The Limits of Capacity Building for Investment Contract Negotiations

Columbia FDI Perspectives, No. 359, June 12, 2023

3 Pages Posted: 23 Jun 2023 Last revised: 8 Aug 2023

See all articles by Karl P. Sauvant

Karl P. Sauvant

Columbia University - Columbia Center on Sustainable Investment

Vanessa S. W. Tsang

Columbia Law School

Louis T. Wells

Harvard University - Business School (HBS)

Date Written: June 12, 2023

Abstract

Developing countries must negotiate the best possible investment contracts with foreign investors at the outset. Donor organizations regularly push for “capacity building” to create technical expertise for negotiations within host country governments. But building and maintaining technical expertise within a government is a time-intensive and costly undertaking, and it often fails. Accordingly, this Perspective discusses the limits of capacity building and when capacity building may be worthwhile.

JEL Classification: international investment; MNEs; contracts; contract negotiations

Suggested Citation

Sauvant, Karl P. and Tsang, Vanessa Sze Wai and Wells, Louis T., The Limits of Capacity Building for Investment Contract Negotiations (June 12, 2023). Columbia FDI Perspectives, No. 359, June 12, 2023, Available at SSRN: https://ssrn.com/abstract=4474456

Karl P. Sauvant (Contact Author)

Columbia University - Columbia Center on Sustainable Investment ( email )

Columbia Law School
435 W 116th Street
New York, NY 10027
United States

HOME PAGE: http://https://works.bepress.com/karl_sauvant/388/

Vanessa Sze Wai Tsang

Columbia Law School ( email )

United States

Louis T. Wells

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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