The quest for a multilateral agreement on investment (MAI): relevance and effects on developing African countries.
Foreign Direct investment (FDI) has been recognized as a vital source of development for African countries, which are mainly capital importing countries. This has led to a quest for effective regulation of the activities of foreign investors in a country while considering the profit making goals of the investors as well. As there is a need to strike a balance between the need to regulate entry and activities of investors and reaping the immense benefits of FDI such as growth and development. The regulation of FDI thus becomes important. However, there is no universal multilateral agreement on Investment (MAI) that binds most states oft the world. What we have is attempts at regional levels to regulate Investment uniformly. This quest has led to debates with many developing countries (Africa Inclusive) resisting attempts to formulate a MAI. This paper will start with an introduction of the importance of FDI as well as the various attempts that have been made to regulate FID on a multilateral level. Then the paper will go on to examine two Bilateral Investment Treaties (BITs) Botswana-China BIT on Promotion and Protection of Investments 2000,Czech-Tunisia BIT for the Promotion and Reciprocal Protection of Investment 1997, and two Free Trade Agreements (FTAs) - Chapter 11 of the North American Free Trade Agreement (NAFTA), 1990 and the investment provisions of the U.S –
School Location:South Africa
Source Type:Master's Thesis
Keywords:fdi foreign direct investment mai multilateral agreement on bits bilateral treaties african developing countries multinational enterprises mnes economic development regulation fta free trade agreements
Date of Publication:01/01/2005