Book contents
- Frontmatter
- Contents
- Preface
- Preface to the first edition
- Abbreviations
- Glossary of Arabic words used
- Table of cases
- Table of statutes
- Table of treaties
- PART I Certain preliminary issues
- PART II Encouragement and protection: form and content
- 4 Legal incentives
- 5 Unilateral guarantees
- 6 Investment treaties: bilateral and multilateral
- 7 Investment insurance programmes
- 8 Assessment of compensation
- 9 Economic development agreements
- PART III Remedies
- Notes
- Select bibliography
- Index
9 - Economic development agreements
from PART II - Encouragement and protection: form and content
Published online by Cambridge University Press: 02 December 2009
- Frontmatter
- Contents
- Preface
- Preface to the first edition
- Abbreviations
- Glossary of Arabic words used
- Table of cases
- Table of statutes
- Table of treaties
- PART I Certain preliminary issues
- PART II Encouragement and protection: form and content
- 4 Legal incentives
- 5 Unilateral guarantees
- 6 Investment treaties: bilateral and multilateral
- 7 Investment insurance programmes
- 8 Assessment of compensation
- 9 Economic development agreements
- PART III Remedies
- Notes
- Select bibliography
- Index
Summary
Introduction
The investment of foreign private capital in a state may be effected by contractual arrangements in three major ways:
(a) contracts between nationals (including companies) of the host state and foreign private investors, which contracts are governed by rules of private international law;
(b) inter-state agreements, that is treaties governed by principles of public international law (see chapter 6);
(c) contracts between states and foreign private investors. It is this last type of agreement that has been the subject of extensive study by scholars. The present chapter is devoted to the legal problems pertaining to such contracts.
First, this chapter will examine the nature and functions of economic development agreements, then discuss critically and analytically their legal effect, and try to ascertain to what extent they provide protection to foreign private investments. As there is some dispute about the international rules governing economic development agreements, some attention will be given to the practicalities of the matter, besides the views of scholars, the practice of states, and decisions of international and national tribunals. The arbitration award between Turriff Construction (Sudan Ltd) and the Sudan assumes a special place in this connection.
2. Nature and functions of economic development agreements
(a) Form and characteristics
There is no established legal definition of the term ‘economic development agreement’. It is said that the term itself contains a functional description of an economic rather than a legal character.
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- Information
- Publisher: Cambridge University PressPrint publication year: 2003