All posts by Zoe Williams

Investor-State Dispute Settlement in Europe

In the last few months, criticism of  TTIP’s proposed investor-state dispute settlement  (ISDS) provision has become  so mainstream that even The Economist is questioning whether it’s such a good idea. More to the point, some of the biggest players this side of the Atlantic have also come out against it, largely it would seem, mirroring public sentiment.   French officials now claim that TTIP is a no-go if ISDS is kept in, while Germany has spoken out against its inclusion in TTIP, and has gone so far as to backtrack on agreements already made, saying that they want ISDS scrapped from CETA, the EU-Canada free trade agreement (which, until recently, nobody outside of Canada seemed to care about).

The perception of the  threat that ISDS poses is connected to the different health, food and environmental standards in Europe and the US. ISDS allows investors to sue host state governments for unfair or discriminatory treatment, and critics argue that investors will use arbitration (or even the threat of it) to force Europe to lower its regulatory standards based on treaty provisions. As proof of the potential for investors to employ ISDS to attack regulatory standards, critics frequently cite the cases of Philip Morris v. Australia, in which the tobacco company is suing over the country’s decision to require plain packaging of cigarettes, and Swedish energy company Vattenfall suing Germany over Merkel’s nuclear phase-out.

A threat does exist, as investors, and more importantly, arbitration lawyers are expanding the use of investment arbitration. As this article/advertisement  written by arbitration lawyers suggest, there is money to be made by actively looking for “innovative” uses for ISDS.

However, others argue that Europe’s sudden distrust of ISDS is hypocritical. European states, or at least European investors, have been a driving force behind ISDS in the past. The first Bilateral Investment Treaty was signed by Germany (with Pakistan) in 1959, and since then,  EU member states have signed at least 1400 BITs. Between 2008-2014 alone, EU investors made up 53% of all claimants in investor-state disputes.

Of course, more interesting to critics is likely the track record of EU states as respondents in these lawsuits. So here’s a breakdown of the cases Europe has faced so far, based on my own research.

eu

 

Here we see the EU member states which have been respondents in arbitration cases. The majority are transition economies, although Spain, Germany, Belgium and the UK have also been faced lawsuits. The concentration of disputes in formerly Communist countries is not surprising, given the logic that has (up until TTIP and CETA) governed BITs. That is, these agreements have usually been signed by pairs of countries between which the investment generally flows only in one direction – most often from developed to developing countries (or at least countries perceived to have unreliable domestic courts).  In other words, when the US and the Czech Republic signed a BIT in 1991, the implicit goal was to protect US investments in the Czech Republic. On the other hand, Western European states and the US have not found it necessary to sign BITs between themselves, as both sides have been confident in the domestic courts and investment climate of the other. At least, until now.

industries

The above shows the industries most often implicated in investor-state disputes involving EU members. How does this compare to investment disputes worldwide? At the global level, electricity and other energy, as well as oil, gas and mining, are the industries that see the greatest number of disputes. Not surprising, given that these industries are often politically interesting already. Extractive industries seem to attract  a range of governance problems, while public utilities are often are privatized to the detriment of low-income consumers.   What appears to be Europe-specific here is the concentration of cases in media and health insurance (although both relate to a number connected cases in Czech Republic and Slovakia).

measures

And here we have a breakdown of the state “measures” which are triggering disputes in Europe. The top two categories are the very specific measure of canceling an agreement, permit, or license of an investor, while the second category – regulatory change – encompasses a range of measures  which effect an entire industry or even the general public.

Finally, how litigious are US companies? Of the 561 known arbitration cases listed on UNCTAD’s IIA database, 124 cases, or 22%, involve US investors.  It’s impossible to know how often US investors will use ISDS under TTIP, if the agreement ultimately includes the provision. All we can say for certain at this point is that if it is left in, a great deal more of global FDI flows will suddenly be covered by ISDS.

Note: Edited to add French dispute to graph which had previously been left off.

Links: The Postdoc Edition

I don’t remember when I first realized there was something else I might have to do after  my PhD, but before I got an actual job academic job. And though I now know what a postdoc is, and that I might have to do one, a lot about postdocs remains shrouded in mystery.  As one on the topic notes – being a postdoc is like existing in “some kind of institutional purgatory” and numerous Google searches haven’t been terribly illuminating. One common element to many of the blog posts and articles on postdocs that I’ve read, however, is a certain negativity that is common to disenchanted academics. Some titles I’ve come across include: “The Postdoc: A Special Kind of Hell” , “Before Professor Comes Postdoc: Lower Career Rung, Just as Much Job Stress” and “The Postdoc Experience: High Expectations, Grounded in Reality”

What I have gleaned substantively is that there is no set definition for what a post-doctoral position actually is, and the importance varies from discipline to discipline as well as country to country. Moreover, what you do in the postdoc may be somewhat dependent on what you did during your PhD – for example, if you did not produce enough publications, you may spend some time publishing work from your dissertation. Another important distinction is if your postdoc position is part of a larger research project, or essentially just funding for you to do your own research (and perhaps a bit of teaching).

However, a survey of postdoc positions identified some common characteristics: the recent completion of a PhD prior to the postdoc position; the position is temporary; the appointment involves substantial research, with a goal towards further training; there is an expectation that work will be published; and the postdoc works under the supervision of a senior scholar.

Continue reading Links: The Postdoc Edition

Trade Agreement Trends

Three expansive and controversial trade agreements – the Trans Pacific Partnership, the Transatlantic Trade and Investment Partnership and the Comprehensive Economic and Trade Agreement – are currently in the negotiation or ratification stages. These three (with some overlap with the EU, US and Canada) involve some of the world’s biggest economies and, if successful, will implement rules that critics claim go far beyond traditional trade agreements. However, the fate of all three agreements remains uncertain. CETA still needs to be ratified by the EU parliament as well as 28 member states, while TTP and TTIP are bogged down in negotiations.

All these acronyms can get confusing, so, who is involved in these agreements and what are the points of contention?

Trans Pacific Partnership

The TTP began as a proposed agreement between Chile, New Zealand, Singapore and Brunei. In January 2008 the US joined negotiations, followed by Australia, Vietnam, Peru (2009) and Malaysia (2010) and Canada and Mexico (2012). In 2013 Japan entered negotiations and Taiwan, South Korea and even China have expressed interest. All told, these countries make up 40% of the world’s GDP.
Continue reading Trade Agreement Trends

Links: War on Terror


As the war on terror/ “nation-building” exercises in Afghanistan and beyond seem like a fact of life at this point, we’re probably due for an update.

Luckily for us, this year’s Oscar nominated Dirty Wars (based on Jeremy Scahill’s book of the same name) gives us a chance to get reacquainted with the topic. The film focuses on Afghanistan, Yemen and Somalia, where Scahill investigates the US’s (sometimes poorly) targeted strikes against individuals on ever-expanding kill lists. While the film features close-ups of Scahill’s concerned looking face a bit too much for my taste, it’s worth watching, especially for the scenes in Somalia, where Scahill meets warlords now being armed and paid by the US to fight al-Shabab (Sound familiar?).

Continue reading Links: War on Terror

What we talk about when we talk about compliance

How to write about, or whether to even use, the concept of compliance is something I’ve struggled with in my own work. I was therefore thrilled to read Lisa Martin’s convincing piece on what she deems is a misguided use of compliance in IR (go here for an earlier version free to download).

Essentially, Martin argues that IR scholars have devoted time and resources to studying states’ compliance with international institutions, despite the fact that compliance is not what they are interested in. A central question for IR scholars is determining causal effects – answering the counterfactual of how real state behaviour would differ in the absence of the institution of interest. These interesting indicators are observed changes in behaviour, and the substantive content of state policies. A focus on compliance, she argues, could lead us to miss these entirely.

To illustrate this, Martin gives the example of a state with low levels of environmental regulation, ratifying an environmental treaty. Upon joining,

“The institution provides knowledge and capacity, and in response State B modestly improves its performance on emission indicators. However, it still falls short of institutional requirements. If compliance were measured dichotomously, State B would be found out of compliance.”

Continue reading What we talk about when we talk about compliance

International Investment Treaties and IR

A few weeks ago I attended a conference at the Freie Universität –
International Investment Agreements – Balancing Sustainable Development and Investment Protection. The conference brought together an array of lawyers, arbitrators and law professors, as well as government, NGO and IO employees. Central to the conference was a discussion of UNCTAD’s recently launched Investment Policy Framework for Sustainable Development (IPFSD).

IIAs have been receiving a fair amount of media attention lately (at least in Canada). In case you haven’t caught any of this, or aren’t forced to hear me talk about it in a colloquium session, a brief refresher: Investment agreements (IIAs) are generally bilateral investment treaties (BITs) or embedded in FTAs, and commit countries to maintaining stringent investor protection standards. Controversially, they allow investors from one of the states party to the treaty to initiate arbitration proceedings against the government of the other. Arbitrators are then charged with deciding on the legality of domestic measures affecting an investor, which may range from fairly clear cut cases of corruption to honest attempts to regulate in the public interest.

While it’s still a bit of a niche topic, the discussion at the conference touched on a number of issues that are likely of interest to a wider audience of IR and development scholars and practitioners.
Continue reading International Investment Treaties and IR

Links: Keep calm and carry on?

Protests in Turkey
A whirling sufi wearing gas mask in 2013 protests in Turkey in Gezi Park (2 June 2013) –  CC-BY-SA “Azirlazarus”, Wikimedia Commons

The biggest news over the last week of course has been the events in Turkey, and speculation about the movement – “Occupy Gezi” or the “Turkish Spring” – is everywhere. So, are we witnessing the beginning of a revolution, or will these protests go the way of Occupy and fizzle out over the coming months?

According to some at Foreign Affairs, the protestors are primarily “peevish elitists” and “anti-capitalist Muslims” and, with 50% of voters behind him, Erdogan doesn’t need to worry (especially given Turkey’s recent economic success).

Or, it could be that Erdogran’s conservative cultural agenda, which places restrictions on alcohol consumption and access to abortion; tensions over urban development; and his proposed move from a parliamentary to a presidential system with extensive new powers for the president, has sufficiently worried the other 50% of the population that didn’t vote for him.

Either way, it’s important to know that, while the Arab Spring was tweeted, whatever’s going on in Turkey is going to be “Vined” (is that something we’re going to have to say now?)

For more on Turkey, here’s a post from The Monkey Cage with links to some interesting details not being widely reported. Also note this data on Twitter usage in the protest.

Continuing with a regional and thematic focus, while the Arab Spring unrest has apparently made Dubai even richer Tunisia’s president says the country’s progress is jeopardized by persistent poverty.

Meanwhile, Egypt is passing legislation that strengthens government control over NGOs, potentially denying them domestic and international funding says Human Rights Watch.

It’s not all bad news though – while the Chinese government likes to censor any mention of the June 4th Tiananmen Square massacre, some clever people have found an ingenious way around that.

IR and the Public Sphere – The “Cult of Irrelevance”?

walt
Stephen Walt

“I thought scholars like me were going to discover timeless truths about world politics, a grateful policy community would eagerly embrace our results, and then of course follow our advice… needless to say, I was dead wrong. In fact, there is a widespread sense that university-based scholarship is of declining practical value.” – Stephen Walt
 

Last September, Stephen Walt gave a talk at Brown University on lamenting the discipline of IR’s lack of engagement with the public sphere, and put forward some suggestions on what could be done to increase the relevance and impact of university research. (He also repeatedly blogged about this topic.)

We’d like to summarize his major points here and add our view on the debate.

Continue reading IR and the Public Sphere – The “Cult of Irrelevance”?

The (International) Politics of Resource Conflicts

DSCF1335

Natural resources have been in the news a lot recently, if you’ve got an eye out for that kind of thing. Guatemala has declared a state of emergency in the South-East of the country after protests erupted over a proposed silver mine. A recent report by Canadian NGO Mining Watch has shed some light on the role of the Canadian Embassy in Mexico played in supporting Blackfire Ltd., a company that was implicated in bribing local officials and allegedly had a role in the murder of a local anti-mining activist. Meanwhile Peru has announced that it has re-evaluated its methods of dealing with anti-mining activity after massive protests led to a number of deaths last year. Apparently the government will now place a greater emphasis on mediation rather than the more repressive measures used to deal with conflict in the past. Finally, Foreign Affairs and the BBC have given a lot of coverage to Mongolia’s emergence as mining’s “final frontier” and subsequent tensions between Rio Tinto, the government and local communities.

Continue reading The (International) Politics of Resource Conflicts

A North American Perspective on doing a PhD in Europe

europe
Whether we like it or not, the world academic language is English, and if you are a North American aspiring academic, it would make sense to stay close to the ivy-covered centre of the universe. Some of us, however, do not make that choice. We are two Canadians (one Anglophone and one Francophone) who decided to study in Europe instead of staying in Canada or going to the US. Much is made of the differences between Anglo-American and European approaches to both of our disciplines (IR and philosophy respectively) and leaving North America to study in Europe may raise a few eyebrows.

So, what is it like to leave the hegemonic academic culture to study in Europe? We asked ourselves a few questions about it, and the following is our take on doing a PhD across the pond…

Continue reading A North American Perspective on doing a PhD in Europe