This book presents original research that examines the growth of international investment agreements as a means to attract foreign direct investment (FDI) and considers how this affects the ability of capital-importing countries to pursue their development goals. The hope of countries signing such treaties is that foreign capital will accelerate transfers of technologies, create employment, and benefit the local economy through various types of linkages. But do international investment agreements in fact succeed in attracting foreign direct investment? And if so, are the sovereignty costs involved worth paying? In particular, are these costs such that they risk undermining the very purpose of attracting investors, which is to promote human development in the host country? This book uses both economic and legal analysis to answer these questions that have become central to discussions on the impact of economic globalization on human rights and human development. It explains the dangers of developing countries being tempted to 'signal' their willingness to attract investors by providing far-reaching protections to investors' rights that would annul, or at least seriously diminish, the benefits they have a right to expect from the arrival of FDI. It examines a variety of tools that could be used, by capital-exporting countries and by capital-importing countries alike, to ensure that FDI works for development, and that international investment agreements contribute to that end.
This uniquely interdisciplinary study, located at the intersection of development economics, international investment law, and international human rights is written in an accessible language, and should attract the attention of anyone who cares about the role of private investment in supporting the efforts of poor countries to climb up the development ladder.
1. Introduction : Foreign Direct Investment and Human Development, Olivier De Schutter, Jo Swinnen and Jan Wouters Part 1: The Development of International Investment Law in Historical Perspective 2. International Investment Law: the Perpetual Search for Consensus, Jan Wouters, Nicolas Hachez and Sanderijn Duquet Part 2: Economic consequences of Foreign Direct Investment 3. Foreign Direct Investment as an Engine for Economic Growth and Human Development: A Review of the Arguments and Empirical Evidence, Liesbeth Colen, Miet Maertens and Jo Swinnen 4. Determinants of Foreign Direct Investment Flows to Developing Countries: the Role of International Investment Agreements, Liesbeth Colen, Miet Maertens and Jo Swinnen 5. What Type of Foreign Direct Investment is Attracted by Bilateral Investment Treaties?, Liesbeth Colen and Andrea Guariso Part 3: Rethinking the Current Legal Framework: a Multi-Level Analysis 6. The capital-importing State : Improving the Monitoring of International Invesment Agreements at the National Level, Olivier De Schutter 7.Risk managers or Risk Promoters? The Impacts of Export Credit and Investment Insurance Agencies on Human Development and Human Rights, Matthias Sant’Ana 8. Improving the Framework of Negotiations on International Investment Agreements, Philip De Man and Jan Wouters 9. The Role of Development Banks : The European Investment Bank’s substantive and procedural accountability principles with regard to human rights, social and environmental concerns, Nicolas Hachez and Jan Wouters
The growing integration of the world economy and resulting increases in cross-border economic exchanges has been accompanied by the rapid growth of law and regulation governing these interactions. This series presents cutting-edge research in international economic law, offering fresh perspectives on what is a fast developing field.
The series surveys the key areas of international economic law: international trade law; international investment law; international financial regulation and monetary law; and related aspects of intellectual property law. Linkages with other international legal regimes are explored such as environmental law, human rights, and public health, highlighting areas where tensions may occur between economic liberalisation, sovereignty and other concerns. Books will investigate the theory, policy and practice of international economic law from a broad range of approaches allowing for innovative and scholarly assessments of the international economic legal order.