Investment Protection Along the Belt and Road
This paper examines the level of investment protection for selected countries along the Belt &Road Initiative (BRI), based on coding the textual content of 17 investment laws and 648international investment agreements (IIAs). We find substantial heterogeneity in the levels ofprotection provided in the reviewed laws and IIAs, and consequently along the same BRI corridorsand projects. Moreover, the current lack of effective enforcement – as shown by past treatyviolations and lack of efficient domestic court systems – poses an additional layer of risk forinvestors. Substantive improvements and harmonization in standards of treatment and recoursemechanisms in these legal instruments can help reduce investment risks. Given the scale of plannedinvestments, to minimize dispute risks, BRI governments will need to ensure full understandingof their law and treaty commitments and strengthen the capacity to enforce them.
| Main Authors: | , |
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019-01-24
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| Subjects: | INVESTMENT BARRIERS, INTERNATIONAL INVESTMENT LAW, INTERNATIONAL INVESTMENT AGREEMENTS, BELT AND ROAD INITIATIVE, FOREIGN DIRECT INVESTMENT, DISPUTE RESOLUTION, RISK MANAGEMENT, TREATIES, |
| Online Access: | http://documents.worldbank.org/curated/en/373561548341008857/Investment-Protection-Along-the-Belt-and-Road https://hdl.handle.net/10986/31247 |
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| Summary: | This paper examines the level of
investment protection for selected countries along the Belt
&Road Initiative (BRI), based on coding the textual
content of 17 investment laws and 648international
investment agreements (IIAs). We find substantial
heterogeneity in the levels ofprotection provided in the
reviewed laws and IIAs, and consequently along the same BRI
corridorsand projects. Moreover, the current lack of
effective enforcement – as shown by past treatyviolations
and lack of efficient domestic court systems – poses an
additional layer of risk forinvestors. Substantive
improvements and harmonization in standards of treatment and
recoursemechanisms in these legal instruments can help
reduce investment risks. Given the scale of
plannedinvestments, to minimize dispute risks, BRI
governments will need to ensure full understandingof their
law and treaty commitments and strengthen the capacity to
enforce them. |
|---|