Research Handbook on Foreign Direct Investment
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Research Handbook on Foreign Direct Investment

Edited by Markus Krajewski and Rhea T. Hoffmann

Increasing international investment, the proliferation of international investment agreements, domestic legislation, and investor-State contracts have contributed to the development of a new field of international law that defines obligations between host states and foreign investors with investor-State dispute settlement. This involves not only vast sums, but also a panoply of rights, duties, and shifting objectives at the juncture of national and international law and policy. This engaging Research Handbook provides an authoritative account of these diverse investment law issues.
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Chapter 4: FDI, international investment agreements and the sustainable development goals

Lise Johnson

Abstract

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.

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