International direct investment can promote sustainable economic development
The legal protection of international foreign investment states is a key tool and a very important role in ensuring sustainable economic development in the African mechanism country. This is a complex subject area of international law, especially when it comes to specific measures taken by States in national legal frameworks.
The legal, business and economic environment for FDI in the international protection of foreign investments in Southern Africa (ESA) and East and regulated at different levels, by international agreements / treaties, agreements regional and national codes or legislation. Domestication of international agreements / treaties and regional agreements into national legal systems and their implementation by individual states require specific procedures for the ratification and implementation.
. The United Nations Conference on Trade and Development (UNCTAD) investment agreements described as "the most important protection of international foreign investment" They create more rights and powers for foreign investors - particularly transnational corporations. In many African countries, the implementation of international and regional instruments is not as effective as expected. The reasons for this difference must be drawn in various structural and institutional structures inherent in national legal systems in these countries.
The subject of the survey on the state of effective judicial protection of international investments in the countries of Eastern and Southern Africa, mainly in the two regional blocs; ie, SADC and COMESA. This article is a summary of a study conducted in the region in order to identify and analyze the instruments of international law applicable in the region and the national situation in Mozambique as a specific case study of domestication and compliance international agreements.
Africa is working hard to improve their general policy framework for foreign direct investment
As part of the general policy of FDI in Africa has improved in recent years, a trend that continues in many countries not in the recent past or ongoing are not affected by the wars. However, the protective environment for foreign investment in Africa is still insufficient to attract high quality and the research framework of efficiency investments and incentives still suffers from a number of shortcomings. With increased global competition, global strategies of foreign investors seeking to maximize their competitiveness through facilities in several locations location worldwide. In this world "increasingly globalized," attract foreign investment depends on the ability to provide protection regime favorable to investment and competitive factors of production.
The first requires a stable, efficient and service-oriented investors in most economic activities without discrimination welcoming environment. Modern legal rights and intellectual property, effective competition policies, a strong judicial and bureaucratic harassment minimum are all important to attract foreign investors. These are the ultimate determinants of FDI. Competitive factors of production do not mean that unskilled labor cheap and basic infrastructure. Today adaptable skills work, sophisticated networks and flexible institutions providers are needed. Tax incentives can increase the attractiveness of a country, but if other factors are unfavorable, will be insufficient to significantly increase FDI flows.
This study argues that African countries in the Eastern and Southern region have so far made commendable efforts to reform their legal and institutional frameworks for the promotion of investment. However, they must always take into account the requirements for attracting foreign investments. In any case, as illustrated by the case of Mozambique, investment laws have been modernized. But the Center for the protection of investments should always have the authority to make investment decisions and need to be trained and given autonomy. Another issue relates to some outdated regulations that must be harmonized with the new investment plans. The legislation on land and property factors of production, labor legislation, financial procedures and other administrative barriers are the main key issues that should be streamlined to meet international standards to attract foreign investment
In their attempts to efforts to attract foreign direct and determined to benefit the most investment, the study countries have reformed their legal frameworks for better protection of foreign investments. These changes are occurring today in an environment characterized by the proliferation of investment rules at the bilateral, subregional, regional and multilateral. The resulting investment rules, many of which free trade and preferential agreements with investment components, bilateral investment treaties (BITs) and the Multilateral Agreement on Investment (MAI) are multilayered, multi facets, with a host of Bond geographical scope and coverage and scope of volunteer binding commitments. They are a complex web of obligations that partly overlap and partly complementary. This study presents a real interest in research, as it attempts to revise the proliferation of legal frameworks for the protection of international investments in southern and eastern Africa. No real need to understand the policies, mechanisms in this very sensitive area and to discuss issues that arise in the implementation of these complex frameworks.
Being conducted political strategy by many countries in Southern Africa explicitly aims to improve conditions for foreign direct investment (FDI). Over the past two decades, many countries have implemented a wide range of economic reforms, including the liberalization of domestic markets and some of privatization, which had an effect on the flow and nature of foreign investment. However, in the past, Africa has, on average, relatively little success in attracting FDI, despite large increases in global flows
However, under the policy of FDI in Africa has improved in recent years, a trend that continues in many countries that are not destroyed by the war. However, the protective environment for foreign investment in Africa is still insufficient to attract high quality and the research framework of efficiency investments and incentives still suffers from a number of shortcomings. With increased global competition, global strategies of foreign investors seeking to maximize their competitiveness through facilities in several locations location worldwide.
In this world of increasingly globalized, "attract foreign investment depends on the ability to provide protection regime favorable to investment and competitive factors of production. The first requires a stable, efficient and service-oriented, which welcomes investors in most economic activities without discrimination. modern legal rights and intellectual property, effective competition policy, a strong judiciary and minimal bureaucratic harassment are all important to attract foreign investors. They are the ultimate determinants of FDI. Factors competitive production does not just mean cheap labor and basic infrastructure.
Today adaptable skills work, sophisticated networks and flexible institutions providers are needed. Tax incentives can increase the attractiveness of a country, but if other factors are unfavorable, will be insufficient to significantly increase FDI flows.
Experience in Eastern and Southern Africa for the protection of FDI are changing rapidly
Many countries in Eastern and Southern Africa, mainly through their economic integration organizations have adopted appropriate legal environment to attract foreign investment. Legal safeguards and protections for foreign investments have generally found in the constitutions and laws on national specific investments. In a general legal framework, governments provide security for investors and title to ensure that investment in the country will not be expropriated. There are also legal guarantees for the performance of contracts, recourse to the legal systems of the repair and the results of binding arbitration. All are part of a well-established legal system, the independence and integrity are guaranteed by the Constitution.
The investment protection level is usually measured on the basis of criteria relating to: the investment level of treatment (MFN and national treatment), performance requirements, expropriation and nationalization scheme and dispute settlement laws.
The commitment to sound and consistent macroeconomic policies, constitutional guarantees against expropriation of investment and investment protection are clearly defined in the Constitution and national laws Investment and Regional Strategy Papers guidance. As developed and international development agencies countries stressed the need for democratization as a determining factor for the allocation of funds to the criterion African countries, there are new trends and strategic approaches to attract foreign funds in the context of the logic of good governance and transparency.
In general, the legal protection of foreign investment the following key questions are addressed:
(A) discrimination in the treatment of foreign investment.
requirements (b) the expropriation of foreign investment.
According to new trends in investment regimes, constitutional provisions and investment codes adopted a comprehensive legal framework for the investment policy in the countries studied. These trends can be summarized in the following significant benefits:
(I) liberal economic environment of the free market with social policy and appropriate policy framework and a pro gram;
(Ii) Adherence to the principles of democratic governance, the constitutional guarantee of the right to liberty and freedom, well-being and protection of property. In this regard, countries are constitutionally required to encourage, promote and protect the beneficial investment as a facilitator of socio-economic change and progress.
(Iii) The full integration into the global economy in general through regional member organizations and members of maps and principles and a series of bilateral trade agreements among others. These testify to these countries to solve the participation and integration into the global economy.
(Iv) The articulation of policies and strategies for a gateway to the region and the largest African development market of trade and investment.
(V) the legal and institutional framework for more open laws that support and encourage the free movement of goods and people, including modern labor laws.
However, the highlight of the above principles are most often in the newspapers that actually implemented in practice. RCF becomes a more convincing to improve national laws and policies canal.
During the lat two decades, extensive experience in many countries in Eastern and Southern Africa to the unfavorable investment environment. African countries in general, have not offered foreign investors the type of investment climate they find attractive. For several years, some African governments were very suspicious of foreign investors. In the last few years, many African countries have reformed their policies towards foreign investors. Some have also taken steps to reduce administrative barriers that are so often held long after the policies were reformed. However, the reforms have not led to an increase in foreign investment flows were expected and necessary.
Part of the explanation is that investors are often poorly informed about the changes that have occurred in countries whose investment climates were a dark time. Another part of the explanation lies in the tendency of many investors to think of Africa, or at least parts of Africa, as they face similar problems, including problems that may actually be very localized. Therefore, war, civil unrest, plans and ongoing bureaucratic obstacles and other policies inhospitable to investors from neighboring countries affect the reputation and the country is facing problems collapsed
Experience in African countries has shown that the creation of an investment-friendly environment requires finding solutions to the constraints, which include, among others:
frame or -unstable macroeconomic conditions; poor infrastructure; inadequate financial and banking systems and legal and institutional frameworks regulation and supervision;
resource mobilization mechanisms and -inadequate distribution; absence or lack of information; socio-economic problems;
political environment and social -unstable; heavy procedures and legislation, rules and regulations, etc.
-Lack Of specialized or legislation and procedures;
-skilled human resources;
-market size, debt and balance of payments problems; ineffective and inefficient institutional framework, implementation or delivery; and so on
A favorable environment for foreign investment should include:
macroeconomic environment -stable infrastructure, reliable quality, law and order; secure property rights; enforceable contracts; a functional financial system; prices determined by the market - including exchange rates and interest rates; and so on
Legal and institutional frameworks are not sufficient to ensure a flow of foreign investment in the region of Eastern and Southern Africa. Other key factors are equally important
Conclusion
In its final conclusion, the study found that more than two decades, the countries of the Eastern and Southern African region have made considerable efforts to create appropriate for the protection of legal frameworks and foreign direct investment regulations. However, there remain serious obstacles that continue to adversely affect the flow of foreign investment. Inconsistent and inadequate operational measures HCOMs host country policies and laws obsolete work are some of the challenges that require more reforms.
Furthermore concluded that there is a need for awareness among governments of the region on key issues related to the promotion and protection of investments. It can be formulated as follows: foreign investors want access to markets, have protected their investments and the freedom to operate in a manner they choose. Host countries want to develop services and infrastructure, meet local needs, the production of exportable goods and to improve the technology available locally.
The interest of foreign investors and host governments can be harmonized if the investment meets both sets of programs. This can be done if investors decide the feasibility of specific projects and host governments to decide on the sectors and priority requirements FDI in line with their economic and development goals.
As in the case of Mauritius, it should be a credible development program supported by credible political framework for economic and social stability in the long term. With these policies, countries are more likely to have the ability over time to serve the repatriation of profits, providing a skilled workforce and healthy, and to develop adequate infrastructure.
Part of this credible program should cover the investment needs and the negotiation of bilateral and multilateral agreements converged in COMESA and SADC regions to avoid trade and investment diversion and deflection. This should also go a long way towards removing administrative and fiscal barriers to investment promotion. It is also necessary for legal, regulatory and institutional frameworks appropriate to ensure that the program of work uniform and effective implementation.
The author is an international consultant for trade and investment, Director InterConsult Mozambique and the representative of Emerging Market Focus (Pty) in Mozambique. This article is part of a vision of Interconsult - joint GEF to advise investors and entrepreneurs engaged in international trade by providing accurate legal aspects of the institutional and legal framework of Mozambique and the Southern Africa region.
The legal protection of international foreign investment states is a key tool and a very important role in ensuring sustainable economic development in the African mechanism country. This is a complex subject area of international law, especially when it comes to specific measures taken by States in national legal frameworks.
The legal, business and economic environment for FDI in the international protection of foreign investments in Southern Africa (ESA) and East and regulated at different levels, by international agreements / treaties, agreements regional and national codes or legislation. Domestication of international agreements / treaties and regional agreements into national legal systems and their implementation by individual states require specific procedures for the ratification and implementation.
. The United Nations Conference on Trade and Development (UNCTAD) investment agreements described as "the most important protection of international foreign investment" They create more rights and powers for foreign investors - particularly transnational corporations. In many African countries, the implementation of international and regional instruments is not as effective as expected. The reasons for this difference must be drawn in various structural and institutional structures inherent in national legal systems in these countries.
The subject of the survey on the state of effective judicial protection of international investments in the countries of Eastern and Southern Africa, mainly in the two regional blocs; ie, SADC and COMESA. This article is a summary of a study conducted in the region in order to identify and analyze the instruments of international law applicable in the region and the national situation in Mozambique as a specific case study of domestication and compliance international agreements.
Africa is working hard to improve their general policy framework for foreign direct investment
As part of the general policy of FDI in Africa has improved in recent years, a trend that continues in many countries not in the recent past or ongoing are not affected by the wars. However, the protective environment for foreign investment in Africa is still insufficient to attract high quality and the research framework of efficiency investments and incentives still suffers from a number of shortcomings. With increased global competition, global strategies of foreign investors seeking to maximize their competitiveness through facilities in several locations location worldwide. In this world "increasingly globalized," attract foreign investment depends on the ability to provide protection regime favorable to investment and competitive factors of production.
The first requires a stable, efficient and service-oriented investors in most economic activities without discrimination welcoming environment. Modern legal rights and intellectual property, effective competition policies, a strong judicial and bureaucratic harassment minimum are all important to attract foreign investors. These are the ultimate determinants of FDI. Competitive factors of production do not mean that unskilled labor cheap and basic infrastructure. Today adaptable skills work, sophisticated networks and flexible institutions providers are needed. Tax incentives can increase the attractiveness of a country, but if other factors are unfavorable, will be insufficient to significantly increase FDI flows.
This study argues that African countries in the Eastern and Southern region have so far made commendable efforts to reform their legal and institutional frameworks for the promotion of investment. However, they must always take into account the requirements for attracting foreign investments. In any case, as illustrated by the case of Mozambique, investment laws have been modernized. But the Center for the protection of investments should always have the authority to make investment decisions and need to be trained and given autonomy. Another issue relates to some outdated regulations that must be harmonized with the new investment plans. The legislation on land and property factors of production, labor legislation, financial procedures and other administrative barriers are the main key issues that should be streamlined to meet international standards to attract foreign investment
In their attempts to efforts to attract foreign direct and determined to benefit the most investment, the study countries have reformed their legal frameworks for better protection of foreign investments. These changes are occurring today in an environment characterized by the proliferation of investment rules at the bilateral, subregional, regional and multilateral. The resulting investment rules, many of which free trade and preferential agreements with investment components, bilateral investment treaties (BITs) and the Multilateral Agreement on Investment (MAI) are multilayered, multi facets, with a host of Bond geographical scope and coverage and scope of volunteer binding commitments. They are a complex web of obligations that partly overlap and partly complementary. This study presents a real interest in research, as it attempts to revise the proliferation of legal frameworks for the protection of international investments in southern and eastern Africa. No real need to understand the policies, mechanisms in this very sensitive area and to discuss issues that arise in the implementation of these complex frameworks.
Being conducted political strategy by many countries in Southern Africa explicitly aims to improve conditions for foreign direct investment (FDI). Over the past two decades, many countries have implemented a wide range of economic reforms, including the liberalization of domestic markets and some of privatization, which had an effect on the flow and nature of foreign investment. However, in the past, Africa has, on average, relatively little success in attracting FDI, despite large increases in global flows
However, under the policy of FDI in Africa has improved in recent years, a trend that continues in many countries that are not destroyed by the war. However, the protective environment for foreign investment in Africa is still insufficient to attract high quality and the research framework of efficiency investments and incentives still suffers from a number of shortcomings. With increased global competition, global strategies of foreign investors seeking to maximize their competitiveness through facilities in several locations location worldwide.
In this world of increasingly globalized, "attract foreign investment depends on the ability to provide protection regime favorable to investment and competitive factors of production. The first requires a stable, efficient and service-oriented, which welcomes investors in most economic activities without discrimination. modern legal rights and intellectual property, effective competition policy, a strong judiciary and minimal bureaucratic harassment are all important to attract foreign investors. They are the ultimate determinants of FDI. Factors competitive production does not just mean cheap labor and basic infrastructure.
Today adaptable skills work, sophisticated networks and flexible institutions providers are needed. Tax incentives can increase the attractiveness of a country, but if other factors are unfavorable, will be insufficient to significantly increase FDI flows.
Experience in Eastern and Southern Africa for the protection of FDI are changing rapidly
Many countries in Eastern and Southern Africa, mainly through their economic integration organizations have adopted appropriate legal environment to attract foreign investment. Legal safeguards and protections for foreign investments have generally found in the constitutions and laws on national specific investments. In a general legal framework, governments provide security for investors and title to ensure that investment in the country will not be expropriated. There are also legal guarantees for the performance of contracts, recourse to the legal systems of the repair and the results of binding arbitration. All are part of a well-established legal system, the independence and integrity are guaranteed by the Constitution.
The investment protection level is usually measured on the basis of criteria relating to: the investment level of treatment (MFN and national treatment), performance requirements, expropriation and nationalization scheme and dispute settlement laws.
The commitment to sound and consistent macroeconomic policies, constitutional guarantees against expropriation of investment and investment protection are clearly defined in the Constitution and national laws Investment and Regional Strategy Papers guidance. As developed and international development agencies countries stressed the need for democratization as a determining factor for the allocation of funds to the criterion African countries, there are new trends and strategic approaches to attract foreign funds in the context of the logic of good governance and transparency.
In general, the legal protection of foreign investment the following key questions are addressed:
(A) discrimination in the treatment of foreign investment.
requirements (b) the expropriation of foreign investment.
According to new trends in investment regimes, constitutional provisions and investment codes adopted a comprehensive legal framework for the investment policy in the countries studied. These trends can be summarized in the following significant benefits:
(I) liberal economic environment of the free market with social policy and appropriate policy framework and a pro gram;
(Ii) Adherence to the principles of democratic governance, the constitutional guarantee of the right to liberty and freedom, well-being and protection of property. In this regard, countries are constitutionally required to encourage, promote and protect the beneficial investment as a facilitator of socio-economic change and progress.
(Iii) The full integration into the global economy in general through regional member organizations and members of maps and principles and a series of bilateral trade agreements among others. These testify to these countries to solve the participation and integration into the global economy.
(Iv) The articulation of policies and strategies for a gateway to the region and the largest African development market of trade and investment.
(V) the legal and institutional framework for more open laws that support and encourage the free movement of goods and people, including modern labor laws.
However, the highlight of the above principles are most often in the newspapers that actually implemented in practice. RCF becomes a more convincing to improve national laws and policies canal.
During the lat two decades, extensive experience in many countries in Eastern and Southern Africa to the unfavorable investment environment. African countries in general, have not offered foreign investors the type of investment climate they find attractive. For several years, some African governments were very suspicious of foreign investors. In the last few years, many African countries have reformed their policies towards foreign investors. Some have also taken steps to reduce administrative barriers that are so often held long after the policies were reformed. However, the reforms have not led to an increase in foreign investment flows were expected and necessary.
Part of the explanation is that investors are often poorly informed about the changes that have occurred in countries whose investment climates were a dark time. Another part of the explanation lies in the tendency of many investors to think of Africa, or at least parts of Africa, as they face similar problems, including problems that may actually be very localized. Therefore, war, civil unrest, plans and ongoing bureaucratic obstacles and other policies inhospitable to investors from neighboring countries affect the reputation and the country is facing problems collapsed
Experience in African countries has shown that the creation of an investment-friendly environment requires finding solutions to the constraints, which include, among others:
frame or -unstable macroeconomic conditions; poor infrastructure; inadequate financial and banking systems and legal and institutional frameworks regulation and supervision;
resource mobilization mechanisms and -inadequate distribution; absence or lack of information; socio-economic problems;
political environment and social -unstable; heavy procedures and legislation, rules and regulations, etc.
-Lack Of specialized or legislation and procedures;
-skilled human resources;
-market size, debt and balance of payments problems; ineffective and inefficient institutional framework, implementation or delivery; and so on
A favorable environment for foreign investment should include:
macroeconomic environment -stable infrastructure, reliable quality, law and order; secure property rights; enforceable contracts; a functional financial system; prices determined by the market - including exchange rates and interest rates; and so on
Legal and institutional frameworks are not sufficient to ensure a flow of foreign investment in the region of Eastern and Southern Africa. Other key factors are equally important
Conclusion
In its final conclusion, the study found that more than two decades, the countries of the Eastern and Southern African region have made considerable efforts to create appropriate for the protection of legal frameworks and foreign direct investment regulations. However, there remain serious obstacles that continue to adversely affect the flow of foreign investment. Inconsistent and inadequate operational measures HCOMs host country policies and laws obsolete work are some of the challenges that require more reforms.
Furthermore concluded that there is a need for awareness among governments of the region on key issues related to the promotion and protection of investments. It can be formulated as follows: foreign investors want access to markets, have protected their investments and the freedom to operate in a manner they choose. Host countries want to develop services and infrastructure, meet local needs, the production of exportable goods and to improve the technology available locally.
The interest of foreign investors and host governments can be harmonized if the investment meets both sets of programs. This can be done if investors decide the feasibility of specific projects and host governments to decide on the sectors and priority requirements FDI in line with their economic and development goals.
As in the case of Mauritius, it should be a credible development program supported by credible political framework for economic and social stability in the long term. With these policies, countries are more likely to have the ability over time to serve the repatriation of profits, providing a skilled workforce and healthy, and to develop adequate infrastructure.
Part of this credible program should cover the investment needs and the negotiation of bilateral and multilateral agreements converged in COMESA and SADC regions to avoid trade and investment diversion and deflection. This should also go a long way towards removing administrative and fiscal barriers to investment promotion. It is also necessary for legal, regulatory and institutional frameworks appropriate to ensure that the program of work uniform and effective implementation.
The author is an international consultant for trade and investment, Director InterConsult Mozambique and the representative of Emerging Market Focus (Pty) in Mozambique. This article is part of a vision of Interconsult - joint GEF to advise investors and entrepreneurs engaged in international trade by providing accurate legal aspects of the institutional and legal framework of Mozambique and the Southern Africa region.
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