected in policy development. As a result, while these theories sometimes produced policy changes that were both intended and desirable, some policy changes were both unintended and undesirable while others were intended but undesirable. Examination stresses the power of ideas and how they are used and cautions creators and users of ideas to take care to appreciate the limits of theory when shaping practice. That's vital since the effects of law and economics on law and accounting remain debated in many contexts.</p>

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<author>Lawrence A. Cunningham</author>


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<item>
<title>Language, Deals and Standards: The Future of XML Contracts</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/525</link>
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<pubDate>Mon, 22 Apr 2013 08:17:37 PDT</pubDate>
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	<p>eXtensible Markup Language (XML) structures information in documentary systems ranging from financial reports to medical records and business contracts. XML standards for specific applications are developed spontaneously by self-appointed technologists or entrepreneurs. XML's social and economic stakes are considerable, especially when developed for the private law of contracts. XML can reduce transaction costs but also limit the range of contractual expression and redefine the nature of law practice. So reliance on spontaneous development may be sub-optimal and identification of a more formal public standard setting model necessary. To exploit XML's advantages while minimizing risks, this Article envisions creating a publicly oriented foundation to set XML-based standards for the private law of corporate contracts. The Article's specific inquiry concerning corporate contracts illuminates XML's broader implications, making the standard-setting model it contributes adaptable to other contexts.</p>

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<author>Lawrence A. Cunningham</author>


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<item>
<title>The SEC&apos;s Global Accounting Vision: A Realistic Appraisal of a Quixotic Quest</title>
<link>http://scholarship.law.gwu.edu/faculty_publications/524</link>
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<pubDate>Mon, 22 Apr 2013 08:17:36 PDT</pubDate>
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	<p>In the most revolutionary securities law development since the New Deal, the SEC is poised to jettison rules requiring companies to apply recognized US accounting standards by inviting use of a new set of international ones created by a private London-based organization. This radical shift follows decades of gradual movement towards international standards that has gained momentum since 2005 when all listed companies in the European Union were required to use them. For the US, the SEC could give companies the option to use either or establish a medium-term plan to move US companies to international standards within a decade. Analysis of the SEC's vision for this quest reveals that it contains contradictions, paradoxes and ironies that suggest quixotic thinking. A contradiction: the SEC touts its vision as promoting comparability, yet proposes injecting choice and competition into accounting standards that would reduce it. A paradox: the SEC celebrates a single set of global standards while advocating changes that would create a double set within the US and overlooks factors that justify skepticism about the possibility of a single set of written standards translating into uniform application. An irony: the SEC acknowledges that pursuing global standards is very complex while its Chairman says the SEC has declared a war on complexity in accounting. A more realistic vision of the quest appreciates that, under either an optional or mandatory route, the shift amounts to a leap of faith posing both large costs for the US and potentially large gains for it and the world. This realistic appraisal lowers expectations about actual comparability; highlights serious risks that competing standards would impair comparability; recognizes needs the SEC has scantly examined to render elaborate infrastructural changes; and, above all, faces the realization that the abrupt shift is less about the SEC's historical mandate to protect investors than about a newly undertaken mission to expand global capitalism.</p>

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<author>Lawrence A. Cunningham</author>


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