International Investment Law As An Instrument For Sustainable Development

6515 Words Aug 3rd, 2015 null Page
International investment law as an instrument for sustainable development
The relation between international investment law and sustainable development is ?two sided?.[footnoteRef:2] This statement is also supported by Newcombe, he states sustainable development is indeed needed in the future, thus, foreign direct investment (FDI) could be the main instrument to ensure any development agenda.[footnoteRef:3] Furthermore, Foreign direct investment also contributes toward financing sustained economic growth over the long term. In other words, the incorporation of sustainable development in international economic policies, negotiations, and agreements could ensure the growth of development more directly to the sustainable way. However, international investment law has been traditionally interpreted as a solely protection for foreign investors, this is because foreign investments tend to be discriminated by host state. In the worst situation, foreign investments could be nationalized or expropriated without proper compensation. From the host state point of view, international investment law and investment agreements are the instruments which states agree to grant standard of treatments to foreign investors.[footnoteRef:4] In detail, international Investment agreements require rule of law, due process, and non-discrimination; prohibit arbitrary conduct; and ensure respect for a foreign investor?s legitimate expectations and property rights.[footnoteRef:5] From the perspective of…

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