The Existing Status of Bilateral Investment Treaties in Ethiopia: Issues and Trends
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Date
2011-10
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Addis Ababa University
Abstract
In the world we are living in, investment is a proper route to economic prosperity. Here, we have
to discern the fact that this mainly implies foreign investment, and different countries endeavor
to attract this kind of investment. Accordingly, there is a fruitful proliferation of foreign direct
investment that presupposes well regulatory system which at the same time insures both
investment liberalization and protection.
During the past few decades, many developing countries have begun to sign bilateral investment
treaties (BITs) in an attempt to attract greater levels of foreign direct investment (FDI). By
signing BITs, investment-seeking governments are thought to more credibly commit to
protecting whatever FDI they receive, which in turn should lead to increased confidence among
investors and ultimately greater FDI inflows. The writer finds that whether BITs increase FDI
depends upon whether a government develops a reputation for actually upholding its BIT
commitments.
For achieving those in an effective and efficient manner, nations of the world are entering into
bilateral investment treaties (BITs) in which this study tries to explore by giving a due emphasis
on Ethiopia. Currently, Ethiopia has entered into about 30 BITs with different countries, and it is
the writer’s contention that they will support the country’s efforts in attracting foreign
investment especially from those she has already entered that kind of treaty. They will have their
own role for the development of the country if well regulated.
The basic purpose of this research is to analyze the trends and issues regarding BITs, and dispute
settlement under Ethiopian law. The main issues of the research are how to appreciate the effects
of BITs issues and trends. The research methods include review of literature and legal analysis.
Primary and secondary sources were consulted in the research. Interview has been conducted in
data collection.
The research findings reveal that bilateral investment treaties are not as such effectively
implemented in Ethiopia and it is recommended that we should develop our capacity.
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Keywords
Bilateral Investment,foreign investment