Problem
Inadequate arbitration on commercial development rights
Other Names:
Lack of dispute resolution mechanisms for foreign investors Incidence:
Prospective investors are made uncomfortable by the anticipation of disagreement with a host country which, in the event of deadlock, cannot be submitted to a binding determination by a third party expert. The situation becomes most difficult if the dispute is about what standard should be established. In this case, the issue is how much damage to local interests should be permitted for the sake of a profitable development from which the government will derive needed revenues.
Broader Problems:
Decline in foreign direct investment Related Problems:
Lack of arbitrating in the commodity marketsVulnerability of small nations to foreign intervention Aggravates:
Lack of farmer protectionForeign control of natural resourcesErosion of national sovereignty by transnational enterprisesGovernment refusal to accept the jurisdiction of international courts of justice References:
Leanza, Umberto and Pharand, Donat: The Continental Shelf and the Exclusive Economic Zone: delimitation and legal regime / Le Plateau Continental de la Zone Economique Exclusive: délimitation et régime juridiqueDore, Isaak: The UNCITRAL Framework for Arbitration in Contemporary Perspective Subject(s):
Commerce → Commerce Commerce → Investment
Development → Development
Law → Arbitration
Societal Problems → Inadequacy
Societal Problems → Scarcity
Society → Foreign
Related UN Sustainable Development Goals:
Problem Type:
E: Emanations of other problems Date of last update
04.10.2020 – 22:48 CEST