Colonization Through Contracts: A Juridical Analysis of State Contracts with Transnational Corporations from the Perspective of Jurisdictional Law and Maritime Spatial Utilization
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Abstract
The phenomenon of "colonization through contracts" in the globalization era has become a critical issue within the framework of jurisdictional law and maritime space utilization. This article examines how transnational corporations (TNCs) leverage asymmetric contractual arrangements with sovereign states particularly those involving the exploitation of maritime resources to create conditions that result in the erosion of state sovereignty and the imposition of collective national-level losses rather than personal ones. Using a normative juridical methodology supplemented by comparative and case-study approaches, this research analyzes the structural disadvantages embedded in contracts between developing states and TNCs, with emphasis on clauses that bind the state in its sovereign capacity thereby rendering any loss incurred a loss for the entire nation rather than merely for individual officials or agencies. The study examines critical contractual clauses including stabilization, ISDS, MFN, and choice-of-law provisions, as well as the legal framework under UNCLOS 1982 relating to maritime jurisdictional zones and sovereign rights. Through examination of international arbitration cases including those involving Indonesia, the article demonstrates that states bear collective responsibility for negotiation failures. The article argues that state sovereignty is fundamentally placed at risk when inadequate legal expertise governs contract negotiation processes, and recommends that states establish expert legal negotiating teams, model contract frameworks, and independent review mechanisms for all transnational contracts involving sovereign or maritime rights.
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