The chapter explores the interrelationship between foreign direct investment (FDI), international investment agreements (IIAs) and the sustainable development goals (SDGs) on a foundational level. The SDGs are more and more used to inform the reform of international investment law in a way that FDI should aim at harnessing sustainable development. Therefore, the chapter first explains the basic concepts with a focus on positive and negative effects of FDI on sustainable development. The chapter examines those issues by focusing on the connections between FDI and certain SDGs. Therefore, the chapter provides a brief overview of the SDGs and offers a preliminary discussion of how IIAs might affect FDI’s contributions to specific SDGs, focusing on SDGs 1, 6, 7, 9, and 13. After examining those specific SDGs, this chapter offers some more general thoughts on how the scope of investment treaties reflect and are relevant to sustainable development.
Jesse Coleman, Kaitlin Y. Cordes and Lise Johnson
In its current form, the international investment treaty regime may stymie the business and human rights agenda in various ways. The regime may incentivize governments to favour the protection of investors over the realization of human rights. Investment treaty standards enforced through investor–state arbitration risk adversely affecting access to justice for project-affected rights holders. More broadly, the regime contributes to a system of global economic governance that elevates and rewards investors’ actions and expectations, irrespective of whether they have adhered to their responsibilities to respect human rights. Without comprehensive reform, investment treaties and investor–state arbitration will continue to interfere with the realization of human rights and broader public interest objectives. This chapter provides an overview of the interaction between international human rights law and the investment treaty regime. It highlights the challenges that arise from tension between human rights and investment norms, including the impact of the investment regime on the ability of host states to regulate and on access to justice for investment-affected rights holders. The chapter also explores whether and how human rights issues have been addressed by the investment regime to date, highlighting developments in treaty drafting practice and responses to human rights argumentation by investment tribunals. It notes the shortcomings of current approaches, and concludes by briefly setting out some options for reform.