The longue durée of extraterritoriality and global capital

ABSTRACT This article investigates the shifting nature of the concept of extraterritoriality at particular junctures in history from the Italian city states to contemporary visions of floating micro-sovereignties. Extraterritoriality is the exercise of the jurisdiction by one state or non-state actor within the territory of another state. Since extraterritoriality is a challenge to the fundamental principle of sovereignty, it is by definition an exception in relation to sovereignty. As sovereignty evolved and changed over time, so did extraterritoriality – and, in the discussed cases, it changed primarily to be able to fulfil the needs of agents of global capital. The article discusses the privileges granted to the Italian city states by the Byzantines and the Ottoman capitulations, extraterritoriality on the colonial frontier, private investments in the Middle East and the proliferation of ideas of micro-sovereignty by Libertarian politicians and Silicon Valley billionaires. The article makes three distinct arguments: first, extraterritoriality has to be understood in relation to shifting notions of sovereignty. Secondly, extraterritoriality emerged within the context of colonial and imperial inequality and any extraterritorial relations contain the echoes of these structures of inequality. Finally, extraterritoriality is often driven and shaped by the needs of global capital, trying to avoid specific sovereign structures.