Better Rules for a Better Future: Regulating Private Sector Investments in ASEAN

8 August 2011<enter date><enter name>

2

ASEAN as an attractive investment destination• Combined population of 620 million people• Aggregate economy valued at of more than USD

2.3 trillion• Average annual GDP growth of 6%• ASEAN combined represent 7th of the largest

economy in the world

3

FDI Inflows in ASEAN• In 2014, ASEAN is the largest FDI recipient in the developing world.

• FDI inflows into the country increased from USD 117.7 billion in 2013 to 136.2 billion in 2014.

• Two thirds of FDI inflows came from the EU, intra-ASEAN, Japan, US, and Hong Kong (China)

• FDI in agriculture increased from USD 2.3 billion in 2013 to USD 4.5 billion in 2014

• Global FDI flows declined by 16% over the same period

Source: ASEAN Investment Report, 2015

4

Two sides of private sector agricultural investments…..

5

Positive Side

6

Negative Side

7

Reports of displacement and land conflicts • Wilmar International (Singapore) Palm Oil Production in

Indonesia

8

Food Insecurity

9

Environmental degradation

10

11

ASEAN Policies on Investment

12

Some provisions of ACIA

• Greater investment liberalization, includes covering many sectors such as agriculture

• Safeguards against expropriation and nationalization of companies

• Unencumbered repatriation of investors’ capital and earnings

• Prohibition of requiring nationals in management and board

• Compensation of losses due to strife

13

Do we need common/regional policies to protect people’s rights

in the context of rising investments?

14

Yes!

15

1. To promote good governance everywhere and anywhere in ASEAN

16

2. To arrest race to the bottom and promote upward harmonization of good policies and practices

17

3. To concretize sustainable, caring and sharing community

18

4. Because ASEAN can (difficult but not impossible) ASEAN charterBalance respect for sovereignty of ASEAN

Member States with need to create ASEAN community

ASEAN binding agreements and common standards

19

5. Because there is a need for it

There is a need to protect peoples and communities’ rights, welfare and livelihood;

There is a need to safeguard food security;

There is a need to protect the environment;

There is a need to ensure economic and social justice.

20

21

What should be the component of ASEAN policies on investments?

22

Free, Prior and Informed Consent of local communities that will be affected by the project

23

Policies promoting land rights and food security

24

Standards and regulations for good contracts

25

Regional standards for publicly disclosed full impact assessment

26

Mechanism for filing complaint and seeking recourse

27

How can this be done?

RegionalPolicies onPS Agri Investments

Upward harmonization

28

Thank you!