The Journal of

WORLD INVESTMENT & TRADE

ABSTRACTS

J. Roman Picherack: The Expanding Scope of the Fair and Equitable Treatment Standard: Have Recent Tribunals Gone Too Far?

Recent investment arbitration decisions have expanded the scope and content of the fair and equitable treatment standard commonly found in International Investment Agreements. This paper compares the traditionally narrow scope and content of the fair and equitable treatment standard in international investment law with the more expansive obligations that arbitral tribunals have recently imposed on States as part of their duty to accord fair and equitable treatment to a foreign investor. The paper focuses specifically on three expansive obligations that tribunals have recently enforced on States by way of the fair and equitable treatment standard: 1) the obligation to fulfill the legitimate expectations of the investor; 2) the obligation to provide a stable and predictable business environment; and 3) the obligation to accord total transparency to the investor. The paper suggests that these new components of the fair and equitable treatment standard expose host States to significantly greater liability for governmental regulatory and legislative acts that may impact on a foreign investor’s investment.

J. Roman Picherack, B.C.L./LL.B. (2008) McGill University , is an Associate Fellow with the Centre for International Sustainable Development Law and will be joining the law firm of White & Case LLP in October 2008.

Rokiah Alavi, Lim Heng Gee and Ida Madieha Abdul Ghani Azmi: Does Ipr Protection Influence Economic Growth and Fdi Inflows in Malaysia ?

Evidences have shown that a strong Ipr protection implemented simultaneously with appropriate macroeconomic and science and technology policies, liberalised market, favourable business environment, and relevant education system will have positive effects on economic development. Malaysia is an upper middle income country with high standards of Ipr protection level and possesses all the necessary conditions mentioned for the Ipr system to work effectively in favour of the economy.  Hence, this study aims to empirically test the relationship between Ipr protection and the Malaysian economic development, focusing on two key economic variables, i.e. economic growth and foreign direct investments. The findings show that improvement in the IP standard in the country has positively influenced the Gdp growth and Fdi inflows in the long run.  

Rokiah Alavi is an Associate Professor at the Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia.

Lim Heng Gee is a Professor at the Faculty of Law, Universiti Teknologi Mara (UiTM), Malaysia.

Ida Madieha Abdul Ghani Azmi is a Professor at the Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia.

Badar Alam Iqbal: Doha Development Round: Developed vs Emerging Economies

Doha Development Round (Ddr) has got central stage in global trade negotiations. There has been much divergence of opinion in regard to major issues relating to agricultural, Nama and Services. But the most unfortunate thing is that neither the developed nor developing economies are showing flexible approach to arrive at a consensus on these most strategic and delicate issues having far reaching bearing on the future of global multilateral trading system which has to be survived by all costs. The paper deals with the emerging trends and issues involved in global trade negotiations. What is required is that both developing and developed must follow the policy of reciprocation and must also keep balance in negotiations.

 Badar Alam Iqbal, M.Com., Ph.D., Dba, Dsw, is Chairman of the Department of Commerce of Aligarh Muslim University in Aligarh , Uttar Pradesh , India.

Jai S. Mah: Foreign Direct Investment Inflows and Economic Development: The Case of Shenzhen Special Economic Zone in China

Since economic reform China has attracted huge amount of foreign direct investment (Fdi).  The most important measure for attracting Fdi was the establishment of several Special Economic Zones (Sezs), including Shenzhen Sez.  Impressed by its success, since 1992 the Chinese government tried to attract foreign invested enterprises in the provinces other than the Sezs.  Fdi inflows have contributed to capital formation, export earnings and employment generation, among others.  The experience of Shenzhen provides some implications for the economic development of other developing countries, which comprises: allocating its restricted resources to develop the infrastructure of the Sezs; establishing regulations/laws welcoming Fdi; attracting foreign investors who have commonalities with the host country; and the importance of foreign capital relating to the production of exportable goods and/or technology intensive goods.

Jai S. Mah, Ph.D. (Brown), is a Professor of Economics in the Division of International Studies of Ewha Womans University in Seoul , South Korea.

Ngila Mwase: Coordination and Rationalisation of Sub-Regional Economic Integration Institutions in Eastern and Southern Africa : Sacu, Sadc, Eac and Comesa

The paper examines prospects for the coordination, harmonization and rationalization of the regional economic communities (Recs) in Eastern and Southern Africa with special emphasis on Comesa, Sadc, Eac and Sacu. It examines the various efforts (studies, policy dialogue/decisions, etc) towards cutting transaction costs and enhancing scale economies through institutional rationalization including merger especially of Comesa and Sadc. It presents the rationale for merger, including a distaste of wasteful competition and duplication of effort; and reservations by some member states. Although decisions by the Policy Organs for meaningful rationalization have not been implemented, given pressure from donors–and increasingly from members states (as illustrated by country withdrawals from Comesa) the issue of the final shape of these Recs is not settled yet.

 Ngila Mwase, BA ( Dar es Salaam ), MA ( Dar es Salaam ), MA (Leicester), Ph.D. ( Newcastle-upon-Tyne ), is Senior Economic Advisor at the United Nations Development Programme in Mozambique .