Print

Print


*Karl P. Sauvant, PhD*
*Resident Senior Fellow*
*Columbia Center on Sustainable Investment*
Columbia Law School - The Earth Institute, Columbia University
435 West 116th St., Rm. JGH 825, New York, NY 10027
| p: (212) 854 0689 | cell: (646) 724 5600 e: [log in to unmask]
| w: www.ccsi.columbia.edu | t: @CCSI_Columbia
<https://twitter.com/CCSI_Columbia>


"International Investment Facilitation: By Whom and for What?", "Moving the
G20's Investment Agenda Forward", "Emerging Markets and the International
Investment Law and Policy Regime", "Sustainable FDI for Sustainable
Development", "Towards an Investment Facilitation Framework: Why? What?
When?", "Beware of FDI Statistics!", "Towards an Indicative List of FDI
Sustainability Characteristics", “The Importance of Negotiating Good
Contracts", "A New Challenge for Emerging Markets: the Need to Develop an
Outward FDI Policy”, "China Moves the G20 toward an International
Investment Framework and Investment Facilitation", "The Next Step in
Governance: The Need for Global Micro-regulatory Frameworks", and "The
Evolving International Investment Law and Policy Regime: Ways Forward"
*are* available
at https://ssrn.com/author=2461782 and
http://www.works.bepress.com/karl_sauvant/.




View this email in your browser
<https://mailchi.mp/law/perspective-232?e=dd153d6a25>

哥伦比亚大学国际直接投资展望中文版都可以在我们的网站查看:http://ccsi.columbia.edu/
publications/columbia-fdi-perspectives.
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=3ce2c4a3f7&e=dd153d6a25>
*Columbia FDI Perspectives*
Perspectives on topical foreign direct investment issues
No. 232  August 13, 2018
Editor-in-Chief: Karl P. Sauvant ([log in to unmask])
Managing Editor: Marion A. Creach ([log in to unmask])
*Investment facilitation: Another fad in the offing?*
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=4a3693bfbc&e=dd153d6a25>
*** <#m_-9123366261592302268__edn1>
by
Kavaljit Singh** <#m_-9123366261592302268__edn2>

While nearly 90 members did not support discussions on investment
facilitation at the WTO’s Eleventh Ministerial Conference held in Buenos
Aires in December 2017, a group of 70 members decided to launch a
plurilateral initiative.

Broadly speaking, investment facilitation refers to measures aimed at
helping investors to start, operate and exit their businesses. Aimed at
removing ground-level obstacles, it seeks to enhance the investment
environment by improving transparency and predictability of investment
policies, streamlining administrative procedures and adopting tools to
handle inquiries or complaints by investors. Such measures are often seen
as a means to attract FDI and maximize its contribution to development.

Notwithstanding that investment facilitation is on the WTO’s agenda, most
members have been, and are, unilaterally implementing a wide range of
investment-facilitation measures at the national and sub-national levels,
as per their administrative structures. They are being assisted by several
multilateral organizations, which do not impose legally binding commitments
on countries seeking support. Also, Brazil, Russia, India, China, and South
Africa have developed a common, non-binding framework
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=fda1c55813&e=dd153d6a25>
for investment facilitation, thereby giving autonomy to members to decide
what policies and tools to adopt.

Moreover, investors face most administrative impediments at sub-national
levels, especially during the implementation of investment projects,
including when seeking approvals from authorities before construction and
complying with existing laws during construction and operation. Developing
a “bottom-up” approach to address administrative procedures at local levels
is a better option than implementing “top-down” multilateral binding rules.

Can a single window system for investors provide similar benefits as in the
case of trade facilitation? Unlike trade facilitation (which involves few
departments dealing with cross-border trade and customs compliance),
investment facilitation requires the cooperation of many departments at all
levels of government and, therefore, raises critical challenges in the
implementation process. In practical terms, one-stop shops may not be
effective in countries where setting up a business requires approvals from
national, regional and local authorities that may not cooperate in
implementing binding commitments under a multilateral agreement.

In India, for instance, an investor has to deal with different authorities
for building permits, health and safety-related approvals, environmental
clearance, and licenses from regulatory agencies, depending on the nature
of business. Since land is principally a state subject under India’s
constitution, a single window system established is unlikely to work and
may rather become a one-more stop. In many areas, state governments and
local authorities in India often fall short in implementing national policy
frameworks due to financial and human resource constraints. In such a
setting, it is far-fetched to expect full, timely and consistent
implementation of multilateral rules by these entities.

Also, a national focal point is envisaged as another important tool. The
draft text of Brazil’s investment-facilitation agreement provides for the
establishment of national focal points in each WTO member, with vast
responsibilities that include operating a single window system, providing
investors with all information related to domestic laws and policies,
improving the communication between investors and governments, clarifying
doubts on investment policies and other regulatory issues, addressing
complaints by investors, taking timely action to prevent, manage and
resolve disputes, and preventing disputes among members.

In countries with federal governments like India, national focal points may
not be able to perform such wide-ranging tasks without encroaching upon the
functional autonomy of regional governments and local government
authorities. In an era of decentralization, is it desirable to have a
single authority perform all the tasks outlined above?

Furthermore, the legally binding commitments on investment facilitation
under the WTO and their enforcement through the Dispute Settlement Body
could restrict members’ policy space to choose the tools that are
consistent with their peculiar administrative structures.

No one denies, for instance, that transparency is the basis of good
governance; but countries may be reluctant to give up policy space when
exploring binding commitments on it. The transparency of investment
policies could be promoted through policy advice, technical assistance and
consensus-building endeavors. It is also a concern that transparency and
notification requirements may add to an already onerous administrative
burden on members, besides encroaching on the realm of domestic
policy-making.

In the present context, multilateral efforts on investment facilitation
should rather be directed at developing best practices and soft laws (e.g.,
voluntary codes of conduct). A binding system of commitments under the WTO
is still far away. In fact, it remains uncertain whether the WTO’s current
negotiating mandate allows it to deal with investment facilitation.

Finally, investment facilitation is just one instrument to attract
investment—and it is by far not as important as countries’ economic
determinants. Many states in India have established single window systems
and streamlined administrative procedures, yet such measures have not
always resulted in increased investment. While the debate on the
effectiveness of investment promotion agencies is far from settled, let us
not raise unrealistic expectations that investment-facilitation rules would
strengthen sustainable investment flows and help achieve the 2030 Agenda
for Sustainable Development.

The proponents of an investment-facilitation agreement should make more
persuasive arguments, drawing on robust evidence, to convince those who are
skeptical about the value of such an agreement.

------------------------------
* <#m_-9123366261592302268__ednref1> *The Columbia FDI Perspectives are a
forum for public debate. The views expressed by the author(s) do not
reflect the opinions of CCSI or Columbia University or our partners and
supporters. Columbia FDI Perspectives (ISSN 2158-3579) is a peer-reviewed
series.*
** <#m_-9123366261592302268__ednref2> Kavaljit Singh (
[log in to unmask]) is Director of Madhyam
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=09d50addf2&e=dd153d6a25>,
a public policy research institute, based in New Delhi, India. The author
is grateful to Xavier Carim, Brooke Guven and Hamid Mamdouh for their
helpful peer reviews.
*The material in this Perspective may be reprinted if accompanied by the
following acknowledgment: “Kavaljit Singh, ‘Investment facilitation:
Another fad in the offing?’ Columbia FDI Perspectives, No. 232, August 13,
2018. Reprinted with permission from the Columbia Center on Sustainable
Investment (**www.ccsi.columbia.edu*
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=d8951ff250&e=dd153d6a25>*).”
A copy should kindly be sent to the Columbia Center on Sustainable
Investment at **[log in to unmask]* <[log in to unmask]>*. *

For further information, including information regarding submission to the
*Perspectives*, please contact: Columbia Center on Sustainable Investment,
Marion A. Creach, [log in to unmask]

*Most recent Columbia FDI Perspectives*
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=acc2046bed&e=dd153d6a25>

   - No. 231, Theodore H. Moran, “CFIUS reforms must be reformed,” July 30,
   2018
   - No. 230, Carlos A. Primo Braga, “Foreign direct investment and ‘peak
   globalization’,” July 16, 2018
   - No. 229, John Gaffney, “Could BITs and BATs be combined to ensure
   access to human rights remedies?” July 2, 2018

*All previous FDI Perspectives are available at *
*http://ccsi.columbia.edu/publications/columbia-fdi-perspectives/*
<https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=b2a7f3928f&e=dd153d6a25>
*. *

*Other relevant CCSI news and announcements*

   - *On September 27-28, 2018*, CCSI will hold its 13th Annual Columbia
   International Investment Conference (CIIC) on “Rethinking International
   Investment Governance: Principles for the 21st Century.” This conference
   seeks to elaborate principles of a progressive investment agenda. It will
   reflect on the current investment regime – of the network of over 3,000
   investment agreements – and the extent to which the regime aligns with or
   undermines the principles. We will then re-imagine investment governance,
   and consider the role that international cooperation could play to advance
   sustainable, development-oriented investment. *Registration is free but
   required...for more information, and to register, please visit our
   website here
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=10aba04143&e=dd153d6a25>.*
   - *On September 26, 2018*, CCSI and the UN Sustainable Development
   Solutions Network (SDSN), under the guidance of Prof. Jeffrey Sachs,
   Special Advisor to the UN Secretary-General on the SDGs, and
   Laurent Fabius, President of the Constitutional Council of the French
   Republic, will host a conference to discuss the Global Pact for the
   Environment
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=d3a920ce76&e=dd153d6a25>.
   The Global Pact for the Environment aims to unify international
   environmental governance and codify a human right to the environment in
   international law. *For more information, and to register, please see
   our website here
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=f9d714e433&e=dd153d6a25>.*
   - *On September 26, 2018*, CCSI and the Sabin Center for Climate Change
   Law will host a conference on "Climate Change, the Courts, and the Paris
   Agreement." In recent years citizens, sub-national governments and NGOs
   have turned to litigation to hold governments and corporations accountable
   for their contributions to climate change. *For more information about
   this event, including registration, please see our website here
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=8db3b6ec42&e=dd153d6a25>.*
   - *On September 24, 2018*, CCSI, the UN Sustainable Development
   Solutions Network’s Thematic Network on Good Governance of Extractive and
   Land Resources (“SDSN Thematic Network”), and other partners will host
   "Renewable Energy and the SDGs: Exploring Links with Extractives,
   Agriculture, and Land Use." *For more information, please see our
   website here
   <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=356153cc27&e=dd153d6a25>.
If
   interested in attending, contact [log in to unmask]
   <[log in to unmask]>.*

Karl P. Sauvant, Ph.D.
Resident Senior Fellow
Columbia Center on Sustainable Investment
Columbia Law School - Earth Institute
Ph: (212) 854-0689
Fax: (212) 854-7946
*Copyright © 2018 Columbia Center on Sustainable Investment (CCSI), All
rights reserved.*
[log in to unmask]

*Our mailing address is:*
Columbia Center on Sustainable Investment (CCSI)
Columbia Law School - Earth Institute, Columbia University
435 West 116th Street
<https://maps.google.com/?q=435+West+116th+Street+New+York+,++NY+10027&entry=gmail&source=g>
New York
<https://maps.google.com/?q=435+West+116th+Street+New+York+,++NY+10027&entry=gmail&source=g>,
<https://maps.google.com/?q=435+West+116th+Street+New+York+,++NY+10027&entry=gmail&source=g>
NY
<https://maps.google.com/?q=435+West+116th+Street+New+York+,++NY+10027&entry=gmail&source=g>
10027
<https://maps.google.com/?q=435+West+116th+Street+New+York+,++NY+10027&entry=gmail&source=g>

Add us to your address book
<//columbia.us6.list-manage.com/vcard?u=ab15cc1d53&id=a61bf1d34a>


unsubscribe from this list
<https://columbia.us6.list-manage.com/unsubscribe?u=ab15cc1d53&id=a61bf1d34a&e=dd153d6a25&c=143c308779>
update subscription preferences
<https://columbia.us6.list-manage.com/profile?u=ab15cc1d53&id=a61bf1d34a&e=dd153d6a25>


[image: Email Marketing Powered by MailChimp]
<http://www.mailchimp.com/monkey-rewards/?utm_source=freemium_newsletter&utm_medium=email&utm_campaign=monkey_rewards&aid=ab15cc1d53&afl=1>

____
AIB-L is brought to you by the Academy of International Business.
For information: http://aib.msu.edu/community/aib-l.asp
To post message: [log in to unmask]
For assistance:  [log in to unmask]
AIB-L is a moderated list.