|
Geneva, July 17: : In a move aimed at replacing the role of private arbitrators, the Society of International Law has proposed setting up of an international investment court to resolve sensitive disputes between governments and global investors related to foreign direct investment.
Arbitrators have the power under international treaties to award very large amount of public money to foreign companies, money that could be spent on education, health, or other programmes.
The court would replace the role of private arbitrators under existing investment treaties which harms interests of developing countries, Canadian law Professor Gus Van Harten, the architect of the proposal said in Geneva
Many developing countries, including India, have been hit so far -- remember the Dhabol Power Company plant controversy, perhaps the largest FDI in India, a deal with US energy giant ENRON to buy power from the DPC plant at Ratnagiri in Maharashtra, that led to heavy losses of Maharashtra State Electricity Board.
Arbitration is simply not appropriate for the resolution of these disputes in the public realm. The arbitrations are in some cases kept secret, so the people of the country are kept in the dark about how their governments have been disciplined by arbitrators.
Arbitration under investment treaties is also structured to favour the investor interest. It does not satisfy basic principles of independence in public law.
Only investors bring the claims under the treaties, so arbitrators may be suspected of deciding the law in favour of investors so as to encourage more claims, and make business for themselves, Van Harten said.
More from BANKING & FINANCE
Discuss this story on expressindia forums
|
|
 |
 |
 |
About Us | Contact Us | Advertisers | Site Map | Make us your homepage | Work for Us | RSS | Subscribe | Electronic Edition | Privacy Policy© 2009: The Indian Express Limited. All rights reserved throughout the world
