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Friday March 29, 2024

News Analysis: The perils of judicial overreach

By Farrukh Saleem
April 25, 2023


KARACHI: A coup d’état is a sudden and often illegal seizure of power. The term ‘judicial coup’ refers to the illegal takeover of a government by a country’s judiciary. It is a type of coup that takes place through the manipulation or abuse of the legal system and is characterized by the judiciary acting beyond their legal power or authority. Judicial coups can take many different forms, but they generally involve the judiciary using its power to undermine the democratic process often by removing elected officials from office.

In Venezuela, the Supreme Court of Justice actually dissolved the Asamblea Nacional, the National Assembly of Venezuela. In Honduras, President Zelaya was ousted by Corte Suprema de Justicia de Honduras, the country’s supreme court. In Peru, President Fujimori was removed from office by the Supreme Court of Justice. In Hungary, the ruling party packed the courts with loyalists and used the judiciary to target political opponents.

When a judicial coup takes place, it has significant negative consequences for the economy and the country as a whole. Venezuela experienced hyperinflation, a shortage of basic goods and a decline in oil production. Over time, many international companies pulled out. In Honduras, the judicial crisis resulted in reduced foreign investment, lowered economic growth and increased uncertainty.

In Peru, one of the most significant impacts of the judicial crisis has been the decline in investor confidence. Investors become wary of investing in a country that is facing a crisis in its judicial system because it suggests that the country may not be able to uphold contracts or provide a stable investment climate.

In Hungary, the judicial crisis had a significant impact on the country’s economy. The erosion of law led to concerns among international organizations and EU member states, causing a reduction in EU funding for Hungary, which contributed to the decline in Hungary’s economic growth. In Hungary, the judicial crisis also spilled over and tarnished its reputation as a destination for international students.

There are at least half a dozen different types of coup d’états. A military coup is carried out by the military to seize power. An auto-coup is when a sitting government uses emergency powers to assume even more power. Then there’s a ‘palace coup’ a ‘proxy coup’ and a ‘hybrid coup’.

Judicial coup d’états and political instability always have serious economic consequences because investors and businesses lose confidence in the judiciary’s ability to uphold the rule of law, protect property rights and enforce contracts. Judicial coups always lead to reduced investment, lower economic growth and increased uncertainty.