Public Law Studies Quarterly

Foreign Investor's Commitment to the Economic Development of the Host State in Line with the Concept of Sustainable Development

Document Type : Article

Authors

Seyed Mohammad Hassan Razavi 1
Mahsa Rezagholi 2

1 Assistant Pro, Faculty of Law and Political Science, University of Tehran, Tehran, Iran

2 Ph.D. Student in (International Law), Faculty of Law and Political Science, University of Tehran, Tehran, Iran

https://doi.org/10.22059/jplsq.2023.353076.3245
Abstract
Based on the definition of foreign investment and its elements in law, it is contended that the investor should contribute to the economic development of the host state so that the latter’s action is considered an investment. In recent decades, with the growing importance of subject-areas like human, environmental, and labor rights, the act of investing has gone beyond the mere economic/financial concept and, has developed in line with the concept of sustainable development. In this regard, some commentators have considered it permissible and necessary to limit the scope of the permitted activities of the foreign investors within the frame of the concept of sustainable development. So much so that in recent arbitral decisions and international investment agreements, creating a platform for the development of the host state is considered a new component of foreign investment in line with the requirements of human rights, labor and environment rights. 

Keywords

development
host state
investment
foreign investor
Subjects

  1. English

    1. A) Books
    2. Williams, D. AR. & Simon., F. (2011). Recent developments in the approach to identifying an “investment” pursuant to Article 25 (1) of the ICSID Convention.in Brown, C., & Miles, K. (Eds.). Evolution in investment treaty law and arbitration. Cambridge University Press.
    3. Cotula, L. (2016). Foreign Investment, Law and Sustainable Development: A Handbook on Agriculture and Extractive Industries. the University of Wisconsin – Madison. International Institute for Environment and Development.
    4. Schrijver, N. (1997). Sovereignty over natural resources: balancing rights and duties. Cambridge: Cambridge University Press.
    5. Schreuer, C. H. (2009). The ICSID Convention: a commentary. Cambridge University Press.
    6. Schrijver, N. J. (2008). The evolution of sustainable development in international law: inception, meaning and status. Vol.2, Martinus Nijhoff Publishers.
    7. Neumayer, E. (2001). Greening trade and investment: environmental protection without protectionism. London. Earthescan Publication Ltd.

     

    1. B) Articles
    2. Lamm Carolyn, B., & Abby Cohen, S. (1996). The Implementation of ICSID Arbitration Agreements. ICSID Review, 11(1), pp 64-85.
    3. Silveira Mary Pat Williams & Ruis Barbara. (1996). International law for sustainable development: an attempt at definition. NAFTA: Law & Bus. Rev. Am.,  2-12.
    4. Muñoz Haraldo. (1994). The"Green" vs. Trade Debate in the Americas. The Journal of Environment & Development, 3(1), 109-122.
    5. Grabowski, A. (2014). The definition of investment under the ICSID Convention: a defense of Salini.  J. Int'l L., (15). 287-309.
    6. Schrijver, N. (2020). 2019 aiib Law Lecture: The Rise of Sustainable Development in International Investment Law. In The Role of International Administrative Law at International Organizations, 297-314.
    7. Ruggie, J. G. (2014). A UN Business and Human Rights Treaty Update. HARVARD Kennedy School, 1-3.
    8. Muchlinski, P. (2006). Caveat investor’? The relevance of the conduct of the investor under the fair and equitable treatment standard. International & Comparative Law Quarterly, 55(3), 527-558.
    9. Sattorova, M. (2019). Investor Responsibilities from a Host State Perspective: Qualitative Data and Proposals for Treaty Reform. AJIL Unbound, (113), 22-27. doi:10.1017/aju.2018.93

     

    1. C) Instruments
    2. A. Res. 47/191, U.N. GAOR, 47th Sess., 93rd Mtg., U.N. Doc. A.47/49 (1992)
    3. OECD Benchmark Definition of Foreign Direct Investment (2008). Forth Edition
    4. World Commission on Environment and Development (1987)
    5. 2012 US Model BIT; 2019 Belgium-Luxembourg Economic Union Model BIT
    6. World Bank, (1992). Guidelines on treatment of foreign investments

     

    1. D) Decisions
    2. Salini Costruttori S.P.A and Italstrade S.P.A v. Kingdom of Morocco, ICSID Case No. ARB/00/4, (23 July 2001).
    3. Romak S.A. v The Republic of Uzbekistan, PCA Case No. AA280, Award, ¶ 180 (26. Nov.2009).
    4. Patrick Mitchell v. The Democratic Republic of Congo, ICSID Case No. ARB/99/7, Decision on annulment¶ 30, ¶ 33 (11 January 2006).
    5. C.I Power Group, Inc. v. Republic of Ecuador, ICSID Case No. ARB/03/6, Award (31 July 2007).
    6. Mihaly International Co. v. Republic of Sri Lanka (ICSID Case No. ARB/00/2, Award, ¶ 2 (15 March 2002); CMS Gas Transmission Co. v. Argentine Republic, ICSID Case No. ARB/01/8, Decision on Annulment, ¶ 71 (25.09.2007).
    7. Deutsche Bank AG v. Democratic Socialist Republic of Sri Lanka, ICSID Case No. ARB/09/02, Award (Oct. 31, 2012).
    8. Saba Fakes v. Republic of Turk., ICSID Case No. ARB/07/20, Award, T 110 (Jul. 14, 2010).
    9. Victor Pey Casado and President Allende Found. v. Republic of Chile, ICSID Case No. ARB/98/2, Award, 232 (May 8, 2008).
    10. V. THE REPUBLIC OF VENEZUELA. Case No. ARB/96/3. Decision of the Tribunal on Objections to Jurisdiction. July II, 1997
    11. MALAYSIAN HISTORICAL SALVORS SDN, BHD v THE GOVERNMENT OF MALAYSIA. (ICSID Case No. ARB/05/10). AWARD ON JURISDICTION. May 17, 2007.
    12. Inceysa Vallisoletana S.L. v. Republic of El Salvador, ICSID Case No. ARB/03/26. august 2 .2006
    13. World Duty Free v. Kenya, ICSID Case No. ARB/00/7, Award, Oct. 4, 2006
    14. World Duty-Free v. Kenya, ICSID Case No. ARB/00/7, Award, Oct. 4, 2006
    15. Saba Fakes v. Republic of Turkey, ICSID Case No. ARB/07/20, Avard, Jul, 14, 2010

     

    1. E) Websites
    2. https://icsid.worldbank.org/
    3. https://www.ohchr.org/
    4. https://unctad.org/
    5. https://investmentpolicy.unctad.org/
    6. https://icsid.worldbank.org/
    7. https://au.int/
    8. sice.oas.org

     

    References in Persian:

    1. A) Books
    2. Ensafi Azar, B. (2018). The Conception of Investor in the International Arbitration Precedent. Tehran: The SD Institute of Law Research & Study (S.D.I.L), Second Edition (In Persian).
    3. Dolzer, Rudolf & Schreuer, Christoph (2016). Principles of International Investment Law. Translated by Seyed Ghasem Zamani & Behazin Hasibi, Tehran: The SD Institute of Law Research & Study (S.D.I.L) (In Persian).

     

    1. B) Articles
    2. Ebrahimi, S. N., & & Solatan Zadeh, S. (2014). The Concept of Investment in the International Centre for Settlement of Investment Disputes (ICSID) procedure. International Law Review, (50), 77-108 (In Persian).
    3. Nikbakht, H. R., Beyk Mohammadi, M., & Bagheri, F. (2020). A Legal Approach to New Arrangements in Investment Treaties and its Impact on Sustainable Development. Public Law Studies Quarterly, (1), 217-238 (In Persian).

     

    1. C) Thesis
    2. Motamedi, A. (1397). The Role of Foreign Investments Arbitration Tribunals in Consolidation of Human Rights Obligations for Transnational Corporations (Case Study of Argentina’s Counter-claim against Urbaser Corporation). LLM in Human Rights, Faculty of Law and Political Sciences, Allameh Tabataba’i University (In Persian).
    3. Nasrollahi Shahri, N. (1396). The Position of Human Rights Rules In ICSID Structure and Case Law. PhD in Public International Law, Faculty of Law and Political Sciences, Allameh Tabataba’i University (In Persian).
Public Law Studies Quarterly
Volume 54, Issue 3
Autumn 2024
Autumn 2024
Pages 1435-1459

  • Receive Date 01 January 2023
  • Revise Date 09 May 2023
  • Accept Date 10 September 2023

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