Unjust Enrichment and State Responsibility in Transitional Economies

Abstract

Transitional economies frequently encounter restitutionary disputes arising from state action, privatisation, and regulatory change. This article examines the role of unjust enrichment in addressing claims against the state in such contexts, focusing on jurisdictions that have undergone significant legal and economic transformation. It analyses whether unjust enrichment provides an appropriate framework for resolving disputes involving unlawful expropriation, invalid administrative action, and restitution of benefits conferred under defective legal regimes. The article evaluates the challenges of applying private law restitution principles to state conduct, particularly where considerations of public interest, legal certainty, and historical injustice intersect. It argues that while unjust enrichment offers a flexible corrective mechanism, its application must be carefully calibrated to avoid undermining democratic decision-making and fiscal stability. The article concludes by suggesting that transitional economies require a context-sensitive restitutionary framework that balances corrective justice with broader societal objectives.