Introduction: Political Risk and Overview

eds., Reports of Overseas Private Investment Corporation Determinations (New York: Oxford University Press, 2011), vol. 1, pp. xiii-xlix

18 Pages Posted: 1 Aug 2018

See all articles by Mark Kantor

Mark Kantor

Independent

Michael D. Nolan

Milbank, Tweed, Hadley & McCloy

Karl P. Sauvant

Columbia University - Columbia Center on Sustainable Investment

Date Written: 2011

Abstract

The rise of FDI is accompanied by an increasingly stronger international investment regime, enforced by an investor-state dispute settlement mechanism. Still, MNEs are becoming increasingly concerned about political risk in host countries. Governments and some multilateral organizations offer tools to mitigate risk such as political risk insurance. For example, the United States Overseas Private Investment Corporation (OPIC) protects against most significant types of events: (i) inconvertibility of funds; (ii) expropriation; (ii) political violence; (iv) losses caused by material changes in project agreements unilaterally imposed by the host state; and (v) terrorism. Understanding OPIC’s claims determinations is of value to outward investors seeking OPIC insurance, negotiators of investment agreements and to investment arbitration tribunals deciding investment treaty disputes. Furthermore, a rising awareness of political risk may lead to a closer analysis of the relationship between investor arbitration, investment agreements and investment insurance in the frame of investment arbitrations and in the negotiation of investments themselves.

Suggested Citation

Kantor, Mark and Nolan, Michael D. and Sauvant, Karl P., Introduction: Political Risk and Overview (2011). eds., Reports of Overseas Private Investment Corporation Determinations (New York: Oxford University Press, 2011), vol. 1, pp. xiii-xlix, Available at SSRN: https://ssrn.com/abstract=3209197

Mark Kantor

Independent ( email )

Michael D. Nolan

Milbank, Tweed, Hadley & McCloy ( email )

United States

Karl P. Sauvant (Contact Author)

Columbia University - Columbia Center on Sustainable Investment ( email )

Columbia Law School
435 W 116th Street
New York, NY 10027
United States

HOME PAGE: http://https://works.bepress.com/karl_sauvant/388/

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