Making Foreign Investment Safe: Property Rights And National Sovereignty
With real case stories, Wells and Ahmed bring to life both the hopes for and the failures of international guarantees of property rights for investors in the developing world. Their cases focus on infrastructure projects, but the lessons apply equally to many other investments. In the 1990's inexperienced firms from rich countries jumped directly into huge projects in some of the world's least developed countries. Their investments reflected almost unbridled enthusiasm for emerging markets and trust in new international guarantees. Yet within a few years the business pages of the world press were reporting an exploding number of serious disputes between foreign investors and governments. As the expected bonanzas proved elusive and the protections weaker than anticipated, many foreign investors became disenchanted with emerging markets. So bad were the outcomes in some cases that a few notable infrastructure firms came close to bankruptcy; several others hurriedly fled poor countries as projects soured.
In this book, Louis Wells and Rafiq Ahmed show why disputes developed, point out how investments and disputes have changed over time, explore why various firms responded differently to crises, and question the basic wisdom of some of the enthusiasm for privatization. The authors tell how firms, countries, and multilateral development organizations can build a conflict-management system that balances the legitimate economic and social concerns of the host countries and those of investors. Without these changes, multinational corporations will lose profitable opportunities and poor countries will not gain the contributions that foreign investment can make toward alleviating poverty.
What people are saying - Write a review
We haven't found any reviews in the usual places.
State Takeover of Infrastructure 19671980
Foreign Investment in a Risky Environment
17 other sections not shown
Other editions - View all
accessed April 2006 accessed August 2004 Adaro advisors American arbitration Asia Asian award Bambang CalEnergy cents/kwh claim company's contract Corporation corruption cost court deal debt decision developing countries disputes donesia economic Edison Mission Energy electric power Enron equity firm foreign investors geothermal Ginandjar guarantees Gus Dur Habibie Hartarto Harvard Hashim host governments ICSID Indonesian government Indosat infrastructure interest International investment issue ITT's Jakarta Post Japanese Jezek Karaha Bodas Kuntoro lawyer loan March megawatts ment MIGA million mines and energy Mission moral hazard multilateral offer officials OPIC owners ownership Paiton Parapak Pare-Pare parties partner Patuha payments Pertamina Perumtel PLN's political risk insurance power plants power purchase agreement president private power Priyatna problems property rights renegotiations reported rupiah state-owned story Suharto Sukarno Sumarlin Tanjung Jati Tanri Abeng telecommunications told U.S. government United Wall Street Journal World Bank