Inadequate arbitration on commercial development rights

Other Names:
Lack of dispute resolution mechanisms for foreign investors
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.
Counter Claim:
Governments in most developing countries are now prepared to agree to dispute settlement provisions involving international arbitration or expert determination. But the particular situation will always be tempered by the question: would it be right or, indeed feasible politically, for governments to allow foreigners to decide on issues which may involve for its own people balancing the advantage of increased revenue from a development project against the disadvantage of environmental damage ?
Problem Type:
E: Emanations of other problems
Related UN Sustainable Development Goals:
GOAL 1: No PovertyGOAL 2: Zero HungerGOAL 3: Good Health and Well-beingGOAL 4: Quality EducationGOAL 5: Gender EqualityGOAL 6: Clean Water and SanitationGOAL 7: Affordable and Clean EnergyGOAL 8: Decent Work and Economic GrowthGOAL 9: Industry, Innovation and InfrastructureGOAL 10: Reduced InequalityGOAL 11: Sustainable Cities and CommunitiesGOAL 12: Responsible Consumption and ProductionGOAL 13: Climate ActionGOAL 14: Life Below WaterGOAL 15: Life on LandGOAL 16: Peace and Justice Strong InstitutionsGOAL 17: Partnerships to achieve the Goal
Date of last update
01.01.2000 – 00:00 CET