Obsolescence of the Obsolescing Bargain: Why Governments Must Get Investor-State Contracts Right
Columbia FDI Perspectives 2021
3 Pages Posted: 24 Mar 2021
Date Written: February 22, 2021
Gone are the days when governments could easily renegotiate natural resource and other investment contracts if foreign investors, e.g., reaped bonanzas from rising resource prices, surprisingly rich discoveries, or terms that were too favorable. Today, international investment agreements protect investors from renegotiation if they do not wish to do so. Hence, governments must get initial contracts right, including providing for possible future events.
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