| Nowadays, as the world economy roaring, the foreign investment flows across countries and regions,which plays an increasingly important role in global economic integration. International community has formed a broad consensus on sustainable developments; the role of private foreign investments in the implementation of the sustainable development agenda is immensely important. However, along with the increase of the economic aggregate, international investment also caused a series of problems, which raised great concern in the international community. Since the introduction of foreign capital, the environment of the host country has been destroyed; other public interest, such as human rights and public health, cannot be guaranteed. People no longer blindly worship the "quantity" of economic growth; they focus more on the "quality" of the increase. Here the "quality" is sustainable development.From a philosophical point of view, the growth of international investment and sustainable development are mutually reinforcing and unity of opposites. Foreign Direct Investment is crucially important in promoting global economic development, eradicating poverty and improving people’s livelihood. No investment, no fast development in international community. From this perspective, these two aspects are unified. Conversely, environmental and social problems caused by investment have attracted widespread attention. For the survival and development of the human society, it is needed to find a way that makes coordination between economic, social development and environmental protection; a way that development meets the needs of the present without compromising the ability of future generations to meet their own needs. However, in present situation, international investment treaties will continue to promote and protect investment as its main purpose, without paying attention to sustainable development. From this perspective, the growth of international investment and sustainable development are in conflict.The term of sustainable development was firstly introduced in Our Common Future,which also known as the Brundtland Report, published in 1987. Since then, various international organizations concerning international investment have attempted to promote the formulation of sustainable development and have achieved some outcomes. In 1992, the United Nations Conference on Environment and Development published Rio Declaration, which extended the context of sustainable development, took into account poverty reduction and economic development in the developing countries. The interpretation of the concept of sustainable development in Rio Declaration reflects the balance between industrialized countries and poor countries. The World Summit on Sustainable Development of the United Nations in 2002 proposed the implementation of a planned reduction in poverty, changing unsustainable patterns of production and consumption, protecting and managing natural resources. Environmental policy assessment report, which published by Organization for Economic Co-operation and Development(OECD), assesses the environmental policies of developing countries and makes recommendations, and therefore, also contributes to sustainable development. The United Nations Conference on Trade Development(UNCTAD) has made research on transnational corporation and investment policies for a long term. UNCTAD publishes World Investment Report annually, concerning international investment issues. In 2014, it released World Investment Report with the title "Investing in the SDGs: An Action Plan". The preface of the report stated: “This year’s World Investment Report offers a global action plan for galvanizing the role of businesses in achieving future sustainable development goals, and enhancing the private sector’s positive economic, social and environmental impacts. ”With the perspective of sustainable development, when re-examining the provisions of the existing international investment treaty and investment arbitration practice, it is not difficult to find: the purposes of investment treaties are to protect and promote investment. In detail, the terms of fair and equitable treatment standard, expropriation and non-discriminatory treatmentare all mean to protect investment, ignoring the consideration of the public interest, such as environmental protection and human rights. In investment arbitration, the arbitral tribunals often make broad interpretation of the terms, which makes a departure from the principles of sustainable development. To take advantage of the international investment legal framework to ensure sustainable development, it is necessary to reconsider to formulate the international investment treaties and investment arbitration under the principle of sustainable development. Only in this way, we can make a balance between investment protection and environmental protection, human rights protection, and therefore, the goals of sustainable development can be achieved.With the unremitting efforts of all parties, achieving the goal of sustainable development is still a long way to go. This paper attempts to make advices for the legal coordination of conflict between international investment treaties and the principles of sustainable development.First, the goal of establishing an international investment treaty needs to be changed from investor protection to sustainable development. To encourage investment, international investment treaty needs to protect the interests of investors. Besides, it should also leave some leeway and flexibility for government policies to ensure sustainable development of the host country. Secondly, the scope of investor protection terms(fair and equitable treatment and indirect expropriation, etc.) should be clearly, preventing frivolous claims by investors based on investor protection clauses. It also provides legal basis for interpreting terms by arbitrators, avoiding abuse of discretion. Thirdly, terms of division and performance of responsibilities between investor and his home country should be added in investment treaties. These terms will not only promote investors to take social responsibility in the host country, but also allows the host country to pursue the responsibility of investors who destroy the environment. Finally, transparency is needed in international investment dispute settlement procedures by introducing public participation and supervision. |
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