Highlights • In response to changing economic realities and multiple crises, investment policy-making is experiencing a paradigm shift. As a result, inclusive growth and sustainable development have emerged as key policy objectives. • At the international level, policy-making faces multiple challenges. The most pertinent of these are how to strengthen the sustainability dimension of international investment agreements (IIAs); how to preserve appropriate regulatory space for host countries; how to deal with the complexity of a fragmented treaty regime characterised by overlaps and incoherence; and how to address serious deficiencies in investor-State dispute settlement (ISDS). • UNCTAD, and its recently launched Investment Policy Framework for Sustainable Development (IPFSD) offer a two pronged approach for addressing these challenges. o First, IPFSD offers expert guidance for the future formulation of investment policies. Through its eleven core principles, its guidelines on national policy making and its options for IIA clauses, IPFSD provides direction for every level of investment policy-making. o Second, UNCTAD complements this expert-led guidance with a universal, inclusive and transparent policy dialogue. Given its multi-stakeholder nature, UNCTAD offers a forum for a diverse set of actors ranging from civil society, business and academia to working- and high-level representatives and policy-makers from countries at all levels of development. • The two prongs are not only mutually re-enforcing each other, but also complemented by UNCTAD’s world-wide recognition of being the United Nations’ focal point for issues related to investment and sustainable development. TOWARDS A NEW GENERATION OF INTERNATIONAL INVESTMENT POLICIES: UNCTAD’S FRESH APPROACH TO MULTILATERAL INVESTMENT POLICY-MAKING Updated in light of the World Investment Report 2013. This note was originally prepared by UNCTAD DIAE on the occasion of the Helsinki Investment Regime Seminar, 10-12 April 2013. This publication has not been formally edited. No. 5 July 2013 UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT IIA ISSUES NOTE
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Highlights• In response to changing economic realities andmultiple crises, investment
• At the international level, policy-making faces multiple challenges. Themost pertinent of these are how to strengthen the sustainability dimensionof international investmentagreements (IIAs);howtopreserveappropriateregulatory space for host countries; how to deal with the complexity of afragmentedtreatyregimecharacterisedbyoverlapsandincoherence;andhowtoaddressseriousdeficienciesininvestor-Statedisputesettlement(ISDS).
• UNCTAD, and its recently launched Investment Policy Framework for Sustainable Development (IPFSD)offeratwoprongedapproachforaddressingthesechallenges.
o First,IPFSDoffersexpertguidanceforthefutureformulationofinvestmentpolicies. Through its eleven core principles, its guidelines on nationalpolicymakinganditsoptionsforIIAclauses,IPFSDprovidesdirectionforeverylevelofinvestmentpolicy-making.
o Second,UNCTADcomplementsthisexpert-ledguidancewithauniversal,inclusive and transparent policy dialogue. Given its multi-stakeholdernature,UNCTADoffersaforumforadiversesetofactorsrangingfromcivilsociety,businessandacademiatoworking-andhigh-levelrepresentativesandpolicy-makersfromcountriesatalllevelsofdevelopment.
• The two prongs are not only mutually re-enforcing each other, but alsocomplemented by UNCTAD’s world-wide recognition of being the UnitedNations’ focal point for issues related to investment and sustainabledevelopment.
TOWARDS A NEW GENERATION OF INTERNATIONAL INVESTMENT POLICIES:
UNCTAD’S FRESH APPROACH TO MULTILATERAL INVESTMENT POLICY-MAKING
Updated in light of the World Investment Report 2013.
This note was originally prepared by UNCTAD DIAE on the occasion of the Helsinki Investment Regime Seminar, 10-12 April 2013.
This publication has not been formally edited.
No. 5July 2013
U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T
IntroductionRecent changes in the global political and economic environment, including aseriesofcrisesinfinance,foodsecurityandtheenvironment,areleadingtoanewgenerationofforeigninvestmentpoliciesthatplaceinclusivegrowthandsustainabledevelopmentattheheartofeffortstoattractandbenefitfrominvestment.
On the international plane, made up of nearly 3,200 international investmentagreements(IIAs),thepressingpolicychallengesinclude:
• strengtheningthedevelopmentdimensionoftheinvestmentpolicyregime;• ensuring sufficient policy space for host countries by balancing public and
These challengeswouldbebest solved through coordinated efforts.UNCTAD’sexperienceinthisarea,mostrecentlyembodiedinitsInvestment Policy Framework for Sustainable Development, can serve as a foundation for future consensus-buildingoninternationalinvestmentpolicies.
Thisnote(A)providesanoverviewoftherelevantchanges intheeconomicandpolicy environment; (B) discusses the key trends and pressing challenges ininternationalinvestmentpolicymaking;and(C)putsforwardtheideaofmultilateralconsensus-buildingasawaytodealwithexistingchallengesandsetsoutsomeconsiderationswithregardtothisprocess.
A. The evolving context for IIAs
1. Changing investment landscape
The investmentand investor landscapehasundergone fundamental changes inrecent years (figure 1). Since 2010, developing and transition economies haveabsorbedmorethanhalfofglobalFDIinflows,andin2012FDIflowstodevelopingeconomies,forthefirsttimeever,exceededthosetodevelopedcountries–withUS$142billionmore(WIR 2013).
Figure 1. Global FDI inflows, developed, developing andtransition economies, 2000-2012
Today,transnationalcorporations(TNCs)andtheirinternationalproductionnetworksplayasignificantrole,withforeignaffiliates’economicactivityhavingincreasedin2012acrossallmajor indicatorsof internationalproduction (sales,valueadded,assets,exportsandemployment)(table1).Inthatyear,foreignaffiliatesemployedanestimated72millionpeople,whogeneratedUS$26trillioninsalesandUS$6.6trillioninvalueadded.DatafromUNCTAD’sannualsurveyofthelargest100TNCssuggest that the foreignsalesandemploymentof thesefirmsgrowsignificantlyfasterthanthoseintheirhomeeconomy.
Table 1. Selected indicators of FDI and international production, 1990, 2011
A series of crises in finance, energy, food security and the environment haverevealedpersistentglobalimbalancesandsocialchallenges,especiallywithregardtopovertyalleviation.Thesecrisesandchallengesarehavingprofoundeffectsonthewaypolicyisshapedatthegloballevel.First,currentcriseshaveaccentuateda longer-term shift in economic weight from developed countries to emergingmarkets. Second, the financial crisis in particular has strengthened the role ofgovernments in theeconomy, inboth thedevelopedand thedevelopingworld.Third, the nature of the challenges, which no country can address in isolation,makes international coordination imperative.And fourth, theglobalpolitical andeconomiccontextandthechallengesthatneedtobeaddressed–withsocialandenvironmentalconcernstakingcentrestage–areleadingpolicymakerstoreflectonanemergingnewdevelopmentparadigmthatplacesinclusiveandsustainabledevelopmentgoalsonthesamefootingaseconomicgrowth.
One important policy trend is that governments have become more active ineconomicpolicies.Moreandmoregovernmentsaremovingawayfroma“hands-off”approachtoeconomicgrowthanddevelopmentthathadprevailedpreviously.
Industrial policies and industrial development strategies are proliferating indevelopinganddevelopedcountriesalike.Thistrendreflects, inpart,arenewedrealism about the economic and social costs of unregulated market forces. Astronger roleof theStatealsomanifests itselfwith regard toothersustainabilityissues.Newsocialandenvironmentalregulationsarebeingintroducedorexistingrulesreinforced;governmentsareincreasingeffortstopromoteactivelythemovetowardssustainabledevelopment,forexamplethroughtheencouragementoflow-carbonFDI(WIR 2010,WIR 2011,WIR 2012, WIR 2013).
As a result, a “new generation” of investment policies is emerging, pursuing abroaderandmoreintricatedevelopmentpolicyagenda.Broadly,“newgeneration”investmentpoliciesarecharacterizedby(i)arecognitionoftheroleofinvestmentas aprimarydriver of economicgrowth anddevelopment, and the consequentrealization that investmentpoliciesareacentralpartofdevelopmentstrategies;and(ii)adesiretopursuesustainabledevelopmentthroughresponsibleinvestment,placingsocialandenvironmentalgoalsonthesamefootingaseconomicgrowthanddevelopmentobjectives(WIR 2012).
B. International investment policy making: current trends and challenges
1. Key trends in IIA rulemaking
By the end of 2012, the overall number of IIAs approached 3,200 agreements,including close to 2,850 BITs and some 350 “other IIAs”1 (figure 2). Almosteverycountry isparty tooneormore IIAs.This treatynetworkoffersprotectiontoapproximately two-thirdsofglobalFDIstockandcoversone-fifthofpossiblebilateralinvestmentrelationships(WIR 2011).
Figure 2. Trends of BITs and “other IIAs”, 1980–2012
Source: UNCTAD. Data for 2012 are preliminary.
1 “Other IIAs” include agreements such as free trade agreements (FTAs) or economic partnership agreements, and usually fall in one of three categories: (i) IIAs including obligations commonly found in BITs; (ii) agreements with limited investment-related provisions; and (iii) IIAs focusing on investment cooperation and/or providing for a negotiating mandate on investment (WIR 2011, WIR 2012).
Intoday’sspaghettibowlofIIAs,bilateralagreementsconstitutetheoverwhelmingmajority.However, in termsof economic significance, therehasbeenagradualshift towards regionalism. This is particularly the case with respect to currentnegotiations,wheremostprominentdevelopmentsaretheongoingnegotiationoftheTrans-PacificPartnershipAgreement(TPP)(thecombinedeconomicweightoftheparticipatingStatesamountsto35percentoftheglobalGDP),andtheEuropeanUnion’snewinvestmenttreaty-makingpowers(anyagreementconcludedbytheEUasablocwillbringtogetheratleast27+1countries).Otherregionalgroupings,such asASEANorCentral America, have also emerged as regional investmentactors. Inmostcases, regional treatiesareat thesame timeFTAsandaddresstradeandinvestmentinacomprehensivemanner(WIR 2012).
Theshift to regionalismcanbringabout theconsolidationandharmonizationofinvestmentrulesandrepresentasteptowardsmultilateralism.Currently,at least110countrieswereinvolvedin22negotiationsofregionalagreements.However,wherenewregionaltreatiesdonotentailthephase-outofoldbilateralones,theresult can be the opposite: instead of simplification and growing consistency,regionalizationmayleadtoamultiplicationoftreatylayers,makingtheIIAnetworkeven more complex and prone to overlaps and inconsistencies. Nevertheless,current regional IIAnegotiationspresentawindowofopportunity toconsolidatetheexistingnetworkofBITs.Nineselectedregionalnegotiationscurrentlyunderwaymaypotentiallyoverlapwithcloseto270BITs,whichconstitutenearly10percentoftheglobalBITnetwork(WIR 2013).
Sustainability considerationshavebeengainingprominenceinthenegotiationofIIAs.AlthoughmanyoftherecentlyconcludedIIAsfollowthetraditionalBITmodelthatfocusessolelyoninvestmentprotection,othersincludeinnovations.Severalofthenewfeaturesaremeanttoensurethatthetreatydoesnotinterferewith,butinsteadcontributes to, countries’ sustainabledevelopment strategies that focuson inclusiveeconomicgrowth,supportspolicies for industrialdevelopment,andaddresses the environmental and social impacts of investment (WIR 2012, WIR 2013).
AnothernotabletrendhasbeentheongoingreassessmentbynumerouscountriesoftheirIIAs.Governmentshaveapproachedthisinadifferentmanner,including(i)revisingtheirmodelBITs,(ii)renegotiating“old”BITstoreplacethemwith“modern”ones,(iii)puttingonholdtheconclusionofanynewagreements,and(iv)sometimesterminating existingBITs and denouncing the ICSIDConvention (WIR 2010). Atthesametime,the IIAregimeisreachinga junctureas1,300BITswillbeatthestagewheretheycouldbeterminatedorrenegotiatedatanytimehenceofferinganopportunityfortreatypartnerstorevisittheiragreements,withaviewtoaddressinginconsistenciesandoverlapsinthemulti-facetedandmulti-layeredIIAregimeandtostrengthenitsdevelopmentdimension(WIR 2013).
These actions have been taken largely in response to an increasing number ofinternational investor-State claims that often touch upon sensitive public policyissues, may lead to unexpected interpretation of IIA provisions and/or entail aheavyfinancialtollonStatebudgets.Therehasbeenasteadygrowthofinvestmentarbitration cases against host countries: by the end of 2012, the total numberof known treaty-baseddisputes reached514 (figure 3) and the total number ofcountriesthathaverespondedtooneormoreinvestmenttreatyclaimincreasedto95.
Figure 3. Known investor-State treaty-based disputes, 1987-2012
Source: UNCTAD.
2. Key challenges for international investment policy making
The above-mentioned policy developments have brought to light a number ofdemandingchallenges.
First, policymakers in some countries, especially those seeking to implementindustrialdevelopmentstrategiesoradjustregulatoryframeworks,havefoundthatIIAscanundulyconstraindomesticpolicyspace.Manypolicymakershaveobservedthat IIAs are focused almost exclusively on protecting investors and do not doenoughtopromoteinvestmentfordevelopment.WhileIIAs–implicitlyorexplicitly– recognize the sovereign right of host countries to regulate foreign investmentin their territory,questionsabout the“right”balancebetweenprivateandpublicinterests in IIAs, and how to achieve it in technical terms, remain an importantsubjectfordiscussion.Similarly,whileIIAs–byensuringstabilityofthelegalregime–canplayaroleinstemmingprotectionisttendencies,itisalsoimportantthatIIAsgrantsufficientregulatoryflexibilitytorespondtochangingcircumstances.
The second challenge involves adjusting the balance between the rights andobligationsofStatesandinvestors.ThismeansthatinadditiontotheIIAs’goalofprotectingforeigninvestments,moreattentionshouldbegiventothecorrespondingresponsibilitiesofinvestors.Furthertoinvestors’obligationtorespectthelawsofthehostcountry,IIAsshouldgivemoreprominencetotheissueofcorporatesocialresponsibility.
Thethirdchallengeistoresolveissuesstemmingfromtheincreasingcomplexityoftheinternationalinvestmentregime.Thecurrentregimeconsistsofthousandsoftreaties(mostlyBITs,FTAswithinvestmentprovisions,andregionalagreements).This construct has a number of systemicdeficiencies, including gaps, overlapsand inconsistencies in coverage and content. Also, the “interconnect” betweeninternational investment policies and other policy areas such as trade, finance,competitionorenvironmental(e.g.climatechange)policies,isabsent.
ThefourthchallengestemsfromtheshortcomingsoftheISDSsystem.Concernsinclude (i) anexpansiveuseof IIAsby investors that reachesbeyondwhatwasoriginally intended; (ii) contradictory interpretations of key IIA provisions by adhoc tribunals, leading touncertaintyabout theirmeaning; (iii) the inadequacyofICSID’sannulmentornational judicial reviewmechanismstocorrectsubstantivemistakesofarbitrationtribunals;(iv)theemergenceofa“club”ofindividualswho
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serveascounselinsomecasesandarbitratorsinothers,oftenobtainingrepeatedappointments;(v)thepracticeofnominatingarbitratorswhoarelikelytosupportthepositionofthepartyappointinghim/her;(vi)thesecrecyofmanyproceedings;(vii) the high costs andconsiderable lengthof arbitrationproceedings; and (viii)overallconcernsaboutthelegitimacyandequityofthearbitrationsystem.Thesechallenges have prompted a debate about the challenges and opportunities ofISDS.Thisdiscoursehasbeendevelopingthroughrelevant literature,academic/practitioner conferences and the advocacy work of civil society organizations.It has also been carried forward under the auspices of UNCTAD’s InvestmentCommissionandExpertMeetings,itsmulti-stakeholderWorldInvestmentForum(WIF)andaseriesofinformalconversationsithasorganized,aswellastheOECD’sFreedom-of-InvestmentRoundtables(WIR 2012, WIR 2013).
IIA stakeholders are prompted to assess the current system,with the availableoptionsandembarkonconcretestepsforreform.Collectiveeffortsatthemultilaterallevelcanhelpdevelopaconsensusaboutthepreferredcourseofreformandwaystoputitintoaction(WIR 2013).
C. UNCTAD’s approach to multilateral investment policy-making
Infact,UNCTADhaslongbeenprovidingsuchamechanism,asithasbeen–widelyandfirmly–recognizedasthefocalpointoftheUnitedNationssystemfordealingwith IIA-related issues.Over thepast years,UNCTADhas takena twoprongedapproach, providing comprehensive expert-led guidance for investment policy-making and establishing amultilateral, multi-stakeholder forum for an inclusivedialogueforinvestmentandsustainabledevelopmentissues.
TheapproachadvocatedbyUNCTADhasitsoriginsinthe2008“AccraAccord”whichencouragedworkintheformofinteractiveexpertmeetingswithpracticalandactionableoutcomes“such as inventories of best practices, checklists, indicative guidelines, sets of criteria or principles, and model frameworks”.2
Inthisspirit,UNCTAD’sDivisiononInvestmentandEnterprise launched in2012its Investment Policy Framework for Sustainable Development (IPFSD). TheFrameworkisacomprehensiveembodimentofUNCTAD’sexperienceintheareaofinvestmentpolicy-makingdevelopedinlinewiththeobjectivesofinclusivegrowthandsustainabledevelopmentandthroughaprocessthatinvolvedtopexpertsandawiderangeofstakeholders.ItisdesignedtoserveasakeypointofreferenceforinvestmentpolicymakersandtobecomethebasisforUNCTAD’scapacity-buildingandtechnicalcooperationinthisarea.
It is complementedbyother aspects ofUNCTAD’swork relevant tomultilateralconsensus building, e.g. the Entrepreneurship Policy Framework, the Principles
forResponsibleAgriculturalInvestment(PRAI),contributionstovariousG20workstreams (suchas thoseon long-term investment,corporatesocial responsibility,“green growth”, global value chains, private investment and job creation, andinvestmentpolicymonitoring),andtheDivision’sinputstovarioussummits(suchasG8,G20,ASEANandAPEC).
Currently,theIPFSDisatthestageofwidedisseminationandpilotuse.Thenextstagewill involve its review in lightof the feedbackreceivedand lessons learnt.TheFrameworkwasdesignedasa“livingdocument”thatcanbediscussedandupdatedcontinuously.
The remainderof thissectiondiscusseshow the IPFSD-basedprocesscan,onthe one hand, serve as amodel, and on the other hand, feed intomultilateralconsensus-buildingoninvestment.Tothisend,itaddressesthefollowingaspectsofthepotentialmultilateralconsensus-building,asinspiredbytheIPFSD:objectives,substance,processandend-use.
Multilateralconsensus-buildingcanbring importantbenefits. Itcanhelp identifyareasofbroadagreementanddisagreement.Thisinitselfcanfacilitatediscussionsdirectedat resolvingpotentialdisagreements.Ataminimum,clarificationof theextent of consensus in the IIA universe serves the interest of transparency andpredictability.By improving–wherepossible–coherencebetweenagreements,consensus-buildingcanalsofurthertheclarity,stabilityandtransparencyoftheIIAsystem.Thisworkcangraduallyestablishadevelopment-friendlyfoundationforapossiblefuturemultilaterallybindinginvestmentregime.
2. Substance
The IPFSD is designed as a holistic, comprehensive and synergistic policytool. It isholisticas itviews investmentnot in isolationbutaspartofabroaderagendaandcountries’overalldevelopment strategies. It is comprehensiveas itaddresses all aspects of investment policies and does sowith respect to bothnational and international policy-making. It is synergistic as it recognizes andembracesinteractionswithrelatedpolicyareasrangingfromtaxationtotradetoenvironmentalandlabourmarketpolicies.ThroughouttheIPFSD,inclusivegrowthandsustainabledevelopmentserveasitsmainguidingprinciples.
IPFSD’s Core principles.TheelevenCorePrinciplesaimtoguidethedevelopmentof investment policies, both national and international (table 2). They are a setof “design criteria” for investment policies that aim to mainstream sustainabledevelopment in investment policymaking, while confirming the basic principlesofsounddevelopment-orientedinvestmentpolicies,inabalancedapproach.Theprinciples should be read as a package, because interaction between them isfundamental.
The IPFSD’s national investment policy guidelines argue for policy action atdifferent levels: at the strategic level, the guidelines suggest that policymakersshouldgroundinvestmentpolicyinabroadroadmapforeconomicgrowthandsustainable development; at the normative level, they propose that through thesettingofrulesandregulationsoninvestmentandinarangeofotherpolicyareas- suchas trade, taxation, labour andenvironmental regulations, and intellectualpropertypolicies-policymakersshouldpromotesustainabledevelopment,andattheadministrativelevel,theycallforreviewingandmonitoringtheeffectivenessofinvestmentpolicies.
IPFSD’s guidance on IIAs. The objective of the IPFSD’s IIA part is to assistpolicymakers insearch foranoptimal investment treatydesign. It addressesallprincipal IIA elements including treaty scope, substantive obligations, disputesettlementandothers.Withrespecttoeachelementandsub-element,itsetsoutamenuofoptions,fromwhichnegotiatorscanpickandchoose,adoptandadaptaspertheirneeds.TheaccompanyingcommentariesdiscusspolicyoptionsinlightoftheCorePrinciplesandaremeanttohelpIIAnegotiatorsidentifythosedraftingoptionsthatbestsuittheircountries’needs,preferencesandobjectives.
• The overarching objective of investment policymaking is to promote investment for inclusive growth and sustainable development.
2. Policy coherence • Investment policies should be grounded in a country’s overall development strategy. All policies that impact on investment should be coherent and synergetic at both the national and international levels.
3. Public governance and institutions
• Investment policies should be developed involving all stakeholders, and embedded in an institutional framework based on the rule of law that adheres to high standards of public governance and ensures predictable, efficient and transparent procedures for investors.
4. Dynamic policymaking • Investment policies should be regularly reviewed for effectiveness and relevance and adapted to changing development dynamics.
5. Balanced rights and obligations
• Investment policies should be balanced in setting out rights and obligations of States and investors in the interest of development for all.
6. Right to regulate • Each country has the sovereign right to establish entry and operational conditions for foreign investment, subject to international commitments, in the interest of the public good and to minimize potential negative effects.
7. Openness to investment • In line with each country’s development strategy, investment policy should establish open, stable and predictable entry conditions for investment.
8. Investment protection and treatment
• Investment policies should provide adequate protection to established investors. The treatment of established investors should be non-discriminatory.
9. Investment promotion and facilitation
• Policies for investment promotion and facilitation should be aligned with sustainable development goals and designed to minimize the risk of harmful competition for investment.
10. Corporate governance and responsibility
• Investment policies should promote and facilitate the adoption of and compliance with best international practices of corporate social responsibility and good corporate governance.
11. International cooperation
• The international community should cooperate to address shared investment-for-development policy challenges, particularly in least developed countries. Collective efforts should also be made to avoid investment protectionism.
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This approach to developing the IPFSDwill also guide the further evolution ofthe IPFSD as an expert-driven, rather than a negotiator-driven, consensus-buildingprocessthatusesUNCTAD’sintergovernmentalmachineryinallitsfacets(ranging from expertmeetings, to the Investment, Enterprise and DevelopmentCommission,theTradeandDevelopmentBoardandthequadrennialConferences)andthatinvolvesmulti-disciplinaryexpertise(legal,economic,business),andmulti-stakeholder engagement (from public and private sector, and from developed,developingandtransitioneconomies).
This will also guarantee the inclusiveness and universality of the process, withparticipationopentoallinvestment-developmentstakeholdersatalllevels–fromHeads of States to grassroots civil society organizations, from CEOs of globalcompanies to executives of small andmedium-sized enterprises in developingcountries;andwithmulti-stakeholderengagementatmultiple levelsofplatformsforconsensusbuilding,includingtheWorldInvestmentForum,eventswithregionalorganizations,nationalworkshops,etc.Together,thisandtheopen-sourcenatureoftheweb-basedpolicyhubforfeedback,debatesandbestpracticesexchangeswillensurethe“living”characterofthis instrumentforregularupdateandrealitycheck.
4. End-use
TheIPFSDismeanttoprovideguidanceforpolicymakingintheinvestmentfield.Itoffersa“policyataglance”forpoliticians(theCorePrinciples),ahandbookfornationalpolicymakers(thenationalinvestmentpolicyguidelines),anda“checklistofoptions”fortreatynegotiators(thepolicyoptionsforIIAs).TheFrameworkalsoserves as a tool for technical cooperation and capacity-building in the area ofmakinginvestmentworkfordevelopment.ItprovidestheframeworkforUNCTAD’sInvestment Policy Reviews (IPRs); it is thebasis forupdatingnational regulatoryregimes; and it is used as amenu for trainingworkshops and a handbook forgeneraladvisoryservices.
Among the most pressing challenges for IIA negotiators are to strengthen thedevelopmentdimensionof the international investmentpolicy regime; toensuresufficientpolicyspaceforhostcountriesbybalancingpublicandprivateinterests;toaddressdeficienciesintheISDSsystem;andtoresolveissuesstemmingfromtheincreasingcomplexityoftheinternationalinvestmentpolicyregime,allofwhichwithaviewtoachievingsustainabledevelopmentobjectives.
Therearesignificantbenefitsassociatedwithmultilateralconsensus-buildingoninvestmentpolices.UNCTADadvocatesan inclusive, transparentandstructureddebateonkeyissues,towhichtheIPFSDandthe Investment-policy-hubcanprovidea foundation. Through proper staging and sequencing, multilateral consensus-buildingcanmovefromloosetocloserformsofinternationalcooperation,yieldingpracticaloutcomesalongtheway.
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