Advertisement

The Stabilization Clause / Regulatory Power Antinomy and Sustainable Development: An Introduction

  • Jola Gjuzi
Chapter

Abstract

In international investment law, stabilization clauses are used as an important tool for addressing the regulatory risk that foreign investors face when investing in a host country. These host state promises for stability made to incoming foreign investors are typically included in the contractual and legislative regime governing foreign direct investment (“FDI”) in natural resources and infrastructure. Foreign projects in such areas are characterized by long-term, large-size, and late-return investments. Additionally, they are highly regulated by the host state. Because of these features, FDI in such areas is prone to a high risk of subsequent regulatory changes potentially affecting the performance and economic viability of the project.

References

  1. Amnesty International UK. 2003. Human Rights on the Line: The Baku-Tbilisi-Ceyhan Pipeline Project. UK: Amnesty International. Accessed 31 March 2018. www.amnesty.org.uk/business.
  2. ———. 2005. Contracting Out of Human Rights: The Chad-Cameroon Pipeline Project. UK: Amnesty International. Accessed 31 March 2018. http://www.amnesty.org/en/library/info/POL34/012/2005.
  3. Behn, Daniel, and Ole Kristian Fauchald. 2017. An Introduction. Journal of World Investment and Trade 18 (1): 9.CrossRefGoogle Scholar
  4. Brower, Charles N., and Stephan W. Schill. 2009. Is Arbitration a Threat or a Boom to the Legitimacy of International Investment Law? Chicago Journal of International Law 9 (2): 471.Google Scholar
  5. Brownlie, Ian. 2008. Principles of Public International Law. 7th ed. New York: Oxford University Press.Google Scholar
  6. Franck, Susan D. 2005. The Legitimacy Crisis in Investment Treaty Arbitration: Privatizing Public International Law Through Inconsistent Decisions. Fordham Law Review 73: 1521.Google Scholar
  7. Gazzini, Tarcisio. 2017. Beware of Freezing Clauses in International Investment Agreements. Columbia FDI Perspectives: Perspectives on topical foreign direct investment issues 191. Accessed 31 March 2018. http://ccsi.columbia.edu/publications/columbia-fdi-perspectives/.
  8. Gehring, Markus W., and Andrew Newcombe. 2011. An Introduction to Sustainable Development in World Investment Law. In Sustainable Development in World Investment Law, ed. Marie-Claire Cordonier Segger, Markus W. Gehring, and Andrew Newcombe, 6. The Netherlands: Kluwer Law International.Google Scholar
  9. Global Witness. 2006. Heavy Mittal? A State Within a State: The Inequitable Mineral Development Agreement Between the Government of Liberia and Mittal Steel Holdings NV. Accessed 31 March 2018. https://www.globalwitness.org/sites/default/files/pdfs/mittal_steel_en_oct_2006_high_res.pdf.
  10. Leader, Sheldon. 2006. Human Rights, Risks, and New Strategies for Global Investment. Journal of International Economic Law 9 (3): 657.CrossRefGoogle Scholar
  11. Nieuwenkamp, Roel, and Kimmo Sinivuori. 2014. The Road to Responsible Investment Treaties. Columbia FDI Perspectives: Perspectives on topical foreign direct investment issues 134. Accessed 31 March 2018. http://ccsi.columbia.edu/publications/columbia-fdi-perspectives/.
  12. Ӧgütçü, Mehmet. 2002. New Horizons for International Investment and Sustainable Development. The Journal of World Investment 3 (3): 455.CrossRefGoogle Scholar
  13. Shemberg, Andrea. 2009. Stabilization Clauses and Human Rights: A Research Project Conducted for IFC and the United Nations Special Representative of the Secretary-General on Business and Human Rights. Accessed 31 March 2018. http://www.ifc.org/wps/wcm/connect/9feb5b00488555eab8c4fa6a6515bb18/Stabilization%2BPaper.pdf?MOD=AJPERES.
  14. Tienhaara, Kyla. 2008. Unilateral Commitments to Investment Protection: Does the Promise of Stability Restrict Environmental Policy Development? Yearbook of International Environmental Law 17: 139.CrossRefGoogle Scholar
  15. United Nations Conference on Trade and Development (UNCTAD). 2003. World Investment Report 2003: FDI Policies for Development: National and International Perspectives. New York: United Nations.Google Scholar
  16. ———. 2008. World Investment Report 2008: Transnational Corporations and the Infrastructure Challenge. New York: United Nations.CrossRefGoogle Scholar
  17. ———. 2012. Investment Policy Framework for Sustainable Development (IPFSD). New York: United Nations.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  • Jola Gjuzi
    • 1
  1. 1.Kalo & Associates Law FirmTiranaAlbania

Personalised recommendations