BeschreibungInternational Investment Agreements (IIAs) have been introduced by governments in order to provide “insurance” against political risk and to promote the inflow of FDI. While this may contribute to overcoming the well known credibility problem in FDI, this contribution highlights econometric evidence that governments’ risk of being exposed to investor-state disputes based on IIAs increases sharply after economic crises. The fiscal pressures arising from disputes not only may hamper the recovery of countries from crises per se and promote SDGs (direct effect), but more importantly may weaken governments’ ability to attract FDI into key sectors fostering investment-related SDGs as case studies suggest (indirect effect). This will hurt especially countries, where the institutional environment is weak and crises are prevalent.
|24 Nov. 2020 → 26 Nov. 2020
|UN75 Dialogue Platform Talks