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The +a+er %ill stu'-, ai$l- u$'er the +oi$t o& "ie% o& i$ter$atio$al la%, the relatio$ bet%ee$

$atural resources, &orei#$ i$"este$ts a$' eco$oic 'e"elo+e$t i$ thir' %orl' cou$tries, &ocusi$#

o$ the role the +ri$ci+le o& +era$e$t so"erei#$t- o"er $atural resources has +la-e', a$' still ca$

+la-, i$ this co$te*t( The a$al-sis %ill start &ro the 'ecolo$iatio$ +erio', %he$ $e%l-

i$'e+e$'e$t States, i$ a$ atte+t to stre$#the$ their eco$oic i$'e+e$'e$ce, re;ecte' the s-ste o&

i$ter$atio$al eco$oic relatio$s i$ &orce that tie a$', inter alia, elaborate' the +ri$ci+le o&

+era$e$t so"erei#$t- o"er $atural resources( The +a+er %ill stu'- the 'ocue$ts a$' the

i$ter$atio$al i$strue$ts +roclaii$# such +ri$ci+le< it %ill i$"esti#ate %hether the- ha"e coe to

re+ro'uce a rule o& custoar- i$ter$atio$al la% a$', &i$all-, %hether the ri#ht o"er $atural resources

coul' be re#ar'e' as a$ absolute ri#ht( !$ a''itio$ it %ill be 'iscusse' %hether the be$e&iciaries o&

such ri#hts shoul' be the States or the +eo+les< it %ill be e*+lai$e' %h- the latter o+tio$ is to be

+re&erre' a$' the i+licatio$ this i#ht ha"e(

Whe$ a$al-si$# the atte+ts u$'erta9e$ b- 'e"elo+i$# cou$tries to +ut this +ri$ci+le i$ +ractise,

+articular atte$tio$ %ill be +ai' to $atio$aliatio$s, e*+ro+riatio$s a$' re$e#otiatio$s o& co$cessio$

a#reee$ts %hich %ere u$'erta9e$ i$ the 1=3s a$' 1=43s, as %ell as the reactio$ o& 'e"elo+e'

cou$tries( The$ it %ill be a$al-se' ho%, i$ the &ollo%i$# -ears, the +ri$ci+le o& so"erei#$t- o"er

$atural resources has 'isisse' soe o& the ost ra'ical as+ects o& the &orulatio$ it %as #i"e$ i$

the 1=3s( !t %ill be ar#ue' that it has lost its character o& absolute ri#ht, as it ha' to be reco$cile'

%ith $e% restrictio$s i+ose' o$ States b- the 'e"elo+e$t o& i$ter$atio$al e$"iro$e$tal la% a$',

to a #reater e*te$t, o& i$ter$atio$al i$"este$t la% >%hich %as e$ha$ce' b- the rise o& the $uber

o& bilateral i$"este$t treaties?( !$ &act, it %ill be stresse' that i$ the 1==3s 'e"elo+i$# cou$tries

ha"e i$creasi$#l- acce+te' i$"este$ts &ro &orei#$ &irs a$' that this cha$#e i$ attitu'e, %he$

cobi$e' %ith ore e@uitable ters o& co$tracts &or the e*+loitatio$ o& $atural resources a$' %ith

i+ro"e' i$stitutio$s a$' +olicies i$ 'e"elo+i$# cou$tries, ha"e a'e soe 'e"elo+i$# cou$tries

able to tur$ their e$'o%e$t i$ $atural resources i$to a$ i$strue$t to achie"e %ealth a$'

'e"elo+e$t( !$ +articular, it %ill be stresse' that the e*+loitatio$ o& $atural resources ha"e le'

'e"elo+i$# cou$tries to collect ca+itals to tur$ &ro reci+ie$ts o& &orei#$ i$"este$ts i$to sub;ects

ca+able o& i$"esti$# abroa'( To i$"esti#ate this as+ect, +articular atte$tio$ %ill be +ai' to the

eer#i$# role o& so"erei#$ %ealth &u$'s >SW?, %hose ori#i$s, +ur+oses a$' i$"este$ts %ill be

brie&l- 'escribe'( The last +art o& the +a+er %ill be 'e"ote' to a$al-se i$ %hich %a- so"erei#$

%ealth &u$'s, at least those &ul&illi$# certai$ re@uiree$t, i#ht e$sure that e$'o%e$t i$ $atural

resources ca$ be use' to +roote sustai$able 'e"elo+e$t be$e&iti$# the +eo+le li"i$# i$ the States

rich i$ such $atural resources( !$ other %or's, it %ill be 'iscusse' %hether SW ca$ re+rese$t a $e%

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a$' +ositi"e a++licatio$ o& the +ri$ci+le o& +era$e$t so"erei#$t- o"er $atural resources a&ter hal& a

ce$tur- &ro its &irst &orulatio$(

". T#e onte$t !n %#!# t#e&r!n!&'e o( &er)*nent so+ere!,nt- o+er n*tur*' resoures %*s

e'*or*ted

U$til the i' t%e$tieth ce$tur-, the +rotectio$ o& &orei#$ 'irect i$"este$ts %as i$ +art co$tai$e' i$

a#reee$ts establishi$# tra'e relatio$s >&or i$sta$ce the bilateral treaties o& rie$'shi+, 5oerce

a$' Na"i#atio$ co$clu'e' b- the U$ite' States si$ce the ei#htee$th ce$tur-? a$' i$ +art it %as a$

issue o& custoar- i$ter$atio$al la%( At that tie the i$ter$atio$al cou$it- %as @uite sall a$'

hoo#e$ous a$' it ha' bee$ able to a#ree a$ arra- o& basic +ri$ci+les +ro"i'i$# a i$iu

sta$'ar' o& treate$t a$' +rotectio$ o& &orei#$ +ro+erties, As these +ri$ci+les %ere rather "a#ue,

their e&&ecti"e$ess %as o&te$ stre$#the$e' b- recourse to 'i+loatic ea$s or e"e$ ilitar-

coercio$, i$ +articular to co+el host States to re&rai$ &ro acts i+airi$# the ri#hts o& &orei#$

i$"estors, or at least to &orce the to +a- +ro+t co+lete a$' a'e@uateC co+e$satio$ i$ case o&

coissio$ o& such acts( !$ this co$te*t, &irs base' i$ i$'ustrialie' cou$tries a$' u$'erta9i$#

i$"este$ts i$ 'e"elo+i$# cou$tries or i$ colo$ies coul' e$;o- "er- &a"ourable co$'itio$s( !$ the

case o& i$"este$ts i$"ol"i$# the e*+loitatio$ o& local $atural resources, a #reat +art o& the +rocee's

be$e&ite' a$a#ers a$' sharehol'ers o& &orei#$ &irs a$' $ot the cou$tr- recei"i$# &orei#$ 'irect

i$"este$ts( As a result, the acti"it- o& &orei#$ co+a$ies %as re#ar'e' as a %a- to i+o"erish host

cou$tries a$' to 9ee+ the i$ +o"ert- a$' sub;ectio$( De"elo+i$# cou$tries #a"e +articular

i+orta$ce to $atural resources because the- 'i' $ot ha"e other co+etiti"e eco$oic sectors >li9e

a$u&actures?< this ea$t that, i$ or'er to +roote eco$oic a$' social 'e"elo+e$t at least i$ the

short ter, the- $ee'e' to rel- alost e$tirel- o$ the +rocee's o& the use o& their $atural resources(

!t %as clear that %ithout the +ossibilit- to obtai$ the lar#est sta9e o& such +rocee's, there %as $o

ho+e to i+ro"e the eco$oic co$'itio$ o& 'e"elo+i$# cou$tries( This &eeli$# becae e"e$ stro$#er

%he$, si$ce the e$' o& the 1=03s, the 'ecolo$iatio$ +rocess brou#ht a$- cou$tries to +olitical

i$'e+e$'e$ce( These $e%l-i$'e+e$'e$t States %ere co$"i$ce' that their i$'e+e$'e$ce %oul' ha"e

bee$ co+lete a$' e&&ecti"e o$l- %he$ it %oul' ha"e attai$e' a$ eco$oic a$' social 'ie$sio$

too, as the ere +olitical >&oral? as+ect o& sel& 'eteri$atio$ %oul' ha"e $ot bee$ su&&icie$t o$ its

o%$( 5o$siste$tl- %ith this a++roach, &orei#$ i$"este$ts %ere re#ar'e' as a &or o& $eo

colo$ialis because the- i$"ol"e' &orei#$ co$trol o"er local ea$s o& +ro'uctio$( As a result,

$e%l- i$'e+e$'e$t States u$'ertoo9 e&&orts to cha$#e i$ter$atio$al la% at that tie a++licable to

&orei#$ i$"este$ts( The- co$teste' the i$ter$atio$al la% #o"er$i$# i$terState eco$oic relatio$ at

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that tie a$' stru##le' to +roote a new international economic order>althou#h this ter %oul'

ha"e bee$ coi$e' o$l- later, i$ 1=/?( U$'er the $e% i$ter$atio$al eco$oic or'er, i$ter$atio$al

la% %oul' ha"e ;usti&ie' a$' e"e$ su++orte' the actio$s ta9e$ b- 'e"elo+i$# cou$tries to #ai$

e&&ecti"e co$trol o"er ea$s o& +ro'uctio$ a$' $atural resources %ithi$ their territor- a$' to &i$all-

achie"e eco$oic i$'e+e$'e$ce( )The best &rae%or9 i$ %hich 'e"elo+i$# cou$tries coul' ha"e

acte' to +roote such a cha$#e o& i$ter$atio$al la% %as the U$ite' Natio$s e$eral Assebl-

>UNA? %here the-, to#ether %ith socialist cou$tries, coul' rel- o$ a %i'e a;orit-( This %oul'

ha"e a'e it +ossible to a'o+t resolutio$s %hich, althou#h $ot le#all- bi$'i$#, coul' ha"e

co$tribute' i$ a rele"a$t %a- to the creatio$ a$' to the +ro#ressi"e 'e"elo+e$t o& i$ter$atio$al

la%( !t is i+orta$t to $ote that, si$ce the be#i$$i$#, 'e"elo+i$# cou$tries ha"e al%a-s trie' to

su++ort the "ie% that the +ri$ci+le o& +era$e$t so"erei#$t- o"er $atural resources %as 'ee+l-

i$tert%i$e' %ith hua$ ri#hts, eco$oic a$' social 'e"elo+e$t, +rotectio$ o& the e$"iro$e$t,

so"erei#$it- a$' i$'e+e$'e$ce o& States, sel&'eteri$atio$ o& +eo+les a$' the ai$te$a$ce o&

i$ter$atio$al +eace(. !$ +articular, the li$9s bet%ee$ hua$ ri#hts a$' the ri#ht o& 6eo+les to

'is+ose a$' be$e&its &ro their $atural resources %ere so ti#ht that the &irst 'ebates %hich %oul'

ha"e brou#ht to the 'eclaratio$ o& the +ri$ci+les o& +era$e$t so"erei#$t- o"er $atural resources

too9 +lace %ithi$ the Hua$ Ri#hts 5oissio$ o& the U$ite' Natio$s(/

/. Intern*t!on*' !nstru)ents de'*r!n, t#e &r!n!&'e o( &er)*nent so+ere!,nt- o+er n*tur*'

resoures

The &irst rele"a$t UNA resolutio$ &or the elaboratio$ o& the +ri$ci+le o& +era$e$t so"erei#$t-

o"er $atural resources %as a'o+te' i$ 1=0) 0( 5o$siste$tl- %ith the abo"e e$tio$e' a++roach, the

resolutio$ stresses the i+orta$ce o& +rooti$# eco$oic 'e"elo+e$t to achie"e u$i"ersal

+eaceC( The$ it e*+lai$s that, to e$ha$ce eco$oic 'e"elo+e$t, it is $ecessar- that +oor cou$tries

be e$title' to use a$' e*+loit i$ a +ro+er %a- their $atural resources( This ea$s that 'e"elo+i$#

)Ke$$eth F( Ga$'e"el'e< A Brie& Histor- o& !$ter$atio$al !$"este$t A#reee$ts< U(5( Da"is Four$al o& !$ter$atio$al

a% I 6olic-, )330< +( 104 ss(( Doi$i@ue 5arreau< 6atric9 Fuillar'< Droit i$ter$atio$al Jco$oi@ue< 1re J'( 6aris:Dallo, )33. < +( /3) ss( Michael 6( To'aro< Eco$oic 'e"elo+e$t i$ the Thir' Worl'< Ne% Yor9 < o$'o$:o$#a$, 1=4=< +( 0=4 ss( ra$cis S$-'er< 6eter Sli$$, e'(< !$ter$atio$al la% o& 'e"elo+e$t: co+arati"e+ers+ecti"es< Abi$#to$< 1=4< +( 1. ss(< 6aolo 6ico$e, ior#io Sacer'oti< Diritto i$ter$aio$ale 'elleco$oia: raccoltasisteatica 'ei +ri$ci+ali atti $orati"i i$ter$aio$ali e' i$ter$i co$ testi i$tro'utti"i e $ote< ra$co A$#eli< 1==1(+( 1./

ss(( Be$e'etto 5o$&orti< Diritto i$ter$aio$ale G!!? )1 Deceber 1=0)(

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cou$tries $ee' to ha"e the ri#ht &reel- to use a$' e*+loit their $atural %ealth a$' resources

%here"er 'eee' 'esirable b- the &or their o%$ +ro#ress a$' eco$oic 'e"elo+e$tC( The

resolutio$ rear9s that this ri#ht is i$here$t i$ their so"erei#$it-C a$' it is co$siste$t %ith the

+ur+oses a$' +ri$ci+les o& the 5harter o& the U$ite' Natio$sC( The resolutio$ co$tai$s the

+rohibitio$ to the other States to act i$ a %a- 'esi#$e' to i+air the e*ercise o& this ri#ht(

!$ a subse@ue$t resolutio$2 the UNA 'eci'e' to create a coissio$ %hose tas9 %oul' ha"e

co$siste' i$ stu'-i$# the curre$t situatio$ o& the 'e"elo+e$t o& the +ri$ci+le o& +era$e$t

so"erei#$t- o"er $atural resources a$' to re+ort o$ this sub;ect to the Eco$oic a$' Social 5ou$cil

i$ the &ollo%i$# sessio$( !$ +articular, the coissio$ ha' to 'eteri$e the $ature o& the ri#ht o&

+era$e$t so"erei#$t- o"er $atural resources< the a$$er i$ %hich that ri#ht shoul' ha"e bee$

e*ercise'< a$' %hat easures shoul' ha"e bee$ ta9e$ accor'i$# to i$ter$atio$al la% to a9e this

ri#ht ore e&&ecti"e(

i$all-, i$ 1=2) the UNA a'o+te' resolutio$ 143., e$title' 6era$e$t So"erei#$t- O"er Natural

Resources, %hich co$stitutes the broa'est, ost e*+licit 'eclaratio$ &ro the U$ite' Natio$s

s+eci&icall- o$ the sub;ect 4( !$ this occasio$, the UNA 'oes $ot liit itsel& to a re+etitio$ o&

+ri$ci+les alrea'- e*+resse' i$ &orer resolutio$s: o$ the co$trar- it clearl- states %hich are their

i+licatio$s i$ ters o& re#ulatio$ o& the acti"it- o& &orei#$ i$"estor a$' %ith res+ect to the ri#ht to

e*+ro+riate a$' $atio$alie the( !$ &act, accor'i$# to resolutio$ 143. the e*+loratio$,

'e"elo+e$t a$' 'is+ositio$ o&C $atural resources as %ell as the i+ort o& the &orei#$ ca+ital

re@uire' &or these +ur+oses, shoul' be i$ co$&orit- %ith the rules a$' co$'itio$s %hich the

+eo+les a$' $atio$s &reel- co$si'er to be $ecessar- or 'esirable %ith re#ar' to the authoriatio$,

restrictio$ or +rohibitio$ o& such acti"itiesC( Moreo"er, %he$ States acce+t &orei#$ i$"estors, the-

ai$tai$ the ri#ht to re#ulate a$' co$trol the, co$siste$tl- %ith 'oestic le#islatio$ i$ &orce a$'

i$ter$atio$al la%( The resolutio$ u$'erli$es that this i+lies the ri#ht to e*+ro+riate a$' $atio$alie

the( Ne"ertheless these +o%ers shall $ot be e*ercise' b- the host State arbitraril- a$' i$ a %a- to

'e+ri"e &orei#$ i$"estors o& a$- ri#ht a$' #uara$tee( The resolutio$, i$ &act, s+eci&ies that

$atio$aliatio$, e*+ro+riatio$ a$' re@uisitio$i$# shall be base' o$ #rou$'s o& +ublic utilit-,

securit- or the $atio$al i$terest %hich are reco#$ie' as o"erri'i$# +urel- i$'i"i'ual or +ri"ate

i$terests, both 'oestic a$' &orei#$(C This ea$s that such acts a- be u$'erta9e$ o$l- %he$ there

is a real, co+elli$# $ecessit- o& the State a$' %ithout 'iscrii$atio$ bet%ee$ &orei#$ a$' 'oestic

i$"estors or bet%ee$ i$"estors coi$# &ro 'i&&ere$t States( Moreo"er, i$ these cases co+e$satio$

2UNA res( 1.1/ >L!!!? 1) Deceber 1=04( UNA res( 143. >LG!!? 1/ Deceber 1=2)(4N'i"a Ko&eleKale< cit( +( 4) ss((

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shall be +ai'( The resolutio$ 'oes $ot re&er to the socalle' Hull &orula=, accor'i$# to %hich

co+e$satio$ shoul' ha"e bee$ +ro+t, a'e@uate a$' e&&ecti"eC O$ the co$trar- it +ro"i'es that

co+e$satio$ shall be a++ro+riateC a$' i$ accor'a$ce %ith the rules i$ &orce i$ the $atio$alii$#

StateC a$' i$ accor'a$ce %ith i$ter$atio$al la%C( With this &orulatio$, the resolutio$ o$ o$e si'e

'eclares that host States shall $ot be &orce' to +a- co+e$satio$ accor'i$# to criteria a++licable i$

other States >i$ +articular the States o& the i$"estors?< o$ the other si'e the- shall reai$ bou$' to

the res+ect o& soe i$iu sta$'ar' o& &air treate$t a$' $o$ 'iscrii$atio$ 'ictate' b-

i$ter$atio$al custoar- la%( Ne"ertheless, the actual co$te$t o& such sta$'ar's is u$clear, i$

+articular as at the le"el o& the i$ter$atio$al cou$it- there is $o a#reee$t about the( i$all-,

resolutio$ 143. states that i$ case o& 'is+utes bet%ee$ &orei#$ i$"estors a$' host State %ith res+ect

to co+e$satio$, tribu$als o& the host State %ill ha"e ;uris'ictio$( Recourse to arbitratio$ or to

i$ter$atio$al a';u'icatio$ is +ossible o$l- i& the host State acce+ts it i$'e+e$'e$tl- a$' &reel-( This

&orulatio$ i+lies a re&usal o& a$- atte+t o& i$'ustrialie' cou$tries to use e*tra le#al ea$s

>'i+loac- but also sa$ctio$s? to &orce 'e"elo+i$# cou$tries to subit 'is+utes %ith &orei#$

i$"estors i$foraother tha$ 'oestic courts o& host States(

The +ri$ci+les 'eclare' i$ resolutio$ 143. %ere re+eate' i$ resolutio$ )104 13( !t 'eclares that

&orei#$ i$"este$ts, i$ +articular as the- ca$ be use&ul to i+ro"e the e*+loitatio$ o& $atural

resources, ca$ be acce+te', but the- shall al%a-s be re#ulate' b- 'oestic la% o& host State( !$ this

%a-, the +rocee's o& the e*+loitatio$ o& $atural resources shall be$e&it host State a$' $ot o$l-

&orei#$ i$"estors( !t is i+orta$t to $ote that i$ its +reable the resolutio$ rei$'s that, as a$-

$atural resources are e*haustible, their +ro+er e*+loitatio$ 'eteri$es the co$'itio$s o& the

eco$oic 'e"elo+e$t o& the 'e"elo+i$# cou$tries both at +rese$t a$' i$ the &utureC( This

statee$t +ro"i'es a &irst li$9 bet%ee$ the +ri$ci+le o& +era$e$t so"erei#$t- o"er $atural

resources a$' the +ri$ci+les o& sustai$able 'e"elo+e$t a$' i$ter#e$eratio$al res+o$sibilit-, %hich

%ill be better 'e&i$e' u$'er the +oi$t o& "ie% o& the +rotectio$ o& the e$"iro$e$t i$ 1=), i$

occasio$ o& the Stoc9hol 'eclaratio$(11 The basic i'ea is that e*+loitatio$ o& $atural resources i$

a$- cases bri$# the to 'e+letio$( As a result, there is the ris9 that &uture #e$eratio$s %ill $ot be

allo%e' to e$;o- the sae le"el o& %ealth as +rese$t #e$eratio$s 'o, at least to the e*te$t that %ealth

'eri"es ai$l- &ro the e*+loitatio$ o& $atural resources( This co$ce+t is "er- i+orta$t a$' it %ill

be a$al-se' i$ 'e+th i$ the &ollo%i$# cha+ters o& the +rese$t +a+er(

=The sta$'ar' o& +ro+t, a'e@uate a$' e&&ecti"e co+e$satio$ &or e*+ro+riatio$ ori#i$all- %as articulate' i$ 1=.4 b-U(S( Secretar- o& State 5or'ell Hull i$ a $ote to the Me*ica$ #o"er$e$t %hich %as $atio$alii$# US 'irecti$"este$ts( This la$#ua#e soo$ becae the 'e&i$iti"e &orulatio$ i$ the "ie% o& the U$ite' States a$' o&i$'ustrialie', ca+itale*+orti$# cou$tries, o& the sta$'ar' o& co+e$satio$ re@uire' b- custoar- i$ter$atio$al la% i$

the e"e$t o& a$ e*+ro+riatio$ o& &orei#$ o%$e' +ro+ert-( The sta$'ar' %as u$'erstoo' to re@uire +a-e$t %ithout 'ela-o& &air ar9et "alue i$ a &reel- co$"ertible curre$c-(13UNA res( )104 >LL!? )0 No"eber 1=22(11io"a$$i 5or'i$i, 6aolo ois, Ser#io Marchisio< cit( +( 13 ss((

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!$ 1=22 t%o other i+orta$t i$ter$atio$al i$strue$t %ere a++ro"e'( The- are the !$ter$atio$al

5o"e$a$t o$ Eco$oic, Social a$' 5ultural Ri#hts1)a$' the !$ter$atio$al 5o"e$a$t o$ 5i"il a$'

6olitical Ri#hts1.( !t is i+orta$t to hi#hli#ht that, 'i&&ere$tl- &ro the abo"e e$tio$e' UNA

resolutio$, the- are le#all- bi$'i$# treaties( Their art 1,) rea' as &ollo%s: All +eo+les a-, &or their

o%$ e$'s, &reel- 'is+ose o& their $atural %ealth a$' resources %ithout +re;u'ice to a$- obli#atio$s

arisi$# out o& i$ter$atio$al eco$oic coo+eratio$, base' u+o$ the +ri$ci+le o& utual be$e&it, a$'

i$ter$atio$al la%( !$ $o case a- a +eo+le be 'e+ri"e' o& its o%$ ea$s o& subsiste$ce(C What is

+ro"i'e' &or i$ this article is $e"ertheless @uite 'i&&ere$t &ro the +ri$ci+le o& +era$e$t

so"erei#$t- o"er $atural resources, %hich, i$ &act, is $ot e$tio$e' 'irectl-( !$ +articular, the

co"e$a$ts +ro"i'e that +eo+le o$l- maya$' $ot shallC 'is+ose o& their $atural resources( This

+ossibilit- shall be e*ercise' %ithout "iolati$# the i$ter$atio$al la% a$' the obli#atio$s 'eri"i$#

&ro it( There is $o re&ere$ce to the ri#ht to e*+ro+riate or $atio$alie< o$ the co$trar-, the &act that

%he$ 'is+osi$# o& their %ealth a$' resources States shall 9ee+ o$ res+ecti$# their obli#atio$s is

li9el- to i+ose, i+licitl-, soe restrictio$s to this ri#ht(

The +ri$ci+le o& +era$e$t so"erei#$t- o"er $atural resources %as 'eclare' i$ a uch ore ra'ical

%a- i$ Resolutio$ .11(1/ !t reiterates that &ull co$trol o"er $atural resources is a$ i$'is+e$sable

elee$t o& the so"erei#$t- o& a State, that the UNA su++orts resolutel- the e&&orts o&

'e"elo+i$# cou$tries P i$ their stru##le to re#ai$ co$trol o"er their $atural resourcesC, a$' that

the ri#ht to $atio$alie &orei#$ i$"este$ts is a$ e*+ressio$ o& the ri#ht o& +era$e$t so"erei#$t-

o"er $atural resources a$', as a result, o& the so"erei#$t- o& a State( Moreo"er, the resolutio$ re&ers

to the issue o& co+e$satio$, i$ a %a- ore &a"ourable to $atio$alii$# cou$tries %ith res+ect to the

&orulatio$ co$tai$e' i$ resolutio$ 143.( !$ &act, i$ resolutio$ .11 co+e$satio$ is $ot re@uire' to

be a++ro+riateC but it is 'eclare' that each State is e$title' to 'eteri$e the aou$t o& +ossible

co+e$satio$ a$' the o'e o& +a-e$tC( There is $o ore a re&ere$ce to sta$'ar's a$' +ri$ci+les

o& i$ter$atio$al la%, %hich, i$ s+ite o& their "a#ue$ess, coul' ha"e 'iscoura#e' a$ e*cessi"e 'e#ree

o& 'iscretio$ >or e"e$ arbitrari$ess? o$ behal& o& the $atio$alii$# cou$tr-( 5o$siste$tl- %ith this

a++roach, 'is+utes %hich i#ht arise bet%ee$ &orei#$ i$"estors a$' host States shoul' be settle' i$

accor'a$ce %ith the $atio$al le#islatio$C o& the $atio$alii$# State( With res+ect to resolutio$ 143.,

a$- e$tio$ o& arbitratio$ or i$ter$atio$al a';u'icatio$ has 'isa++eare'(

i$all-, i$ 1=/, the +ri$ci+le o& +era$e$t so"erei#$t- o"er $atural resources %as i$clu'e' i$ a

broa'er set o& +ri$ci+les a$' ri#hts +ro"i'e' &or i$ three &u$'ae$tal i$strue$ts: the 'eclaratio$

1)!$ter$atio$al 5o"e$a$t o$ Eco$oic, Social a$' 5ultural Ri#hts A'o+te' a$' o+e$e' &or si#$ature, rati&icatio$ a$'

accessio$ b- e$eral Assebl- resolutio$ ))33A >LL!? o& 12 Deceber 1=22(1.!$ter$atio$al 5o"e$a$t o$ 5i"il a$' 6olitical Ri#hts A'o+te' a$' o+e$e' &or si#$ature, rati&icatio$ a$' accessio$ b-e$eral Assebl- resolutio$ ))33A >LL!? o& 12 Deceber 1=22(1/UNA res( .11 >LLG!!!? 1 Deceber 1=.(

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o$ the establishe$t o& a Ne% !$ter$atio$al Eco$oic Or'er >N!EO? 10, the +ro#rae o& actio$ o$

the establishe$t o& a Ne% !$ter$atio$al Eco$oic Or'er12a$' the 5harter o& eco$oic Ri#hts a$'

Duties o& States1

With these i$strue$ts, 'e"elo+i$# cou$tries a'e it clear that the- re#ar'e' the eco$oic or'er

create' a$' su++orte' so &ar b- i$'ustrialie' cou$tries as i$here$tl- co$trar- to their $ee's a$'

'esires( U$til this eco$oic or'er is re+lace' b- a $e% o$e, 'e"elo+i$# cou$tries %oul' ha"e

reai$e' i$ a co$'itio$ o& +o"ert- a$' u$'er'e"elo+e$t as %ell as o& +olitical a$' eco$oic

'e+e$'e$c-( !$ other %or's, thir' %orl' States re;ecte' the i'ea that the- i#ht ha"e achie"e'

'e"elo+e$t acti$# co$siste$tl- %ith the s-ste o& i$ter$atio$al eco$oic relatio$s i$ &orce,

because this s-ste %as re#ar'e' as a tool 'esi#$e' a$' co$trolle' b- i$'ustrialie' cou$tries i$

or'er to ai$tai$ their su+reac- o"er the thir' %orl'( i9e%ise, 'e"elo+i$# cou$tries thou#ht that

i$ter$atio$al eco$oic i$stitutio$s as the Worl' Ba$9 >WB?, the !$ter$atio$al Mo$etar- u$'

>!M? a$' the e$eral A#reee$t o$ Tari&&s a$' Tra'e >ATT? %ere actuall- co$trolle' b- rich

cou$tries, %ith the ai to &orce 'e"elo+i$# cou$tries to act i$ a %a- atchi$# $ot their o%$

i$terests but the i$terests o& i$'ustrialie' States(

E"e$ thou#h soe o& these co$ce+ts ha' alrea'- i$&ore' a$- +re"ious UNA resolutio$s about

the +era$e$t so"erei#$t- o"er $atural resources, $e"ertheless it is o$l- i$ 1=/ that the- %ere

e*+resse' %ith a +articular, re"olutio$ar- &orce(

The N!EO %a$te' to e$sure that each State coul' co$trol all the eco$oic acti"it- %ithi$ its o%$

bor'ers a$', i$ +articular, its $atural resources, %hich %ere re#ar'e' as o$e o& the ai$ source o&

%ealth &or 'e"elo+i$# cou$tries( S+eci&icall-, resolutio$ .)31 states at +ara#ra+h / >e? that o$e o&

the &ou$'i$# +ri$ci+le o& the N!EO shall be the &ull, +era$e$t so"erei#$t- o& e"er- State o"er its

$atural resourcesC %hich shall i+l- the ri#ht to $atio$alie &orei#$ +ro+ert- %he$ $ecessar-(

Moreo"er, it stresses the $ee' to +ro"i'e 'e"elo+i$# cou$tries %ith ore stable i$coes &or their

+riar- coo'it- e*+orts( !$ &act, the hi#h "olatilit- o& coo'it- +rice coul' +ose a se"ere

threat to cou$tries %hose re"e$ues rel- i$ a 'is+ro+ortio$ate %a- o$ the e*+ort o& a &e%

coo'ities( De"elo+i$# cou$tries shoul' ha"e better access to tech$olo#- a$' i$ter$atio$al

&i$a$ce< &orei#$ i$"este$ts shall reai$ u$'er the co$trol o& the host cou$tr- a$' sub;ect to its

la%s a$' re#ulatio$s a$' %oul' hel+ to +roote the 'e"elo+e$t o& eco$oic sectors other tha$ the

e*+loitatio$ o& $atural resources( A$other i+orta$t +le'#i$# o& the N!EO is about e$ha$ci$# the

role o& 'e"elo+i$# cou$tries i$ the #o"er$a$ce o& the i$ter$atio$al eco$o-( Si$ce i$ter$atio$al

or#a$iatio$ as the WB, the !M a$' the ATT %ere re#ar'e' as re+rese$ti$# the i$terests o&

10UNA res .)31 > SG!? 1 Ma- 1=/(12UNA res .)3) > SG!? 1 Ma- 1=/(1UNA res .)41 >LL!L? 1) Deceber 1=/(

4

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i$'ustrialie' States, it %as $ecessar- to +roote the U$ite' Natio$s >a$' i$ +articular its e$eral

Assebl-, %here 'e"elo+i$# cou$tries ha' a broa' a;orit-? as the &oru &or the 'iscussio$ o&

'e"elo+e$t issues a$' &or the e$ha$cee$t o& a $e% i$ter$atio$al la%, ore &a"ourable to the

$ee's a$' 'esires o& thir' %orl' cou$tries(14

The 5harter o& eco$oic Ri#hts a$' Duties o& States re+eats a$- o& the abo"e e$tio$e'

+ri$ci+les i$ a sole$ a$' s-steatic %a-( To the e*te$t o& the +rese$t +a+er ! %ill &ocus o$l- o$ its

art( ), %hich 'eals %ith +era$e$t so"erei#$t- o"er $atural resources a$' its i+licatio$s o$

i$ter$atio$al eco$oic la%( i"e$ the i+orta$ce o& this article, it is use&ul to @uote it e$tirel-(

1( E"er- State has a$' shall &reel- e*ercise &ull +era$e$t so"erei#$t-, i$clu'i$# +ossessio$, use

a$' 'is+osal, o"er all its %ealth, $atural resources a$' eco$oic acti"ities(

)( Each State has the ri#ht:

>a? To re#ulate a$' e*ercise authorit- o"er &orei#$ i$"este$t %ithi$ its $atio$al ;uris'ictio$ i$

accor'a$ce %ith its la%s a$' re#ulatio$s a$' i$ co$&orit- %ith its $atio$al ob;ecti"es a$'

+riorities( No State shall be co+elle' to #ra$t +re&ere$tial treate$t to &orei#$ i$"este$tb? To re#ulate a$' su+er"ise the acti"ities o& tra$s$atio$al cor+oratio$s %ithi$ its $atio$al

;uris'ictio$ a$' ta9e easures to e$sure that such acti"ities co+l- %ith its la%s, rules a$'

re#ulatio$s a$' co$&or %ith its eco$oic a$' social +olicies( Tra$s$atio$al cor+oratio$s shall $ot

i$ter"e$e i$ the i$ter$al a&&airs o& a host State( E"er- State shoul', %ith &ull re#ar' &or its so"erei#$

ri#hts, coo+erate %ith other States i$ the e*ercise o& the ri#ht set &orth i$ this sub+ara#ra+hc? To $atio$alie, e*+ro+riate or tra$s&er o%$ershi+ o& &orei#$ +ro+ert- i$ %hich case a++ro+riate

co+e$satio$ shoul' be +ai' b- the State a'o+ti$# such easures, ta9i$# i$to accou$t its rele"a$t

la%s a$' re#ulatio$s a$' all circusta$ces that the State co$si'ers +erti$e$t( !$ a$- case %here the

@uestio$ o& co+e$satio$ #i"es rise to a co$tro"ers-, it shall be settle' u$'er the 'oestic la% o&

the $atio$alii$# State a$' b- its tribu$als, u$less it is &reel- a$' utuall- a#ree' b- all States

co$cer$e' that other +eace&ul ea$s be sou#ht o$ the basis o& the so"erei#$ e@ualit- o& States PC

The a++roach a'o+te' is "er- 'i&&ere$t &ro resolutio$ 143. a$' it is rather co$siste$t %ith ore

rece$t resolutio$s, as res( .11 a$' res( .)31( While resolutio$ 143. %as a bala$ce' te*t %hich

achie"e' a satis&actor- co+roise bet%ee$ the res+ect o& i$ter$atio$al a$' 'oestic la%, the

+rotectio$ o& the ri#hts o& &orei#$ i$"este$ts a$' the ri#hts a$' i$terests o& host States, o$ the

co$trar- the 5harter o& eco$oic Ri#hts a$' Duties o& States &ollo%s a$ a++roach "alui$# the

i$terests a$' ri#hts o& $atio$alii$# cou$tries uch ore tha$ those o& &orei#$ i$"estors a$' o& their

States o& ori#i$( What is +articularl- i+orta$t is that, accor'i$# to the 5harter, the ri#ht to

14Da$iel Bra'lo%< De"elo+e$t Decisio$Ma9i$# a$' the 5o$te$t o& !$ter$atio$al De"elo+e$t a%< Bosto$ 5olle#e!$ter$atio$al a$' 5o+arati"e a% Re"ie%< )33/ +( )3. ss(< Bur$s H( Westo$< the 5harter o& Eco$oic Ri#hts a$'Duties o& States a$' the 'e+ri"atio$ o& &orei#$o%$e' %ealth< Aerica$ Four$al o& !$ter$atio$al a%< 1=41< +( /. ss((

=

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$atio$alie or e*+ro+riate ca$ be e*ercise' alost %ith $o liitatio$s( The +ublic +ur+ose or the

+ublic utilit- o& the e*+ro+riatio$ or $atio$aliatio$ is $o ore re@uire'( A State is &ree to 'eteri$e

%he$ it is i$ its i$terests to u$'erta9e such acts( !t is $ot e*+licitl- re@uire' to res+ect the +ri$ci+le

o& $o$'iscrii$atio$( There is $o re&ere$ce to i$ter$atio$al la% a$' it is stresse' that tra$s&er o&

alie$ +ro+ert-, as %ell as a$- &or o& re#ulatio$ or co$trol o& &orei#$ acti"ities shall occur

e*clusi"el- co$siste$tl- %ith the 'oestic la% o& the host State( i9e%ise, %ith res+ect to the issue

o& co+e$satio$, it is state' that itshouldo$l- be a++ro+riate, but o$l- accor'i$# to the sta$'ar's

a$' +ri$ci+les o& the $atio$alii$# State( !t is to $ote that, %ith res+ect to the $ee' &or

a++ro+riate$ess o& co+e$satio$, the 5harter, u$li9e resolutio$ 143., use the +recator-shoulda$'

$ot the a$'ator-shall( This %oul' lea"e to $atio$alii$# State &urther 'iscretio$ar- +o%er %he$

it 'eci'es %hether to +a- a$ a++ro+riate or rather a s-bolicC co+e$satio$( A$other rele"a$t

&eature is the e*clusio$ o& a$- re&ere$ce to i$ter$atio$al la%: this choice i#ht allo% e*+ro+riati$#

cou$tries to 'isre#ar' e"e$ the i$iu sta$'ar's o& treate$ts %hich are +ro"i'e' &or i$

i$ter$atio$al >custoar-? la% co$cer$i$# alie$s a$' alie$ +ro+erties( O$ the other si'e, absolute

arbitrari$ess o$ behal& o& the $atio$alii$# State shoul' be +re"e$te' b- the &act that the 5harter o&

Eco$oic Ri#hts a$' Duties o& States at cha+ter o$e +ar( >;? 'eclares that o$e o& its &u$'ae$tal

+ri$ci+le shall be the &ul&ile$t i$ #oo' &aith o& i$ter$atio$al obli#atio$C( This +ri$ci+le, as it shall

a++l- to all the +ro"isio$s o& the 5harter, %oul' +re"e$t States at least &ro coitti$# #ra"e

"iolatio$s o& soe basic i$ter$atio$al rules co$cer$i$# the treate$t o& alie$s a$' o& their +ro+erties

>&or i$sta$ce those &orbi''i$# "iole$t, 'iscrii$ator- or arbitrar- easures?( 1=

The +ri$ci+le o& +era$e$t so"erei#$t- o"er $atural resources %as also re+eate' i$ occasio$ o& the

a'o+tio$ o& resolutio$ /1Q1)4, +ro"i'i$# a 'eclaratio$ o$ the ri#ht to 'e"elo+e$tC()3 The

resolutio$ 'eclares that the ri#ht to 'e"elo+e$t is a$ i$alie$able hua$ ri#htC a$' it co$sists

+recisel- i$ the ri#ht &or a$- +erso$ a$' a$- +eo+le to +artici+ate i$, co$tribute to, a$' e$;o-

eco$oic social, cultural a$' +olitical 'e"elo+e$tC( Accor'i$# to this +ers+ecti"e, the ri#ht to

'e"elo+e$t shall be achie"e' also trou#h the res+ect a$' the e$&orcee$t o& the ri#ht o&

+era$e$t so"erei#$t- o"er $atural resources )1

0. T#e !)&*t on !ntern*t!on*' '*% o( t#e de'*r*t!on o( t#e &r!n!&'e o( &er)*nent

so+ere!,nt- o+er n*tur*' resoures

1=Mila$ Bula;ic< +ri$ci+les o& i$ter$atio$al 'e"elo+e$t la%< ei'e$< Marti$us Ni;ho&& 6ublishers< 1=42< +( 134 ss(Bur$s H( Westo$< 1=41< cit( +( //3 ss(< Doi$i@ue 5arreau< 6atric9 Fuillar'< cit( +( /3/ ss(< A$to$ietta 'i Biase< la 5arta'ei Diritti e Do"eri Eco$oici 'e#li Stati< i$ A$'rea iar'i$a< Diritto 'el coercio i$ter$aio$ale: testi 'i base e $otei$tro'utti"e< Mila$o< iu&&r, 1==2 + ( 1/ ss( 6aolo 6ico$e, ior#io Sacer'oti< cit(

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Duri$# the 1=23s a$' 1=3s, a$- 'e"elo+i$# cou$tries starte' to +ut i$ +ractice the +ri$ci+les

'eclare' i$ the UNA resolutio$s %hich %ere sur"e-e' i$ the +re"ious cha+ter( Natio$aliatio$s

a$' e*+ro+riatio$s too9 +lace i$ a$- A&rica$, ati$ Aerica$ a$' Asia$ 'e"elo+i$# cou$tries( !$

soe cases the threat o& $atio$aliatio$ %ithout a'e@uate co+e$satio$ %as su&&icie$t to &orce

&orei#$ i$"estors to acce+t to re$e#otiate the co$cessio$ a#reee$ts a$' the co$tracts &or the

e*+loitatio$ o& local $atural resources the- ha' &orerl- si#$e' %ith host States( The $e% ters o&

co$tracts %ere ore &a"ourable to host States as the- $o% retai$e' &ull title a$' o%$ershi+ o"er

their $atural resources, the co$cessio$ &or the e*+loitatio$ o& their resources %as #ra$te' &or a

shorter +erio' o& tie a$' it co"ere' saller territorial areas( The re$e#otiate' a#reee$ts $o%

+ro"i'e' s+eci&ic o$etar- coite$ts &or e*+loratio$ a$' 'e"elo+e$t 'uri$# earl- o+eratio$s

%ith all costs carrie' b- the &orei#$ i$"estor( Moreo"er actual e*tractio$ a$' e*+loitatio$ o& local

$atural resources %oul' ha"e bee$ u$'erta9e$ ;oi$tl- b- the &orei#$ i$"estors a$' the host State,

%hich %oul' ha"e create' a Stateo%$e' co+a$- to this +ur+ose( This %oul' ha"e assure' the

host State retai$i$# &ull co$trol a$' co$sta$t o$itori$# o"er the acti"ities o& &orei#$ e$ter+rises

a$', as a result, a #reatest sta9e o& the +rocee's o& the e*+loitatio$ o& $atural resources( !$ a$- case,

the re$e#otiate' a#reee$ts +ro"i'e' i$"estors %oul' ha"e +ai' to host States hi#her bo$uses a$'

ro-alties &or the e*+loitatio$ o& $atural resources())

Such e*+ro+riatio$s, $atio$aliatio$s a$' &orce' re$e#otiatio$ o& co$cessio$ a#reee$ts #a"e rise

to +rotestatio$s &ro ulti$atio$al e$ter+rises carr-i$# out i$"este$ts i$ 'e"elo+i$# cou$tries a$'

&ro i$'ustrialie' cou$tries as %ell( O$ the other si'e, 'e"elo+i$# cou$tries claie' that the- %ere

acti$# co$siste$tl- %ith the +ri$ci+le o& +era$e$t so"erei#$t- o"er $atural resources a$', as a

result, co$siste$tl- %ith i$ter$atio$al la%( or this reaso$ it is $ecessar- to a$al-se %hether the

+ri$ci+le o& +era$e$t so"erei#$t- o"er $atural resources, i$ +articular i$ the &orulatio$ it %as

#i"e$ i$ the 5harter o& eco$oic ri#hts a$' 'uties o& States, coul' actuall- be re#ar'e' as a rule o&

i$ter$atio$al la%(

irst o& all it is $ecessar- to $ote that such a +ri$ci+le is $ot co$tai$e' i$ u$i"ersal co$"e$tio$s).,

but it is +roote' throu#h the a'o+tio$ o& UNA resolutio$s, %hich are $ot le#all- bi$'i$#

))Ke"i$ T( Facobs, Matthe% ( 6aulso$< The 5o$"er#e$ce o& Re$e%e' Natio$aliatio$, Risi$# 5oo'ities, a$'Aerica$iatio$ i$ !$ter$atio$al Arbitratio$ a$' the Nee' &or More Ri#orous e#al a$' 6roce'ural De&e$ses< Te*as!$ter$atio$al a% Four$al< )334< +( .1 ss(< Ke$$eth F( Ga$'e"el'e< cit( +( 12 ss(< Thoas W( Wael'e, eor#e N'idiuturnitas? a$' %he$ States belie"e that acti$# co$siste$tl- %ith this +ractice

corres+o$'s to a$ i$ter$atio$al obli#atio$ >opinio juris sive necessitatis?(Diuturnitasa- co$sist i$

"erbal acts, &or i$sta$ce i$ +ublic statee$ts or i$ the +artici+atio$ i$ the a'o+tio$ o& UNA

resolutio$s( !t ca$ also co$sist i$ +h-sicalC acti"ities o& States, &or i$sta$ce e*+ro+riatio$s a$'

$atio$aliatio$s, or i$ the reactio$s o& other States to such +ractices( As e*+lai$e' i$ the +re"ious

cha+ter, the co$te$ts o& UNA resolutio$s co$cer$i$# the +era$e$t so"erei#$t- o"er $atural

resources are $ot all e*actl- the sae, so o$e coul' +ut i$ 'oubt that the- i#ht #i"e rise to a

u$i&or a$' co$sta$t +ractice( Althou#h there is $ot a u$i"ersall- a#ree' sta$'ar' o& u$i&orit- a

+ractice ust ha"e to #i"e rise to a custoar- i$ter$atio$al rule, it ust be $ote' that si$ce the

)/Be$e'etto 5o$&orti< cit(< )333< +( )4. ss(()0Bur$s H( Westo$< cit(< +( /01 ss(< A$to$ietta 'i Biase< cit( +( 1/4 ss((

1)

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a'o+tio$ o& resolutio$ 2)2 i$ 1=0) the co$te$t o& the UNA resolutio$s about the i+licatio$s o&

the +ri$ci+le o& +era$e$t so"erei#$t- o"er $atural resources i$ relatio$ to the issue o&

$atio$aliatio$ a$' co+e$satio$ o& &orei#$ i$"estors has +artiall- cha$#e'( !$ &act, %hile the &irst

resolutio$s +ro"i'e' a$ hi#her 'e#ree o& +rotectio$ &or &orei#$ i$"estors, the 5harter o& eco$oic

ri#hts a$' 'uties o& States +ai' a 'is+ro+ortio$ate atte$tio$ to the i$terests o& host States, $e#lecti$#

the ri#hts o& the i$"estors a$' o& their cou$tries o& ori#i$( or this reaso$, the e*iste$ce o& the &irst

elee$t o& a custoar- rule >the duturnitas? is i$ 'oubt( This "ie% is su++orte' b- the &act that,

althou#h there %as a broa' +ractice o& 'e"elo+i$# States i$ e*+ro+riator- acti"ities, o$ the other

si'e there is also a rather co$siste$t +ractice o& 'e"elo+e' cou$tries i$ o++osi$# the(

The e*iste$ce o& the opinio juris sive necessitatis is e"e$ ore u$certai$( !$ &act, i$ or'er to asses

the e*iste$ce o& a rule o& custoar- i$ter$atio$al la%, it is $ecessar- that all the ebers o& the

i$ter$atio$al cou$it- or, at least, a rele"a$t +art o& the %ith res+ect to the rule i$ @uestio$,

belie"e that a certai$ +ractice is $ecessar- a$' that it corres+o$'s to %hat +rescribe' b-

i$ter$atio$al la%( !t is i$'is+e$sable to $ote that, %hile +re"ious UNA resolutio$s obtai$e' a

#e$eral su++ort o& the i$ter$atio$al cou$it-, the 5harter o& eco$oic ri#hts a$' 'uties o& States

%as a++ro"e' %ith si* "otes a#ai$st a$' te$ abste$tio$s( !$ +articular art( )() >c?, %hich %as

a'o+te' b- se+arate "ote, %as a++ro"e' %ith si*tee$ "otes a#ai$st a$' si* abste$tio$( This ea$s

that there %as $o u$i"ersal co$se$t about it( What is e"e$ ore i+orta$t is that cou$tries "oti$#

a#ai$st it or abstai$i$# %ere the bi##est i$'ustrialie', ca+itale*+orti$# cou$tries( !t is clear that a

rele"a$t +art o& the i$ter$atio$al cou$it- o++ose' the +ri$ci+le o& +era$e$t so"erei#$t- o"er

$atural resources as it %as &orulate' i$ the 5harter o& Eco$oic ri#hts a$' 'uties o& States(

Moreo"er, %he$ 'e"elo+i$# cou$tries starte' to +ut i$ +ractice this +ri$ci+les a$' u$'ertoo9

e*+ro+riatio$s a$' $atio$aliatio$s %ithout a +ro+er co+e$satio$ accor'i$# to the sta$'ar's o&

i$'ustrialie' States, the i$ter$atio$al cou$it- 'i' $ot a#ree o$ the co$siste$c- o& this co$'uct

%ith a rule o& i$ter$atio$al custoar- la%, as ca+ital e*+orti$# cou$tries co$ti$ue' to 'e&i$e such a

co$'uct as a breach o& i$ter$atio$al la% o$ the +rotectio$ o& alie$s a$' alie$ +ro+erties( This is

su&&icie$t to 'e$- the e*iste$ce o& a$ opinio juris sive necessitates co$cer$i$# the +ri$ci+le o&

+era$e$t so"erei#$t- o"er $atural resources as e*+resse' i$ the i$strue$ts a'o+te' b- the UNA

i$ 1=/(

To co$clu'e, the creatio$ o& a rule o& custoar- i$ter$atio$al la% re+ro'uci$# e*actl- the co$te$t o&

such UNA resolutio$s 'i' $ot occur( Ne"ertheless, this 'oes $ot ea$ that the abo"e e$tio$e'

resolutio$s ha"e +ro'uce' $o e&&ect( !$ &act, their a'o+tio$ +ro"e' use&ul to sho% that there %as $o

ore a#reee$t i$ the i$ter$atio$al cou$it- o$ the "ali'it- o& the ol'C i$ter$atio$al custoar-

la% %hich &orce' States to e$sure a hi#h sta$'ar' o& +rotectio$ to &orei#$ i$"este$ts a$' %hich

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'i' $ot ta9e i$to accou$t i$ a$ a'e@uate %a- o& the +ri$ci+le o& so"erei#$t- o& +eo+les or o& States

o"er their $atural resources( !$ other %or's, 'e"elo+i$# cou$tries ha"e $ot bee$ able to create a $e%

i$ter$atio$al custoar- la% a++licable to %orl' eco$oic relatio$s, but the- ha"e bee$ able to

'isiss the ol' o$e, %hich %as re#ar'e' as 'is&a"ouri$# the( )2The UNA resolutio$s sho%e' the

e*iste$ce o& a $e#ati"e opinio jurisabout the ol' eco$oic or'er a$' i& their @uali&icatio$ as lex

lata or lex ferenda is 'oubt&ul, it is clear that the- ca$ be re#ar'e' as lex delenda() !$ such

+articular co$te*t, soe authors ha' su##este' that a 'ual $or s-steC %as i$ &orce at that tie(

There %as a$ i$ter$atio$al custoar- la% a++licable to i$"este$ts bet%ee$ 'e"elo+e' cou$tries

a$', at the sae tie, there %as a$other i$ter$atio$al custoar- la% %hich a++lie' to ca+ital &lo%s

bet%ee$ thir' %orl' cou$tries: $e"ertheless there %ere $o share' rules o& custoar- i$ter$atio$al

la% %hich i#ht ha"e a++lie' to i$"este$ts bet%ee$ a 'e"elo+e' cou$tr- o$ o$e si'e a$' a

'e"elo+i$# cou$tr- o$ the other()4As a result, the ol' eco$oic or'er %as re+lace' $ot b- a $e%

eco$oic or'er, but b- a 'isor'er, i$ %hich $o i$ter$atio$al custoar- la% a++licable to &orei#$

i$"este$ts i$ all States actuall- e*iste'( )=

1. T#e unert*!nt- *out t#e ontent o( !ntern*t!on*' '*% *out (ore!,n !n+est)ents. T#e ro'e

o( B!'*ter*' !n+est)ent Tre*t!es

!$ the situatio$ 'escribe' i$ the e$' o& the +re"ious cha+ter, there %as $o ore certai$t- about the

co$te$t o& i$ter$atio$al custoar- la% a++licable to &orei#$ i$"este$ts( Moreo"er, ca+ital

e*+orti$# cou$tries 'esiri$# to e$sure +rotectio$ to their &irs i$"esti$# o"erseas %ere +re"e$te'

&ro usi$# 'i+loatic +ressures or &ro threate$i$# to use ilitar- &orce a#ai$st States %hich

e$acte' easures i+airi$# the ri#hts o& &orei#$ i$"estors, !$ &act, a&ter the e$' o& the seco$' Worl'

War, the ba$ o& the u$ilateral use o& ilitar- &orce to sol"e i$terState 'is+utes >%ith the e*ce+tio$

o& the case o& sel&'e&e$ce? %as establishe' as a +ri$ci+le o&jus cogens(

!& i$'ustrialie' cou$tries %a$te' to a9e their &irs e$;o- a &air a$' +re'ictable le#al &rae%or9

&or their i$"este$ts o"erseas, the- ca$ $o ore rel- o$ &a"ourable $ors o& i$ter$atio$al

custoar- la%, but the- %ere co+elle' to co$clu'e bilateral treaties %ith cou$tries %here their

)2Oscar Schachter< co+e$satio$ &or e*+ro+riatio$< Aerica$ Four$al o& !$ter$atio$al a%< 1=4/< +( 1)1 ss(< 6aolo6ico$e, ior#io Sacer'oti< cit( +(1./ ss(< cit( Ke$$eth F( Ga$'e"el'e< cit( +( 124 ss( Mila$ Bula;ic< cit( +( 22 ss(< +( 11

ss(< ra$cis S$-'er< 6eter Sli$$, e'< cit(< +(1. ss(< Faes 5( N( 6aul< the U$ite' Natio$s ail-: challe$#es o& la% a$''e"elo+e$t: the U$ite' Natio$s a$' the creatio$ o& a$ i$ter$atio$al la% o& 'e"elo+e$t< Har"ar' !$ter$atio$al a%Four$al< 1==0< +( .)0 ss(< 5oittee o$ &oratio$ o& custoar- >#e$eral? i$ter$atio$al la%< i$al re+ort o& thecoittee statee$t o& +ri$ci+les a++licable to the &oratio$ o& #e$eral custoar- i$ter$atio$al la%< i$ter$atio$al la%

associatio$< o$'o$ 5o$&ere$ce< )333< +( 1 ss(()ra$cis S$-'er< 6eter Sli$$, e'(< cit(< +( 1)2 ss(()4Mila$ Bula;ic< cit(< +( 00 ss(()=Michael 6( To'aro< +( 23. ss((

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co+a$ies %ere i$"esti$#( These a#reee$ts becae 9$o%$ as B!Ts >Bilateral !$"este$t

Treaties?( The &irst o$e ha' bee$ si#$e' bet%ee$ era$- a$' 6a9ista$ i$ 1=0= a$' other &e% B!Ts,

si#$e' b- Euro+ea$ cou$tries o$ o$e si'e a$' a 'e"elo+i$# cou$tr- o$ the other, 'ate' bac9 to the

be#i$$i$# o& the 1=23s( Ne"ertheless, the $uber o& B!Ts i$crease' i$ the 1=23s a$' 1=3s, as lo$#

as the ol' eco$oic or'er %as co$teste' b- 'e"elo+i$# cou$tries a$' i$'ustrialie' cou$tries coul'

$o ore rel- o$ coo$l- a#ree' sta$'ar's o& +rotectio$ &or &orei#$ i$"estors stei$# &ro

i$ter$atio$al custoar- la%( B!Ts %ere rear9abl- u$i&or a$' co$tai$e' se"eral 'isti$cti"e

&eatures( The- 'ealt e*clusi"el- %ith i$"este$ts, as tra'e issues %ere #o"er$e' %ithi$ the

ultilateral &rae%or9 o& the ATT >a$' later o& the WTO?( B!Ts %ere $e#otiate' +ri$ci+all-

bet%ee$ a 'e"elo+e' a$' a 'e"elo+i$# cou$tr-, as the- %ere basicall- 'e"ise' to e$sure +rotectio$

to the i$"este$t o& the 'e"elo+e' cou$tr- i$ the territor- o& the 'e"elo+i$# cou$tr-( T-+icall-, the

a#reee$t %as 'ra&te' b- the 'e"elo+e' cou$tr- a$' o&&ere' to the 'e"elo+i$# cou$tr- &or

si#$ature, %ith the &i$al a#reee$t re&lecti$# o$l- i$or cha$#es &ro the ori#i$al 'ra&t( B!Ts

+ro"i'e' that host cou$tr- %oul' ha"e #ra$te' &air a$' e@uitable treate$t, $atio$al treate$t

a$' ost &a"oure' $atio$ treate$t to co"ere' i$"este$ts( Natio$aliatio$s or e*+ro+riatio$s %ere

+ossible o$l- u$'er certai$ co$'itio$s a$' i$ a$- case +ro+t, a'e@uate a$' e&&ecti"e

co+e$satio$C %oul' ha"e bee$ +ai'( The- +ro"i'e' that i$ case o& 'is+utes, recourse to

i$ter$atio$al arbitratio$, i$ %hich the host State a$' the i$"estor %oul' ha"e bee$ +arties, shoul'

ha"e bee$ +ossible(

About /33 B!Ts ha' bee$ co$clu'e' i$ the thirt- -ears &ro 1=0= to 1=4=, but the $uber o& B!Ts

s+ectacularl- i$crease' i$ the 1==3s( This tre$' co$ti$ue' &or ore tha$ a 'eca'e a$' $o% there are

about )033 B!Ts i$ &orce( The success o& B!Ts ca$ be e*+lai$e' i& %e ta9e i$to co$si'eratio$ the

+olitical a$' eco$oic cha$#es %hich occurre' si$ce the e$' o& the 1=43s( The &ailure o& the

a;orit- o& eco$oic +olicies u$'erta9e$ i$ 'e"elo+i$# cou$tries a$' the colla+se o& the So"iet

bloc 'iscre'ite' the +ri$ci+al alter$ati"es to ar9et ca+italis as a$ eco$oic +olic-( O$ the other

si'e, it eer#e' that those Asia$ eco$oies %hich ha' a'o+te' i$ the 1=3s a$' 1=43s a ore

ca+italist eco$oic o'el >o+e$ to tra'e a$' %ith hi#h rates o& +ri"ate i$"este$t? ha' re+orte'

hi#her rates o& #ro%th co+are' to other 'e"elo+i$# cou$tries that ha' restricte' or hi$'ere'

+ri"ate i$"este$ts >&orei#$ a$' 'oestic both? a$' +ursue' i+ort substitutio$ +olicies(

De"elo+i$# cou$tries a$' &orer socialist States reco#$ie' that the- i#ht ha"e be$e&ite' &ro the

a++licatio$ o& soe eco$oic +ri$ci+les a$' +ractises su++orte' a$' i+lee$te' b- %ester$

cou$tries( As a result the- starte' to loo9 at &orei#$ i$"este$ts ore as a$ o++ortu$it- rather tha$

as a threat( The- becae rea'- to il'e$ their i$tra$si#e$ce o"er soe +ri$ci+les the- ha"e

+roclaie' so &ar, &or i$sta$ce that o& +era$e$t so"erei#$t- o"er $atural resources, i$ or'er to

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create &a"ourable co$'itio$s to attract &orei#$ ca+itals( As the 'ebt crisis o& the 1=43s ha' re'uce'

the a"ailabilit- o& +ri"ate le$'i$# a$' as there %as a re'uctio$ o& &u$'s &ro other States or &ro

i$ter$atio$al or#a$iatio$s &or the assista$ce to 'e"elo+e$t, the best %a- 'e"elo+i$# cou$tries

coul' obtai$ ca+itals %as to acce+t &orei#$ &irs bu-i$# e@uit- i$ their local &irs e"e$ %he$ this

i$"ol"e' the ac@uisitio$ o& a co$trolli$# sta9e >thus #i"i$# rise to a &orei#$ 'irect i$"este$t?(

Moreo"er, 'e"elo+i$# cou$tries %ere rea'- to acce+t &orei#$ &irs to e*+loit local $atural resources

a$' to this e*te$t the- acce+te' to coit thesel"es, also at the i$ter$atio$al le"el, to create a

better le#al &rae%or9 &or o+eratio$s carrie' out b- &orei#$ co+a$ies( As there %as $o a#reee$t

about the co$te$t o& custoar- i$ter$atio$al la% about the +rotectio$ o& &orei#$ i$"este$ts, States

loo9e' &or ore le#al certai$ties at a bilateral le"el, si#$i$# B!Ts( !$ co$clusio$, the success o& B!Ts

i$ the 1==3s 'e+e$'e' both o$ the $ee' o& ca+ital e*+orti$# cou$tries to e$sure +rotectio$ to their

&irs i$"esti$# o"erseas a$' o$ the $ee' o& ca+ital i+orti$# cou$tries to attract &orei#$

i$"este$t( .3

O$e coul' @uestio$ the co$siste$c- o& the co$te$t o& B!Ts, i$ +articular i$ relatio$ to

e*+ro+riatio$s, $atio$aliatio$s a$' co+e$satio$s, %ith the +ri$ci+le o& +era$e$t so"erei#$t-

o"er $atural resources( B!Ts,per se'o $ot i+air the +ri$ci+le that a State i#ht retai$ co$trol o"er

its $atural resources a$' that the +rocee's o& the e*+loitatio$ o& these resources shoul' be$e&it

ai$l- the State i$ %hich the- are locate'( Ne"ertheless B!Ts co$tai$ +ro"isio$s co$trar- to the

i'ea, u$'erl-i$# inter aliathe 5harter o& eco$oic ri#hts a$' 'uties o& States, accor'i$# to %hich

the +ri$ci+le o& +era$e$t so"erei#$t- o"er $atural resources shall be e*ercise' irres+ecti"e o& a$-

other obli#atio$, &or i$sta$ce those co$cer$i$# the +rotectio$ o& alie$s a$' o& their +ro+ert-(

2. T#e &ro'e) o( deter)!n!n, %#o s#ou'd e t#e ene(!!*r- o( t#e &r!n!&'e o( &er)*nent

so+ere!,nt- o+er n*tur*' resoures

So &ar the &ocus has bee$ o$ the relatio$ bet%ee$ the +ri$ci+le o& +era$e$t so"erei#$t- o"er

$atural resources a$' &orei#$ i$"este$ts( A$other as+ect, %hich relates to the i'e$ti&icatio$ o& the

actual be$e&iciaries o& this +ri$ci+le, has bee$ #i"e$ less atte$tio$( This cha+ter %ill atte+t to

re'ress this #a+(

.3Ke$$eth F( Ga$'e"el'e< cit( +( 124 ss< ior#io Sacer'oti< Bilateral Treaties a$' Multilateral !$strue$ts o$ !$"este$t6rotectio$, i$ Recueil 'es 5ours, Gol( )2= >1==?< +( )21 ss(< Oscar Schachter< cit(< +( 1) ss(< a%le$ Kelle-%hich ea$s inter aliathe ri#ht to li"e i$ a sa&e

a$' u$+ollute' e$"iro$e$t?( Accor'i$# to this +ers+ecti"e, the ri#ht to +era$e$t so"erei#$t- o"er

$atural resources %oul' be a thir' #e$eratio$ ri#ht a$' the +eo+les shoul' be e$title' to it( The i'ea

o& the e*iste$ce o& thir' #e$eratio$C ri#hts, i$ +articular %ith res+ect to the ri#ht to 'e"elo+e$t,

%as +roote' b- 'e"elo+i$# cou$tries es+eciall- i$ A&rica( !t %as co$siste$t %ith the "ie% that to

achie"e &ull +rotectio$ o& hua$ ri#hts it %as $ecessar- to 'isiss the %ester$ a++roach accor'i$#

to %hich the ri#hts o& the i$'i"i'uals %ere co$cei"e' as a tool to +rotect the e$titlee$ts o& si$#le

citie$s a#ai$st the i$terests o& the cou$it- to %hich the- belo$#e'( O$ the co$trar-, the &ull

+rootio$ o& ci"il +olitical, eco$oic a$' social hua$ ri#hts %oul' ha"e bee$ a'e +ossible o$l-

as lo$# as it %as co$siste$t %ith the 'e"elo+e$t a$' the +rootio$ o& the collecti"e ri#hts o& the

cou$it- to %hich i$'i"i'uals belo$#e'(./Declari$# that the +ri$ci+le o& +era$e$t so"erei#$t-

o"er $atural resources +ertai$s to the cate#or- o& thir' #e$eratio$ ri#hts ca$ +ro"i'e &urther

;usti&icatio$s &or e*+ro+riatio$s( !$ &act, o$ce the +riac- o& the ri#hts o& the collecti"it- is

.1UNA res( 1.1/ >L!!!? 1) Deceber 1=04< +reable< UNA res( 1)3 >LG!? 1= Deceber 1=21< +ar 1< UNAres( 143. >LG!!? 1/ Deceber 1=2), +ar( 1(.)UNA res .)31 > SG!? 1 Ma- 1=/, +ar / e?(..UNA res .)41 >LL!L? 1) Deceber 1=/ art( )(1(./Nico Schri;"er, rie'l Weiss, e'(< !$ter$atio$al la% a$' sustai$able 'e"elo+e$t +ri$ci+les a$' +ractice< ei'e$&orei#$? i$"estors, but it also creates obli#atio$s u$'er

i$ter$atio$al la% &or the sae States i$ %hose territories $atural resources are locate'( Accor'i$# to

this +ers+ecti"e, States shoul' be $o ore co+letel- &ree to use $atural resources i$ their

territories, but the- %oul' ha"e the 'ut-, u$'er i$ter$atio$al la%, to use such resources %ith the ai

to achie"e the 'e"elo+e$t a$' the %ellbei$# o& their o%$ +eo+les(

!& %e stu'- the actual use a$- 'e"elo+i$# States ha"e a'e o& their $atural resources e"e$ o$ce

the- ha"e ta9e$ such resources &ro the co$trol o& &orei#$ co+a$ies, it eer#es that i$ a$- cases

the- ha"e $ot acte' co$siste$tl- %ith this obli#atio$( !$ these cases, abu$'a$ce o& $atural resources

ha"e $ot brou#ht %ealth a$' eco$oic #ro%th to +eo+les,.0but rather to the +he$oe$o$ %hich has

coe to be 'e$ote' to the eco$oists as resource curse(C The reai$i$# +art o& this cha+ter %ill be

'e"ote' to a brie& 'escri+tio$ o& the resource curse: i$ &act, o$ce it is ar#ue' that the be$e&iciar- o&

the ri#ht to +era$e$t so"erei#$t- o"er $atural resources ust the +eo+les, it ust be a&&ire' the

e*iste$ce o& a 'ut- u+o$ States %ith abu$'a$t $atural resources o$ their territor- to u$'erta9e the

$ecessar- e&&orts to +re"e$t the resource curse &ro occurri$#( There&ore, e*+lai$i$# the a$i&ol'

as+ects o& the resource curse i+lies i'e$ti&-i$# the +he$oe$a a$' the e"e$ts that States ust tr-

to +re"e$t i& the- %a$t to e$sure the res+ect o& the ri#ht o& their +eo+les to so"erei#$t- o"er $atural

resources(

O$e o& the &irst cause o& the resource curse is that i$ a$- 'e"elo+i$# cou$tries e*+loitatio$ o&

$atural resources is re#ar'e' as the sole +ro&itable eco$oic acti"it-< as a result, #rou+s

establishi$# their co$trol o"er $atural resources #et able to a*iie their %ealth a$' their +o%er

o"er the rest o& societ-( The +roble is that the- te$' to use such %ealth $ot to &i$a$ce +ro'ucti"e

i$"este$ts, but o$l- to ai$tai$ a$' stre$#the$ their co$trol o"er their source o& re"e$ues( !$ such

a %a- e$tre+re$eurshi+ is 'is&a"oure', re$tsee9i$# beha"iours are e$coura#e' a$' +rocee's o& the

e*+loitatio$ o& $atural resources are %aste' i$ u$&ruit&ul e*+e$ses( Whe$ the sub;ects co$trolli$#

$atural resources are u$'eocratic #o"er$e$ts the- use all the re"e$ues to e$sure u$bou$'e'

%ealth to the ebers o& the ruli$# elites, to &oster their +o%er a$' to +re"e$t 'eocratiatio$s, &or

i$sta$ce bu-i$# +olitical su++ort or &i$a$ci$# State or#a$s i$ char#e o& re+ressi$# o++ositio$( O$

the other si'e, %he$ rebel #rou+s #et able to co$trol territories rich i$ $atural resources the- ca$

.0N'i"a Ko&eleKale< cit(< +( 02 ss((

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loot the a$' &i$a$ce their #uerrilla o+eratio$s %ith the +rocee's o& su##li$# such resources( !$

this case ci"il co$&licts i$ +oor cou$tries %hich ha"e abu$'a$t $atural resources te$' to last ore

a$' to +ro"o9e ore 'estructio$s a$' se"ere "iolatio$s o& hua$ ri#hts( To this e*te$t, the ost

'raatic e*a+le is re+rese$te' b- the bloo' 'iao$'sC o& cou$tries li9e Sierra eo$e or A$#ola(

The resource curse ca$ occur because o& strictl- eco$oic reaso$s too( or i$sta$ce, i$ se"eral

'e"elo+i$# cou$tries a 'oi$a$t +riar- sector base' o$ the e*tractio$ o& $atural resources

'iscoura#es i$"este$ts i$ other eco$oic sectors %hich i$ the be#i$$i$# are less +ro&itable, but

%hich i#ht +ro"i'e hi#her retur$s tha$ the e*+loitatio$ o& $atural resources as soo$ as the-

achie"e a certai$ 'e#ree o& 'e"elo+e$t( Moreo"er, as the e*+ort o& assi"e aou$ts o& $atural

resources o"er"alues real e*cha$#e rates o& 'e"elo+i$# cou$tries, this u$'eri$es i$ter$atio$al

co+etiti"e$ess o& other #oo's, +ro"i'i$# a &urther i$ce$ti"e to 'e"elo+i$# cou$tries to s+ecialie

i$ the sectors relate' to the e*+loitatio$ o& $atural resources i$stea' o& +rooti$# a #reater

'i"ersi&icatio$ i$ their eco$oies( As a result, 'e+e$'e$c- o& 'e"elo+i$# cou$tries o$ the

e*+loitatio$ o& a &e% $atural resources becoes i$creasi$#l- e$tre$che'( !$ such a situatio$ their

eco$o- is "ul$erable to the cha$#es o& %orl' +rices o& the $atural resources the- e*+orte', as %ell

as &ro the +ossible 'e+letio$ o& the $atural resources thesel"es(.2 !t is i+orta$t to $ote that,

e"e$ %he$ these e"e$ts are $ot 'irectl- cause' b- the acti"ities o& #o"er$e$ts, $e"ertheless

#o"er$e$ts %hich 'o $othi$# to +re"e$t the &ro occurri$# breach as %ell their obli#atio$ to

a$a#e $atural resources i$ their territories i$ a %a- to +roote 'e"elo+e$t &or their +eo+les(

Ho%e"er, it shoul' be u$'erli$e' that the resource curseC is $ot i$e"itable( A lo%i$coe cou$tr-

hea"il- 'e+e$'e$t o$ its $atural resources %ill $ot $ecessaril- su&&er &ro the resource curse i& it is

able to i+lee$t a'e@uate +olicies( !t is $ot +ossible to sur"e- all these +olicies i$ a$ e*hausti"e

%a- i$ this +a+er< he$ce the reai$i$# +art o& this cha+ter %ill o$l- list a &e% o& the( A +art o& the

+rocee's shoul' be 'e"ote' to +o+ulatio$s li"i$# i$ the areas %here the e*+loitatio$ o& $atural

resources is +articularl- i$te$si"e, i$ or'er to re+a- the &or the 'aa#es the- a- su&&er i$

relatio$ to the e*+loitatio$( This is es+eciall- the case o& the e*+loitatio$ o& oil&iel's, %hich

i$"ol"es hea"- +ollutio$ hari$# local +o+ulatio$s.( Moreo"er, #o"er$e$ts shoul' e$act +olicies

.26aul Ste"e$s, E"el-$ Dietsche< Resource curse: A$ a$al-sis o& causes, e*+erie$ces a$' +ossible %a-s &or%ar'%hich are i'e$tical? a&&ir that States ha"e, i$ accor'a$ce %ith the 5harter o& the U$ite' Natio$s

a$' the +ri$ci+les o& i$ter$atio$al la%, the so"erei#$ ri#ht to e*+loit their o%$ resources +ursua$t to

their o%$ e$"iro$e$tal +oliciesC but at the sae tie the- ha"e the res+o$sibilit- to e$sure that

acti"ities %ithi$ their ;uris'ictio$ a$' co$trol 'o $ot cause 'aa#e to the e$"iro$e$t o& other

States or o& areas be-o$' the liits o& $atio$al ;uris'ictio$(C More i$ #e$eral, so"erei#$t- o"er

$atural resources ust be e*ercise' res+ecti$# the +ri$ci+les o& sustai$able 'e"elo+e$t, also

accor'i$# to +ri$ci+le . o& Rio Declaratio$ %hich +ro"i'es: the ri#ht to 'e"elo+e$t ust be

&ul&ille' so as to e@uitabl- eet 'e"elo+e$tal a$' e$"iro$e$tal $ee's o& +rese$t a$' &uture

#e$eratio$sC( There&ore, the co$ce+t o& sustai$able 'e"elo+e$t %oul' atte+t to reco$cile the

ri#ht to 'e"elo+e$t >a$' the relate' ri#ht to so"erei#$t- o"er $atural resources? %ith the +rotectio$

o& the e$"iro$e$t a$' the +ri$ci+le o& i$ter#e$eratio$al e@uit-/)(

To su u+, it ca$ be co$clu'e' that the 'eclaratio$ o& the +ri$ci+le o& +era$e$t so"erei#$t- o"er

$atural resources, as %ell as the subse@ue$t a$' co$tra'ictor- +ractice o& the i$ter$atio$al

.=A( Da$ Tarloc9< Sustai$able De"elo+e$t i$ ati$ Aerica$ Rai$&orests a$' the Role o& a%: Article: E*clusi"eSo"erei#$t- Gersus Sustai$able De"elo+e$t o& a Share' Resource: The Dilea o& ati$ Aerica$ Rai$&orestMa$a#ee$t< Te*as !$ter$atio$al a% Four$al< 1==< +( /. ss(< (( Ma##io< !$terQi$tra#e$eratio$al E@uit-: 5urre$tA++licatio$s u$'er !$ter$atio$al a% &or 6rooti$# the Sustai$able De"elo+e$t o& Natural Resources< Bu&&alo

E$"iro$e$tal a% Four$al< 1==< +( )3/ ss((/3The U$ite' Natio$s 5o$&ere$ce o$ the Hua$ E$"iro$e$t< Stoc9hol Declaratio$< 1=) a"ailable o$li$e athtt+:QQ%%%(u$e+(or#QDocue$ts(Multili$#ualQDe&ault(as+Docue$t!DV=IArticle!DV103./1 The U$ite' Natio$s 5o$&ere$ce o$ E$"iro$e$t a$' De"elo+e$t< Rio Declaratio$ o$ E$"iro$e$t a$'

De"elo+e$t< 1==)< a"ailable o$li$e at htt+:QQ%%%(u$e+(or#QDocue$ts(ultili$#ualQDe&ault(as+Docue$t!DV4IArticle!DV112. /)io"a$$i 5or'i$i, 6aolo ois, Ser#io Marchisio< cit(< +( 10 ss< Nico Schri;"er, rie'l Weiss, e'(< cit< +( ss(< A( Da$Tarloc9< cit(< +( /. ss(< (( Ma##io< cit(< +( )30 ss((

)1

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cou$it- >+ractice %hich co+rises $atio$alii$#, but also co$testi$# $atio$aliatio$s a$'

si#$i$# B!Ts? has brou#ht to a situatio$ i$ %hich it ca$ o$l- be assesse' the e*iste$ce o& a "er-

"a#ue +ri$ci+le accor'i$# to %hich a State has a #e$eral ri#ht to a$a#e a$' co$trol its $atural

resources co$siste$tl- %ith its 'esires a$' its $ee's, a$' that it has the ri#ht a$' the 'ut- to a9e its

+eo+le be$e&it &ro the e*+loitatio$ o& such resources( Ne"ertheless this ri#ht is $ot absolute, as it

shoul' be e*ercise' i$ accor'a$ce %ith all the obli#atio$s 'eri"i$# &ro i$ter$atio$al la% %hich

ha"e bee$ e*ai$e' i$ this cha+ter(

or these reaso$s, %he$ i$ the $e*t cha+ters o& this +a+er ! %ill re&er to the +ri$ci+le o& so"erei#$t-

o"er $atural resources, ! %ill ea$sovereignty of peoplesa$' ! %ill $ot re&er to the ra'ical "ersio$

o& this +ri$ci+le %e ca$ rea' i$ the 5harter o& eco$oic ri#hts a$' 'uties o& States, but rather to the

il'erC "ersio$ ! +ro+ose' i$ this cha+ter, %hich is uch ore res+ect&ul o& the other ri#hts a$'

'uties +ro"i'e' &or i$ i$ter$atio$al la% a$' %hich actuall- is ore li9el- to re+rese$t a +ri$ci+le o&

i$ter$atio$al la% to'a-(

4. T#e !nre*s!n, &roeeds o( t#e e$&'o!t*t!on o( n*tur*' resoures !n so)e de+e'o&!n,

ountr!es *nd t#e re*t!on o( So+ere!,n We*'t# Funds

!$ cha+ter . it %as e*+lai$e' ho% 'e"elo+i$# cou$tries si$ce the 1=23s u$'ertoo9 $atio$aliatio$s

a$' e*+ro+riatio$s o& &orei#$ i$"este$ts( This brou#ht a$- o& the to co$trol their $atural

resources e*clu'i$# a$- other sub;ect, i$ +articular &orei#$ &irs( !$ other cases, %he$ alie$s %ere

$ot 'e+ri"e' o& their +ro+erties, the- %ere $o$etheless &orce' to acce+t to re$e#otiate the

co$cessio$ a#reee$ts to %hich the- %ere +arties( !$ this %a- 'e"elo+i$# cou$tries coul' obtai$

bi##er sta9es o& the +rocee's o& the e*+loitatio$ o& their $atural resources( E"e$ %he$, later, a$-

'e"elo+i$# cou$tries o+e$e' their ar9ets to &orei#$ i$"estors a#ai$ a$' a#ree' to si#$ B!Ts %hich

e$sure' a hi#her 'e#ree o& +rotectio$ to &orei#$ co+a$ies, the co$trol o"er $atural resources a$'

the ri#ht to obtai$ a rele"a$t +art o& the +rocee's o& their e*+loitatio$ reai$e' to the( Moreo"er,

&orei#$ 'irect i$"este$ts, bri$#i$# ca+itals, tech$olo#ies, a$' 9$o%ho%, +ro"e' use&ul to allo% a

ore e&&ecti"e e*+loitatio$ o& $atural resources a$' a better coercialiatio$ o& the o$ the

%orl' ar9ets, i$creasi$# e"e$ &urther the #ai$s o& 'e"elo+i$# cou$tries( Soe 'e"elo+i$#

cou$tries too9 a'"a$ta#e o& this situatio$ a$' i+lee$te' +olitical a$' eco$oic re&ors %hich

a'e it +ossible to re'uce %aste&ul uses o& the re"e$ues obtai$e' &ro $atural resources a$' to

i$"est the i$ other '-$aic sectors o& the eco$o- i$ or'er to re'uce 'e+e$'e$c- o$ $atural

resources( !$ rece$t -ears, as a result o& i$creasi$# 'ea$' &or coo'ities, cou$tries rich i$

$atural resources ha"e #ot &urther stre$#th %hich ha"e allo%e' the to +rete$' $e% re$e#otiatio$s

))

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o& co$cessio$ a#reee$ts a$' to obtai$ e"e$ ore &a"ourable co$'itio$s( Whe$ i$ the &irst -ears o&

LL! ce$tur- the shar+ i$crease o& %orl' +rices o& a$- coo'ities occurre', States %hich ha"e

alrea'- a$a#e' to +ro+erl- co$trol a$' e*+loit their $atural resources %ere able to accuulate i$ a

&e% -ears a hu#e a$' rather u$e*+ecte' %ealth(/.

U$&ortu$atel-, the +atter$ 'escribe' here has occurre' o$l- i$ soe 'e"elo+i$# cou$tries( Others,

&or i$sta$ce 5o$#o or Ni#eria, ha"e $ot bee$ able to tra$s&or their e$'o%e$t i$ $atural resources

i$ eco$oic a$' social %ealth a$' still reai$ i$ +oor co$'itio$s( Moreo"er, as e*+lai$e' i$

cha+ter 0, e"e$ %he$ 'e"elo+i$# cou$tries ha"e bee$ able to collect bi# re"e$ues &ro the

e*+loitatio$ o& $atural resources, o$l- a soe o& the >&or i$sta$ce Bots%a$a? ha"e bee$ able to

e$ha$ce >at least +artiall-? +ro+er re&ors %hich tur$e' such a Stateo%$e' %ealth i$to %ealth a$'

'e"elo+e$t &or all their +eo+le( Other States, &or i$sta$ce i$ the ul& re#io$, A&rica a$' 5e$tral

Asia, ha"e bee$ able to accuulate a rele"a$t %ealth, but the- are $ot able or $ot %illi$# to use it

+ro+erl- to +roote o"erall 'e"elo+e$t o& the cou$tr- a$' o& the +o+ulatio$(//!$ this +a+er it is

$ot +ossible to stu'- each o& these States a$' it is $ot +ossible to +ro"i'e ore 'etaile' e*a+les(

What ha"e bee$ +ro"i'e' here has bee$ o$l- a brie& a$al-sis o& the #e$eral tre$'s a$' ob"iousl- it

ca$$ot ta9e i$to accou$t all the +eculiarities o& si$#le cou$tries(

Ma$- 'e"elo+i$# cou$tries %hich as a result o& the e"e$ts 'escribe' i$ the &irst +art o& this cha+ter

ha"e &ou$' thesel"es %ith hu#e Stateo%$e' %ealth ha"e 'eci'e' to create' So"erei#$ Wealth

u$'s( These Stateo%$e' i$"este$t "ehicles ca$ ha"e 'i&&ere$t &u$ctio$, but the- coul' +ro"e a$

e&&ecti"e tool, i$ the ha$'s o& #o"er$e$ts or ce$tral ba$9s o& 'e"elo+i$# cou$tries, to a$a#e the

+rocee's o& the e*+loitatio$ o& $atural resources i$ a %a- to +erit to i$crease i$ the lo$# ru$ the

%ellbei$# o& their +o+ulatio$( Whether SWs i#ht +la- such a role 'e+e$'s, o$ce a#ai$, o$ the

actual use #o"er$e$ts %ill a9e o& the( The reai$i$# +art o& the this cha+ter %ill +ro"i'e a

brie& a$al-sis o& SWs, %hile i$ the $e*t cha+ter it %ill be e*+lai$e' ho% a$' u$'er %hich

/.e-a' Al Xurashi< Re$e#otiatio$ o& !$ter$atio$al 6etroleu A#reee$ts< Four$al o& !$ter$atio$al Arbitratio$< )330'eri"i$# &ro the sale o&

$o$coo'it- #oo's a$' a'e +ossible b- hi#h 'oestic rates o& sa"i$#??, a$' &iscal &u$'s,

&i$a$ce' b- sur+luses 'eri"i$# &ro +ri"atiatio$ or structural sur+luses o& the State bu'#et/4( To

the e*te$t o& the +rese$t +a+er, ! %ill &ocus o$ coo'it- &u$'s o$l-, e"e$ thou#h there are

'e"elo+i$# cou$tries, &or i$sta$ce 5hi$a, %hich ha"e create' bi# $o$coo'it- &u$'s(

5oo'it- SWs co$trol about t%o thir's o& the total assets u$'er a$a#ee$t o& SWs< /= the-

are ai$l- locate' i$ the Mi''le East a$' i$ A&rica, but also i$ Asia >Bru$ei? a$' i$ the Aericas

>USA, 5a$a'a, Ge$euela?( The ost i+orta$t coo'it- SWs ha"e bee$ establishe' i$ oilrich

cou$tries, a$' the bi##est oil +ro'ucers ha"e establishe' a SW( !$ +articular, it is thou#ht that the

lar#est SW is the Abu Dhabi !$"este$t Authorit-, create' i$ 1=2 i$ the U$ite' Arab Eirates

/0!$ter$atio$al %or9i$# #rou+ &or so"erei#$ %ealth &u$'s< e$erall- acce+te' +ri$ci+les a$' +ractices Sa$tia#o6ri$ci+lesC< !M< )334< Ste+he$ Fe$< The De&i$itio$ o& a So"erei#$ Wealth u$'< Mor#a$ Sta$le-< )33< Ste&&e$ Ker$Sau'i Arabia? a$a#i$# assets %orth /.. billio$ USD, Ku%ait

!$"este$t Authorit- >)2/ billio$ USD? !$"este$t 5or+oratio$ o& Dubai >4) billio$ USD?( There

are also coo'it- SWs %hich ha"e bee$ create' b- i$'ustrialie' cou$tries >or &e'eral States o&

i$'ustrialie' cou$tries?, &or i$sta$ce those o& Nor%a-, Alas9a a$' Alberta, but their a$al-sis 'o $ot

&all %ithi$ the sco+e o& the +rese$t +a+er(

While SWs e*ist si$ce the 1=03s >Ku%ait i$"este$t authorit-, the &irst SW, %as establishe' i$

1=0.? the aou$t o& assets u$'er their a$a#ee$t has #ro%$ s+ectacularl- i$ the last 'eca'e a$'

a$- $e% SWs ha"e bee$ create' si$ce )33., %ith the boo o& coo'it- +rices( !$ 1==3,

so"erei#$ &u$'s +robabl- hel' $o ore tha$ 033 billio$ USD a$' i$ )332 the- still %ere rele"a$tl-

saller tha$ to'a- 01( Moreo"er the last &e% -ears ha"e see$ a rele"a$t i$crease o& their i$"este$ts

i$ Euro+e a$' i$ the U$ite' States0)( This re+rese$ts a$ historical cha$#e i$ the structure o& %orl'

ca+ital &lo%s( As %e ha"e see$ i$ the +re"ious cha+ters o& this +a+er, i$ the +ast ca+itals use' to

&lo% &ro 'e"elo+e' to 'e"elo+i$# cou$tries, o&te$ i$ the atte+t to obtai$ hi#h retur$s tha$9s to

i$"este$ts %hich i+lie' the e*+loitatio$ o& local $atural resources( No%a'a-s a$- 'e"elo+i$#

cou$tries, tha$9s to the +rocee's o& the e*+loitatio$ o& their $atural resources, ha"e becoe able to

accuulate ca+itals to i$"est i$ i$'ustrialie' States(0.SWs >coo'it- a$' $o$ coo'it- both?

ha"e i$"este' ai$l- i$ &i$a$cial &irs >about ) billio$ USD i$ Euro+e a$' $earl- 23 billio$ i$ the

US? but es+eciall- i$ Euro+e the- ha"e also ac@uire' sta9es i$ other sectors as ser"ices, retail,

i$'ustr-, coo'ities e$er#-, a$' real estate0/( To a9e soe e*a+les: i$ )33 a$' i$ the &irst

@uarter o& )334 Abu Dabi !$"este$t 5ou$cil has ac@uire' a /(= sta9e o& 5iti#rou+ a$' a (0

sta9e o& 5arl-le #rou+< Xuatar !$"este$t Authorit- has ac@uire' )3 o& o$'o$ Stoc9 E*cha$#e

a$' Ku%ait !$"este$t Authorit- o& Merril -$ch(00

5. So+ere!,n We*'t# Funds *s * too' to &ro)ote t#e so+ere!,nt- o( &eo&'es o+er n*tur*'

resoures.

03Ste&&e$ Ker$< SWs a$' &orei#$ i$"este$t +olicies a$ u+'ate< Deutsche Ba$9 Research< )334< +( 0 ss(< So"erei#$Wealth u$'s i$stitute(htt+:QQ%%%(s%&i$stitute(or#Q 01 Sio$ Foh$so$< The Rise o& So"erei#$ Wealth u$'s< i$a$ce a$' 'e"elo+e$t< )33< Mala$ Riet"el'< e'(< cit(< +( ==ss((0)Ste&&e$ Ker$< SWs a$' &orei#$ i$"este$t +olicies a$ u+'ate< Deutsche Ba$9 Research< )334< +( ss(0.6aola Subacchi, 5a+ital &lo%s a$' eer#i$# ar9et eco$oies: a lar#er +la-i$# &iel'< 5hatha House< )33< +( 1ss(< Ric9 "a$ 'er 6loe# < A$tho$- Ge$ables< Har$essi$# %i$'&all re"e$ues i$ 'e"elo+i$# eco$oies< GOL< )334es+eciall- i$eral o$es? are e*haustible( This ea$s that their e*+loitatio$ at +rese$t

causes their 'e+letio$ i$ the &uture( !& the %ealth o& a State 'e+e$'s to a lar#e e*te$t o$ the, %he$

the- e$' u+ the State %ill su&&er &ro a 'raatic &all o& its re"e$ues( This i+lies that, all else bei$#

e@ual, &uture #e$eratio$s %ill $ot be allo%e' to e$;o- the sae le"el o& %ealth o& curre$t

#e$eratio$s( O$e solutio$ to this +roble i#ht co$sist i$ re'uci$# curre$t rates o& e*+loitatio$ o&

$atural resources i$ or'er to lea"e a lar#er +art o& the to &uture #e$eratio$s( Ne"ertheless this

strate#- is $ot o+tial: it is +ossible that i$ the &uture there %ill be $o ore 'ea$' &or those

$atural resources %hich to'a- are so uch re@ueste'( or i$sta$ce i$ the )3 th ce$tur- soe

eco$oists %ar$e' that too uch coal %as e*tracte' a$' co$sue', bri$#i$# %orl' reser"es to

'e+letio$ a$' +re;u'ici$# &uture o++ortu$ities o& 'e"elo+e$t( To'a- i$ the Worl' there are still

rele"a$t coal reser"es, but there is $o si#$i&ica$t 'ea$' &or the( or this reaso$, re&rai$i$# &ro

e*+loiti$# $atural resources to'a- &or the u$9$o%$ a$' u$certai$ $ee's o& &uture #e$eratio$s ris9s

to +ro"e a useless sacri&ice &or curre$t #e$eratio$s( There&ore, the best solutio$ ca$ co$sist i$

e*+loiti$# the $atural resources at +rese$t a$', at the sae tie, setti$# asi'e a +art o& the +rocee's

i$ a &u$'( The &u$' shall carr- out i$"este$ts i$ the 'oestic ar9et or abroa', i$ sectors others

tha$ those relate' to the e*+loitatio$ o& $atural resources( The retur$s &ro such i$"este$ts %ill

e$sure that &uture #e$eratio$s %ill e$;o- the sae le"el o& %ealth o& curre$t #e$eratio$s e"e$ %he$

$atural resources are e*hauste'( Moreo"er such a strate#- a9es it +ossible to tur$ a$ eco$o-

'e+e$'e$t o$ a &e% $atural resources i$to a$ eco$o- %ith se"eral +ro&itable sectors( i$all-, it

ust be u$'erli$e' that coo'ities are o$e o& the ost "olatile assets a$' there&ore re"e$ues

relate' to their e*+loitatio$ a$' sale ca$ cha$#e 'raaticall- as a result o& a$ i$crease or a 'ecrease

o& their +rice o$ the i$ter$atio$al ar9ets( The creatio$ o& so"erei#$ %ealth &u$'s is also use&ul to

stabilise the re"e$ues relate' to the e*+loitatio$ o& $atural resources, allo%i$# to set asi'e a +art o&

the %ealth i$ +erio's i$ %hich coo'it- +rices are hi#h a$' e"e$tuall- to %ith'ra% it a$' a9e it

a"ailable %he$ coo'it- +rices are lo%( 02

Si$ce SWs i$"est i$ 'oestic as %ell as i$ &orei#$ assets, o$e coul' %o$'er %h- SWs o&

'e"elo+i$# cou$tries shoul' e*+ort ca+itals abroa' i$stea' o& usi$# all resources a"ailable to

alle"iate 'oestic situatio$s o& e*tree +o"ert-( Accor'i$# to soe +o+ular e*+la$atio$s, %hich

es+eciall- a++l- to SWs %hich are re#ar'e' b- reci+ie$t cou$tries as o%$e' b- hostile a$'

u$'eocratic re#ies, i$"este$ts u$'erta9e$ o"erseas b- SWs are $ot eco$oicall- but

+oliticall- oti"ate'( !$ other %or's, SWs %oul' tr- to i$"est o"erseas i$ or'er to ta9e co$trol o&

02 Fa"ier Sa$tiso< So"erei#$ De"elo+e$t u$'s: Ke- &i$a$cial actors o& the shi&ti$# %ealth o& $atio$s< OE5DEer#i$# Mar9ets Net%or9 Wor9i$# 6a+er< )334< +( 2 ss(< Fe$$i&er Foh$so$5alari, Mala$ Rielt"el'< e'( cit(< +( 10 ssi$ +articular i& the- bu- shares i$ the 'e&e$ce sector? or to 'isru+t their

&i$a$cial ar9ets throu#h s+eculati"e a$oeu"res( O$e ca$ a&&ir that so &ar SWs ha"e $ot

beha"e' i$ such a %a-( !t ca$ be re+lie' that up to now the- ha"e beha"e' i$ a certai$ a$$er

because this has atche' to their i$terests a$' that there is $othi$# +re"e$ti$# the &ro cha$#i$#

their strate#ies as soo$ as the- &i$' it co$"e$ie$t, tur$i$# to act i$ a %a- e$'a$#eri$# the host

23Mala$ Rielt"el'< e'< cit(< +( )2 ss(< Fe$$i&er Foh$so$5alari, Mala$ Rielt"el'< e'( cit(< +( 140 ss Marco ossa$o< cit(< +(. ss((

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States( This i#ht ;usti&- a >+ree+ti"e? +rotectio$ist attitu'e o$ behal& o& i$'ustrialie' cou$tries(

Ne"ertheless, a #e$eralise' a$' i$'iscrii$ate +rohibitio$ to SWs to i$"est i$ 'e"elo+e' cou$tries

is a sel&'e&eati$# strate#-, i$ +articular i$ a +erio' o& eco$oic crisis li9e this o$e, i$ %hich as a

result o& the so calle' cre'it cru$chC li@ui'it- is scarce a$' &irs are 'es+eratel- loo9i$# &or

ca+itals %hich SWs ca$ +ro"i'e( or this reaso$ a'itti$# SWs i$"este$ts i& the- &ul&il certai$

re@uiree$ts i$ +articular %ith res+ect to tra$s+are$c- i#ht +ro"e a$ acce+table co+roise( !&

SWs are &orce' to be tra$s+are$t, reci+ie$t States ca$ 9$o% all use&ul i$&oratio$ to assess i&

SWs i$"este$ts shoul' be %elcoe' or i& the- i#ht re+rese$t, $o% or i$ the &uture, a threat to

$atio$al securit- or ore i$ #e$eral to the &u$'ae$tal i$terests o& host States( 21

5o$siste$tl- %ith this a++roach, the !$ter$atio$al %or9i$# #rou+ o$ SWs >!W?2), %hich is a

eeti$# o& States o%$i$# SWs establishe' u$'er the aus+ices o& the !$ter$atio$al Mo$etar- u$'

>!M?, ha"e a'o+te' o$ October )334 the e$erall- Acce+te' 6ri$ci+les a$' 6racticesC o$ SWs

>A66? also 9$o%$ as Sa$tia#o 6ri$ci+les( The A66 is 'e&i$e' as a "olu$tar- set o& +ri$ci+les

a$' +ractices that the ebers o& the !W su++ort a$' either ha"e i+lee$te' or as+ire to

i+lee$t( The A66 'e$otes #e$eral +ractices a$' +ri$ci+les, %hich are +ote$tiall- achie"able b-

cou$tries at all le"els o& eco$oic 'e"elo+e$t(C !t is $ot a le#all- bi$'i$# i$strue$t, but it rather

+ro"i'es #ui'eli$es a$' it is sub;ect to +ro"isio$s o& i$ter#o"er$e$tal a#reee$ts, a$' le#al a$'

re#ulator- re@uiree$tsC(2.

The A66 +ro"i'es i$iu re@uiree$ts about the le#al a$' i$stitutio$al &rae%or9 o& SWs,

their #o"er$a$ce a$' their i$"este$ts a$' ris9 a$a#ee$t strate#ies( What is e"e$ ore

i+orta$t is that the A66 re@uires SWs to 'isclose i$&oratio$ about all these issues(

Other rele"a$t $o$bi$'i$# i$ter$atio$al i$strue$ts ha"e bee$ a++ro"e' b- the OE5D 2/but the-

'o $ot a''ress $either to SWs $either to the States o%$i$# the, but to reci+ie$t cou$tries

e$coura#i$# the $ot to a'o+t u$;usti&ie' +rotectio$ist easures( The Euro+ea$ U$io$, %ith a

cou$icatio$ o& the 5oissio$20 %hich has bee$ a++ro"e' b- the 5ou$cil 22 a$' b- the

21E'%i$ M( Trua$< A Blue+ri$t &or So"erei#$ Wealth u$' Best 6ractices< 6eterso$ i$stitute &or i$ter$atio$aleco$oics< )334( E'%i$ M( Trua$< The Rise o& So"erei#$ Wealth u$'s: !+acts o$ US orei#$ 6olic- a$'Eco$oic !$terests< 6eterso$ !$stitute &or i$ter$atio$al eco$oics < )334( E'%i$ M( Trua$< our M-ths about

So"erei#$ Wealth u$'s< cit( E'%i$ M( Trua$< So"erei#$ Wealth u$'s: Ne% 5halle$#es &ro a 5ha$#i$#a$'sca+e< cit( UN5TAD< Tra'e a$' 'e"elo+e$t re+ort )334< cit( Doe$ico Si$iscalco< o"er$i alle +orte( 5risi 'elcre'ito e &o$'i so"ra$i< Mercato, 5o$corre$a Re#ole< )334< +( 4) ss(< Ste&&e$ Ker$< So"erei#$ Wealth &u$'s< Statei$"este$ts o$ the rise< cit(< +( 1/ ss(< A$'rea ol'stei$, 6aola Subacchi< cit( +( 2) ss( Fea$ra$Zois Biar'< cit( a%'atBah#at< cit(< +( 1)31 ss(< Mala$ Rielt"el'< e'< cit(< +( )2 ss(< Mathias Au'it< !s the erecti$# o& barriers a#ai$st &orei#$%ealth &u$'s co+atible %ith i$ter$atio$al i$"este$t la% Societ- o& i$ter$atio$al eco$oic la%< Wor9i$# 6a+er No(

)=Q34< )334< +( / ss(2)!$ter$atio$al Wor9i$# rou+ o& So"erei#$ Wealth u$'s: htt+:QQ%%%(i%#s%&(or#Qi$'e*(ht

2. !$ter$atio$al %or9i$# #rou+ &or so"erei#$ %ealth &u$'s< e$erall- acce+te' +ri$ci+les a$' +ractices Sa$tia#o6ri$ci+lesC< !M< )334< +( 22/OE5D< So"erei#$ Wealth u$'s a$' reci+ie$t cou$tries Wor9i$# to#ether to ai$tai$ a$' e*+a$' &ree'o o&i$"este$t< OE5D< )334

)=

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6arliae$t 2,has coitte' itsel& to coo+erate %ith i$ter$atio$al or#a$iatio$s &or the re#ulatio$s

a$' the o$itori$# o& SWs( Moreo"er it has 'eclare' that curre$t E5 +ro"isio$s ca$ a++l- to

SWs, %ithout the $ee', &or this oe$t, to a'o+t $e%, s+eci&ic rules( 24A 'etaile' stu'- o& the

co$te$t o& the abo"e e$tio$e' 'ocue$ts %oul' &all outsi'e the sco+e o& this +a+er( !t is o$l-

i+orta$t to u$'erli$e that a$ atte+t has bee$ a'e to +rese$t the $ot as a 'e"ice o&

i$'ustrialie' cou$tries to hi$'er i$"este$ts o& SWs, but as the &irst ste+s to create a$

i$ter$atio$all- a#ree' le#al &rae%or9 i$ %hich the acti"ities o& SWs ca$ +roote eco$oic

#ro%th &or all %ithout threate$i$# a$-o$e( Accor'i$# to this +ers+ecti"e, States i$ %hich SWs

i$"est %oul' be$e&it &ro rele"a$t i$;ectio$s o& ca+itals a$' States o%$i$# SWs %oul' use the

to allocate the +rocee's o& the e*+loitatio$ o& their $atural resources i$ a %a- +ro'uci$# %ealth &or

curre$t a$' &uture #e$eratio$s both( !$ suar-, e$coura#i$# SWs to be ore tra$s+are$t shoul'

be$e&it:

the States i$ %hich the- e*+ort ca+itals, because the- %ill be assure' that such i$"este$ts

%ill $ot har their &u$'ae$tal $atio$al i$terests,

the citie$s o& the States o%$ers o& the SWs, as the- coul' o$itor i& SWs are actuall-

a$a#e' to +roote sustai$able 'e"elo+e$t or i& the- are use' i$ the e*clusi"e i$terests o&

u$'eocratic elites(

!t ca$ be co$clu'e' that i$ theor- the ratio$ale o& SWs is co$siste$t %ith the +ri$ci+les o&

sustai$able 'e"elo+e$t a$' o& so"erei#$t- o& +eo+les o"er their $atural resources( !$ +ractice the

creatio$ o& SWs ca$ reall- +roote the res+ect o& such +ri$ci+les o$l- i& these Stateo%$e'

i$"este$t "ehicles eet certai$ sta$'ar's o& tra$s+are$c- a$' accou$tabilit-( This &i$all- 'e+e$'s

o$ the le#al &rae%or9 o& the States establishi$# the, as %ell as o$ the @ualit- o& their 'eocrac-

a$' their i$stitutio$s( E*isti$# i$ter$atio$al i$strue$ts a++licable to SWs are +riar- 'e"ise' i$

the i$terest o& i$'ustrialie' States %hich are the reci+ie$t o& SWs i$"este$ts< $e"ertheless,

%he$ the- e$coura#e SWs to be ore tra$s+are$t, the- ca$ act &or the #oo' o& the citie$s o& the

States o& the SWs too( !$ this %a- SWs coul' +ro"e a$ e&&ecti"e tool to +roote the so"erei#$t-

o& +eo+les o"er their $atural resources a$' to e$sure their ri#ht to be$e&it &ro the(

205oissio$ o& the Euro+ea$ 5ou$ities< 5ou$icatio$ &ro the 5oissio$ to the Euro+ea$ 6arliae$t, the

5ou$cil, the Euro+ea$ Eco$oic a$' Social 5oittee a$' the 5oittee o& the re#io$s A coo$ Euro+ea$a++roach to So"erei#$ Wealth u$'s< 5OM>)334? 110 &i$al< )334

225ou$cil o& the Euro+ea$ U$io$, Eco$oic a$' i$a$cial A&&airs, )40th 5ou$cil eeti$#, 1=)Q34, / March )334(2Resolutio$ o& Euro+ea$ 6arliae$t o$ so"erei#$ %ealth &u$'s, 62[TA 6ROG>)334?3.00, Strasbour#, = Ful- )334,246hili++e u#ler a$' Fulie$ 5haisse< So"erei#$ Wealth u$'s i$ the Euro+ea$ U$io$: e$eral trust 'es+ite co$cer$sG!!? )1 Deceber 1=0)

UNA res( 1.1/ >L!!!? 1) Deceber 1=04

UNA res( 1)3 >LG!? 1= Deceber 1=21

UNA res( 143. >LG!!? 1/ Deceber 1=2)

UNA res( )104 >LL!? )0 No"eber 1=22

UNA res( .11 >LLG!!!? 1 Deceber 1=.

UNA res .)31 > SG!? 1 Ma- 1=/

UNA res .)3) > SG!? 1 Ma- 1=/

UNA res .)41 >LL!L? 1) Deceber 1=/

UNA res( /1Q1)4 / Deceber 1=42

!$ter$atio$al 5o"e$a$t o$ 5i"il a$' 6olitical Ri#hts A'o+te' a$' o+e$e' &or si#$ature, rati&icatio$

a$' accessio$ b- e$eral Assebl- resolutio$ ))33A >LL!? o& 12 Deceber 1=22

!$ter$atio$al 5o"e$a$t o$ Eco$oic, Social a$' 5ultural Ri#hts A'o+te' a$' o+e$e' &or

si#$ature, rati&icatio$ a$' accessio$ b- e$eral Assebl- resolutio$ ))33A >LL!? o& 12 Deceber

1=22

A&rica$ 5harter o$ Hua$ a$' +eo+les ri#hts< 1=41< a"ailable o$li$e at

htt+:QQ%%%(ach+r(or#Qe$#lishQ[i$&oQcharter[e$(htl

The U$ite' Natio$s 5o$&ere$ce o$ the Hua$ E$"iro$e$t< Stoc9hol Declaratio$< 1=)

a"ailable o$li$e at htt+:QQ%%%(u$e+(or#QDocue$ts(Multili$#ualQDe&ault(as+

Docue$t!DV=IArticle!DV103.

.0

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The U$ite' Natio$s 5o$&ere$ce o$ E$"iro$e$t a$' De"elo+e$t< Rio Declaratio$ o$

E$"iro$e$t a$' De"elo+e$t< 1==)< a"ailable o$li$e at

htt+:QQ%%%(u$e+(or#QDocue$ts(ultili$#ualQDe&ault(as+Docue$t!DV4IArticle!DV112.

UN5TAD, Tra'e a$' De"elo+e$t Re+ort )334, a"ailable at

htt+:QQ%%%(u$cta'(or#QTe+latesQ6a#e(as+i$t!te!DV/043Ila$#V1

!$ter$atio$al %or9i$# #rou+ &or so"erei#$ %ealth &u$'s< e$erall- acce+te' +ri$ci+les a$' +ractices

Sa$tia#o 6ri$ci+lesC< !M< )334

OE5D< So"erei#$ Wealth u$'s a$' reci+ie$t cou$tries Wor9i$# to#ether to ai$tai$ a$' e*+a$'

&ree'o o& i$"este$t< OE5D< )334

5oissio$ o& the Euro+ea$ 5ou$ities< 5ou$icatio$ &ro the 5oissio$ to the Euro+ea$

6arliae$t, the 5ou$cil, the Euro+ea$ Eco$oic a$' Social 5oittee a$' the 5oittee o& the

re#io$s A coo$ Euro+ea$ a++roach to So"erei#$ Wealth u$'s< 5OM>)334? 110 &i$al< )334

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