Open AccessRegional Model Bit’s : A New Down For the Developing Countries
Author(s) -
Abdallah Mohamed Othman El Nofely,
Rehna Gul
Publication year - 2021
Publication title -
sociological jurisprudence journal
Language(s) - English
Resource type - Journals
eISSN - 2615-8795
pISSN - 2615-8809
DOI - 10.22225/scj.4.2.2021.114-121
Subject(s) - developing country , foreign direct investment , expropriation , sovereignty , business , compensation (psychology) , unemployment , economics , international economics , international trade , development economics , market economy , economic growth , political science , law , macroeconomics , politics , psychology , psychoanalysis
Foreign direct investment (FDI) plays a crucial role in the economic sector, particularly in developing countries. BIT lays down instrumental principles which help to protect investors’ establishments in host states, by inter alia encouraging prompt compensation in case of expropriation. Governments need FDIs to gear up their economic growth, advance technology, and scale down unemployment. Most scholarly writings are in favor that BIT is a necessary tool for promoting FDIs, however this study takes a different approach and categorically unveils the draw backs of BIT in developing countries by highlighting some of the contentious provisions that have sparked unprecedented legal, economic, sociopolitical and diplomatic strife between the host countries, investors and investors’ home countries. Therefore, the author proposes development for regional Model BITs that would go in line with national laws to curtail the persisting sovereignty and socio-economic challenges.