INTEGRATING SUSTAINABLE DEVELOPMENT GOALS INTO MODEL BILATERAL INVESTMENT TREATIES

Апстракт

In today’s globalized economy, foreign direct investment (FDI) is a key component of
national development strategies. The proliferation of multinational enterprises has led to an
increase in foreign-controlled or influenced trading firms, often causing FDI to be
overshadowed by portfolio investments. Nevertheless, FDIs contribute far more than financial
resources, they often introduce cutting-edge technology, advanced management skills,
innovation, and integration into international markets, which together drive more inclusive and
sustainable economic growth in the host country. Three primary factors determine a country’s
attractiveness to foreign investors. First, favorable macroeconomic conditions, such as robust
economic performance naturally draw investor interest. Second, a stable political landscape
reassures investors, encouraging long-term commitments. Third, legal predictability and a
transparent regulatory framework are critical to building investor trust and ensuring
consistency. In this regard, FDI becomes a fundamental engine of progress, delivering not just
capital, but also vital knowledge, infrastructure, and employment opportunities. Techlogy
transfer, within this setting, involves the sharing or adoption of scientific knowledge and
production methods across organizations, sectors, or nations. This transfer occurs through
channels such as foreign investments, international trade, patent agreements, technical training,
and advisory services. This paper examines the role of sustainable development as facilitated
by the latest generation of Bilateral Investment Treaties (BITs), and their potential to advance
sustainable development in an increasingly interconnected global market. These modern BITs
are crafted to encourage FDI from capital-abundant, high-tech economies, often OECD
countries, into developing regions. By offering legal guarantees and reducing investment risks,
these treaties aim to stimulate the movement of funds, technologies, and know-how from
advanced economies to those still on the path of development.