Legal Prevention And Relief Of Government Default Risk In International Investment

In recent years,with the continuous development of economic globalization and trade liberalization,to achieve the best allocation of resources in the world of international investment activities are flourishing,lead to the various factors of production,including capital flows across borders.In some developed countries international investment has played a vital role in the process.Developed countries through foreign investment to reduce the production cost,domestic resources,technology,the optimized allocation of capital around the world.But with the rise of developing countries,as well as the deepening of globalization,international investment,Many developing countries,including China,have also shifted from traditional capital-importing countries to countries with capital-based exports,This year in September held in Hangzhou G20 summit is a good proof,To revive the two major development of trade and investment engine,G20 Hangzhou summit to promote the construction of an open world economy,Continue to promote trade,investment liberalization,facilitation,stressed that international investment plays an increasingly important role in the developing countries should continue to improve the scale and quality of overseas investment,Strengthen cooperation with developed countries in taxation,energy,anti-corruption and other fields,and create a favorable institutional environment for world economic growth.It can be seen that developing countries play an irreplaceable role in the globalization of economic trade.However,any investment behavior is a double-edged sword,international investment is no exception.On the one hand,foreign investment enterprises in the investment process to obtain profits,on the other hand they have the possibility of default risk of government.The parties to the risk of default are often unequal.The host government has the character of international law and is protected by international law.However,it is difficult for foreign investors to prevent and resolve when the host government fails to perform or refuse to perform the contract.Once the government default risk occurs,the losses are often incalculable.Therefore,it is necessary to study the legal protection mechanism of the risk,analyze the existing problems and improve the corresponding proposals in order to achieve risk aversion,maintain the safety of foreign capital and promote the development of overseas investment purposes,the ultimate realization of national economic strategy and global resource optimization Very significant significance.At present,there are two types of insurance commonly used to deal with overseas investment default risk,One is by means of the insurance mechanism by the insurer underwriting,the performance of the national foreign investment insurance system,the Multilateral Investment Guarantee Agency(the following referred to as MIGA).The other is the agreement between the countries through the investment agreement and commitment,and then to the occurrence of government default risk certain constraints,the performance of bilateral agreements between the two countries signed investment protection agreements.The main purpose of the overseas investment insurance system is to protect the investment safety of domestic enterprises.MIGA is now the largest multilateral investment protection agency,it makes up for the domestic insurance agencies within the scope of the insurance coverage and the lack of compensation relief.Bilateral investment protection agreements are signed between capital-exporting countries and capital-importing countries to promote,encourage and protect international private investment.These two types of security mechanisms have advantages and disadvantages,In this paper,the framework of investment insurance system,and note that the exporters of foreign investment insurance(guarantee)mechanism and the Seoul Convention based on the existence of multilateral investment guarantee mechanism between the association and differences,Through the analysis of the government default risk in the two insurance mechanisms in the provisions and application,come to the mechanism in resolving the risk of the existing problems,make perfect recommendations.At the same time compare the overseas investment insurance system and MIGA regulations on the government default risk in order to realize the purpose of the two systems,and to promote international investment towards a more perfect and safer direction.In addition to the introduction and conclusion,this paper is divided into four parts.The first part,by analyzing the case of Zimbabwe's government forced closure of diamond mines,lead to a government default to international investment losses and bad influence.The reason and background analysis of the case at the same time,involved in related legal and coping measures to give specific advice.Finally from the aspects of reality and urgency of the government default risk analysis to solve the meaning of this kind of risk.The second part,the author mainly summarize the default risk of government,limiting government default risk in the international direct investment to discuss,from the perspective of the definition,characteristics,generation and development of the concept of government default risk analysis of international investment.And analyzes the reality and significance of solving the default risk of government,and emphasizes the importance of resolving the default risk of government to the foreign investment of each country.The third part expatiates on the concept and characteristics of the existing overseas investment insurance system and the MIGA and the application of the government default risk in the two insurance mechanisms to reveal that only relying on the existing mechanism to solve the government default risk is not perfect,inappropriate.And analyzes the relationship between the overseas investment insurance system and the MIGA,demonstrating the advantages and disadvantages of the two,complementing each otherThe fourth part puts forward some concrete suggestions on the improvement of the international and domestic levels.On the basis of the analysis of the existing problems of foreign countries and the existing mechanisms of the two countries,The author puts forward two kinds of perfect suggestions:firstly,it puts forward some pertinent suggestions on the improper aspects of the existing mechanism in practice;secondly,from the current situation of each country's legislation and the overseas investment insurance system,the government default risk is not appropriate and imperfect Specific recommendations.The innovation of this paper is that the author analyzes the legal precaution of default risk from the perspective of investment home country.The author finds out the problems of government default risk and the problems encountered by the existing mechanism in solving the risk through the case of the Zimbabwean government shutting down the diamond mine,and puts forward the corresponding perfect suggestion from the international and domestic levels.In the content,the author not only stressed that the domestic law to strengthen the risk prevention awareness,the establishment of risk assessment system,at the same time to continuously improve the overseas investment-related legislation.At the level of international law should also pay attention to national and international systems of convergence,more use of MIGA enterprises to solve the government default risk.