Foreign Direct Investment or FDI appears as a complex mechanism in which numerous and evolving issues are at stake. The first source of complexity lies in the numerous interests that may be pursued by the different actors involved. As the authors underline, the convergence of these interests is often very important at the beginning of a given process of FDI, but they are definitely diminishing over time. In that sense, the adequate management of time is essential for the successful implementation of an FDI operation. In other words, the dealing with the evolving nature of FDI seems to be one of its greatest challenges. This article describes FDI as a process composed of different stages, all of which have different implications and require different approaches to solve them.
[...] In FDI process, parties should ensure that most benefits would not be going to the foreign investor but that the investment would also help to an effective economic development of the host country. In that sense, FDI should be regarded as a give and take relationship. Nevertheless, finding an adequate balance between the protection of the investor's rights (example of the legal certainty issue) and the host country's interests and sovereign rights is very delicate and requires both parties to cooperate in good faith. [...]
[...] In the same way, Kuruk describes in his paper how the agreement entered between Ghana and the Volta Aluminium Company (VAC) progressively became unbalanced and therefore prevented Ghana, before its renegotiation, to fully take advantage of its benefits. All authors insisted on the fact that the relation of dependence that is inherent to investment agreements must evolve towards a relation based on cooperation sharing the control of companies). Indeed, cooperation would lead to diminish restraints on sovereignty and reduce the political tensions that are one of the characteristics of FDI. [...]
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