The Importance Of Global Governance

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As already mentioned, due to the increasing economisation of the international system, Investments have been gaining importance not just from an economic point of view, but also from a global governance perception. Investors are global influencers and therefore shall be included in global governance and attributed a share of responsibility in global issues. As already claimed in the introduction to this essay global “governance is thought to be an international process of consensus-forming which generates guidelines and agreements that affect national governments and international corporations…” (WHO, 2015). Following this, we may consider that investor-State disputes effects relate to both governments and investors, but also to the global…show more content…
In this special case, governance would refer to the different ways in which investors and States resolve their disputes based on their interconnection to global affairs. Companies are profit makers; their objective is to gain as much revenue as possible from their interactions with other actors including the State. In this relation, the most is the better. This in most of the cases goes far beyond governmental priorities, above the law and above the life and well-being of thousands of citizens. The latter, mostly happens when the investments are made in underdeveloped and developing nations, in which the taxation costs coming from an arbitral award resulting from ISDS mechanism may generate social and economic chaos. Companies are also the principal contributor to global problems; such as global warming and social inequality. On view of this, it is clear that companies are playing a big and important role on creating global problems, and should be included on the global decision making…show more content…
According to the OECD (2012) this mechanisms was thought to include solutions to violence, improper political lobbying and corruption, and because it allows for an international review of the State, it was also thought to serve as a motivation to ameliorate internal institutions. Besides, ISDS makes it easier for host governments to attract international investments providing them with a guarantee of minimum treatment to their businesses abroad (OECD, 2012). Even though, the avobe was clearly understood in the beggingins of the ISDS system. The investor-State scenary has evolved over the years. Allowing for a gap in the investor´s relation to global

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