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Relationship between Investment Contracts and Human Rights: A Developing Countries’ Perspective

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Chapter Summary

This chapter addresses the relationship between investment law and human rights law. A State uses the investment contract as a legal arrangement with foreign investors to explore its natural resources, develop infrastructure, acquire new technology, and obtain managerial know-how. The human rights issue in relation to investment contracts has two aspects: internal and external. Internal aspect refers to how human rights can be integrated within the contractual framework. External aspect suggests that the process of negotiation of contract should clearly reflect the key human rights values such as public participation and transparency in contract negotiation and contractual terms and conditions. Concerns for human rights in relation to investment contracts are articulated in two ways: first, potential negative impact of operation of investment projects on host community. Second, potential implications of investment protection mechanisms included in investments contracts on the host government's ability to regulate on human rights and social issues.

Keywords: foreign investors; human rights law; investment contracts; investment law; investment projects; investment protection mechanisms



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