Inadequate arbitration on commercial development rights
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.
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 ?
The Encyclopedia of World Problems and Human Potential is a collaboration between UIA and Mankind 2000, started in 1972. It is the result of an ambitious effort to collect and present information on the problems with which humanity is confronted, as well as the challenges such problems pose to concept formation, values and development strategies. Problems included are those identified in international periodicals but especially in the documents of some 60,000 international non-profit organizations, profiled in the Yearbook of International Organizations.
The Encyclopedia includes problems which such groups choose to perceive and act upon, whether or not their existence is denied by others claiming greater expertise. Indeed such claims and counter-claims figure in many of the problem descriptions in order to reflect the often paralyzing dynamics of international debate. In the light of the interdependence demonstrated among world problems in every sector, emphasis is placed on the need for approaches which are sufficiently complex to encompass the factions, conflicts and rival worldviews that undermine collective initiative towards a promising future.
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