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2020 | OriginalPaper | Chapter

12. Economic Diplomacy and Private Foreign Investment

Author : Charles Chatterjee

Published in: Economic Diplomacy and Foreign Policy-making

Publisher: Springer International Publishing

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Abstract

The traditional prejudices against developing countries in regard to private foreign investors particularly in respect of risks need to be changed; by the same token, some of the old-fashioned contractual terms incorporated into investment contracts based on bi-lateral treaties should be reviewed as a matter of urgency. On the other hand, developing countries, in general are required to assure private foreign investors of the impartiality of their judicial system perhaps by making them separable and separate from the executive organs of the government concerned. Although during the initial period of decolonisation the incidence of risks was high, they are now almost absent.

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Footnotes
1
See further C Chatterjee, “The Reality of Risks in Private Foreign Investments”, International Company and Commercial Law Review (1996).
 
2
See Asian Agricultural Products Ltd v Sri Lanka, 30 International Legal Materials (1991) 577.
 
3
Luther v Sagor (1921) 1 KB 456.
 
4
For a full discussion of those cases, see 53 International Law Reports, 227 and 589.
 
5
The text of the Award has been reproduced in 21 International Legal Materials (1982) 976.
 
6
Under a BOT arrangement, the foreign investor will be required to set up an industry which would be beneficial to the host country, and which would require the foreign investor to train the local people in learning the production process such that eventually they are able to manufacture high quality products which would be sold on the investor’s markets. This arrangement has at least two direct benefits: development of skills and foreign income for the host country.
 
7
The text of the Agreement has been reproduced in the United Nations Treaty Series, vol. 2009, I-34468. This treaty came into force on 25 September 1996.
 
8
This provision related to Denmark.
 
9
Resolution No. 1803.
 
10
The text of this Agreement has been reproduced in the UN Treaty Series. This Treaty came into force on 2 March 1996.
 
11
The text of this Agreement has been reproduced in the UN Treaty Series, Vol. 2032, I 35081.
 
12
The text of this Agreement has been reproduced in the UN Treaty Series, Vol. 2004, I 34348; this Agreement came into force on 1 August, 1997.
 
Metadata
Title
Economic Diplomacy and Private Foreign Investment
Author
Charles Chatterjee
Copyright Year
2020
DOI
https://doi.org/10.1007/978-3-030-49047-8_12