International investment agreement and sustainable development: future pathways
2012
The relationship between foreign direct investment (FDI) and sustainable development can be described
as ‘dual-natured’. On the one hand, the activity of Transnational Corporations (TNCs) can, and
often does, promote certain aspects of sustainable development. On the other hand, it has been argued
by many that TNCs’ activities can also frustrate sustainable development goals. Moreover, ignoring
sustainable development issues can be bad for business. Therefore, there is much to gain by the integration of sustainable development and FDI policies. This chapter reviews the procedural and substantive
dimensions of international investment agreements and the tools available to integrate sustainable
development goals within them, as well as the challenges faced by policy-makers in this fi eld.
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