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21. The public law challenge: Killing or rethinking international investment law?

Author:
Stephan W. Schill
Publication Date:
01-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
At the heart of the so-called “legitimacy crisis” of international investment law, prominently reflected in the Public Statement on the International Investment Regime, is what I call the public law challenge. It builds on the observation that one-off appointed arbitrators, instead of standing courts, review government acts and reach far into the sphere of domestic public law by crafting and refining the standards governing in vestor-state relations. Arbitrations against Uruguay and Australia concerning cigarette packaging are the most recent examples of genuinely public law disputes now settled in arbitration. The disputes about Argentina's emergency legislation and Canada's ban on pesticide s are others. These arbitrations create friction with domestic public law as arbitrators, having little democratic legitimacy, often operate in non-transparent proceedings and produce increasing amounts of incoherent decisions.
Topic:
Economics, International Law, International Trade and Finance, Markets, and Foreign Direct Investment
Political Geography:
Canada, Argentina, and Australia

22. The standing of state-controlled entities under the ICSID Convention: Two key considerations

Author:
Mark Feldman
Publication Date:
04-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The ICSID Convention, under Article 25(1), applies only to those investment disputes that are between a contracting state and a “national” of another contracting state. Given that limitation, and in light of the significant and growing amount of foreign investment by state-controlled entities (SCEs), ICSID tribunals likely will need to address one fundamental issue with greater frequency: whether disputes arising from SCE investments constitute investor-state disputes falling within, or state-to-state disputes falling outside of, the scope of the ICSID Convention.
Topic:
Development, Economics, Markets, Foreign Direct Investment, and Governance

23. FDI, catch-up growth stages and stage-focused strategies

Author:
Terutomo Ozawa
Publication Date:
05-2012
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
This is a reply to Francisco Sercovich's commentary on my Perspective on FDI-led industrial takeoff in which I described foreign direct investment (FDI) as an ignition for catch-up industrialization. He emphasized "the rich and nuanced variety of strategic options" (e.g., S policies, engineering education, chaebol-type enterprises for technology absorption, R capabilities), which are, however, relevant only to higher-stages of catch-up, but notto the kick-off stage with which my previous Perspective was concerned. Economic development derives from structural changes at different stages of growth, requiring stages-focused strategies.
Topic:
Development, Economics, International Trade and Finance, Markets, and Foreign Direct Investment

24. Inward FDI in Pakistan and its policy context

Author:
Khalil Hamdani
Publication Date:
01-2011
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Pakistan's large domestic market and policy environment are generally attractive to foreign direct investment, but terrorist violence and natural disasters are keeping investors at bay. Pakistan was the tenth largest recipient of inward foreign direct investment (IFDI) in Asia in 2006-2008. Pakistan has also been successful in attracting investment from other developing countries. There are successful joint ventures with parastatals. The policy regime is investorfriendly, and doing business in Pakistan is easier than in any of its neighboring countries. These advantages notwithstanding, inward FDI flows shrank by 60% in 2009-2010, a reflection of global trends and internal difficulties. Governance and terrorism are overriding preoccupations. Retaining the confidence of both foreign and domestic investors is vital. Determined efforts are needed to realize the country's considerable market potential.
Topic:
Economics, Markets, and Foreign Direct Investment
Political Geography:
Pakistan, South Asia, and Asia

25. Outward FDI from Italy and its policy context

Author:
Marco Mutinelli and Lucia Piscitello
Publication Date:
01-2011
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Italian companies started to invest abroad in the 1960s in search of new markets. However, Italy's outward foreign direct investment (OFDI) performance is quite modest compared with that of other European Union (EU) countries, mainly due to structural characteristics like the low number of large firms, the specialization in traditional low-and medium-technology manufacturing industries and the almost negligible activity in advanced services. The global economic and financial crisis seriously affected the Italian economy. However, the positive trend of Italian OFDI was not interrupted, and in 2009 OFDI flows remained stable compared to 2008. Habitually silent on this policy area in earlier decades, the Italian Government has recently shown a more favorable stance toward OFDI, introducing specific policy measures addressed to small and medium-sized enterprises, which have started to expand strongly abroad – these now constitute almost 90% of Italian multinational enterprises (MNEs).
Topic:
Markets and Foreign Direct Investment
Political Geography:
Europe and Italy

26. Responsible agricultural investment: is there a significant role for the law to promote sustainability?

Author:
Nicolás Marcelo Perrone
Publication Date:
05-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
The world food situation is back in the headlines as price levels surpass 2008 peaks, confirming the rising trend in food markets. Higher prices pose challenges to both food importing and exporting countries. One serious barrier to increasing food output remains the lack of necessary capital and technology in countries that have the potential to increase production rapidly. To avoid a food crisis, international organizations and several governments have increasingly turned to promoting foreign direct investment (FDI) by multinational enterprises (MNEs) in agriculture. This may be an effective solution, but some obstacles stand in the way of the establishment of such projects and, more importantly, their long-term sustainability.
Topic:
Agriculture, Economics, Markets, Food, and Foreign Direct Investment

27. Are resurging state-owned enterprises impeding competition overseas?

Author:
Nilgün Gökgür
Publication Date:
04-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
There are no up-to-date systematic data on the size, composition, ownership structure, and economic weight of state-owned enterprises (SOEs), so we are unable to assess the impact of SOE performance on stakeholders in domestic and overseas markets. Yet there is sufficient evidence of their expansion, especially following the 2008 financial crisis. Emerging markets, led by China, are now increasingly encouraging their SOEs to expand globally as multinational enterprises (MNEs).
Topic:
Economics, Emerging Markets, Globalization, and Markets
Political Geography:
Africa and China

28. Inward FDI in Israel and its policy context

Author:
Yair Aharoni
Publication Date:
01-2011
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
In the first four decades of its existence, Israel was not successful in attracting inward foreign direct investment (IFDI) despite attempts to do so. In the past two decades, Israel have become a haven for multinational enterprises (MNEs) that have taken advantage of its unique assets – among them a skilled, educated workforce and cutting-edge research-and-development (R) capabilities – by establishing production lines or R centers and acquiring dozens of successful start ups. Israel's IFDI stock sharply increased from US$ 4.5 billion in 1990 to US$ 71.3 billion in 2009. It is expected that IFDI will further accelerate following Israel's accession to the OECD in May 2010 and as more firms from emerging market economies, including China and India, will come to appreciate its characteristics as an ideal locational choice. Israel also weathered the global economic crisis well, even though IFDI declined sharply. Israel actively encourages IFDI, mainly in high technology areas. In 2010, the Government also created special incentives to attract research centers of financial institutions.
Topic:
Economics, Markets, Foreign Direct Investment, and Financial Crisis
Political Geography:
China, Middle East, India, and Israel

29. Outward FDI from Poland and its policy context, 2011

Author:
Zbigniew Zimny
Publication Date:
06-2011
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
During the transition toward a market economy, for many years Poland's outward foreign direct investment (OFDI) was small and limited to trade-supporting activities in key export markets. It took off and started growing rapidly only five or six years ago, when the Polish private sector had matured enough to start generating home-grown multinational enterprises (MNEs). Some state-owned enterprises (SOEs) began also investing abroad, sometimes with the Government's encouragement. By contrast, in terms of private companies, Poland adopted a laissez-faire policy, leaving the emergence and expansion of private MNEs to market forces. In addition, Poland became a source and a transit country for large cross-border flows of funds among units of foreign and Polish firms, classified as FD I flows, artificially inflating OFDI. In the first year of the worldwide financial and economic crisis (2008) OFDI flows declined rather modestly to start growing again in 2009 and 2010 due to a relatively good performance of the Polish economy during the crisis.
Topic:
Economics, Industrial Policy, Markets, Foreign Direct Investment, and Financial Crisis
Political Geography:
Poland

30. FDI stocks are a biased measure of foreign affiliate activity

Author:
Sjoerd Beugelsdijk, Jean-François Hennart, Arjen Slangen, and Roger Smeets
Publication Date:
08-2011
Content Type:
Policy Brief
Institution:
Columbia Center on Sustainable Investment
Abstract:
Researchers often call the value added (VA) in a host country by firms based in another country foreign direct investment (FDI) and use FDI stocks and flows from a country's balance of payments to measure it. What FDI stocks and flows actually measure, however, is narrower, since they record long term financial transactions by which domestic firms exert control over foreign firms. French FDI stocks in Australia, for example, measure the value of shares and reinvested earnings of Australian firms owned by French firms and the net indebtedness of these Australian firms to their French parents.
Topic:
Economics, Markets, Foreign Direct Investment, and Financial Crisis
Political Geography:
France and Australia