FDI – Does the Rule of Law Matter?
  • “It depends”
  • In some instances the answer may be “Yes”
  • In certain instances the answer may be “No”
  • The key to determining the answer will always 
   lie in the vision and objectives to which a 
   nation has aligned itself
     Introduction – Rule of Law
  • Is there an objective definition of “Rule of Law”?
  • Different things to different people
   –Prisoner (access to justice)
   –Investor (effective enforcement of rights)
   –Regular citizen (lack of accountability)
  • “Why should any society seek to establish the 
   rule of law and how does this impact foreign 
   direct investment”?
   Rudiments of the Rule of Law
    Rudiments of the Rule of Law
  • Balancing power in society – no one is above 
   reproach and ordinary citizens have a right to 
   air and have their grievances addressed 
  • A set of principles that provides objective 
   standards for applying laws so that: (1) no one 
   is disadvantaged by being denied access to a 
   known and documented set of laws and (2) no 
   one can circumvent laws due to wealth or 
   position in society 
    Rudiments of the Rule of Law
  • Combination of three critical elements:
   –Legal and regulatory regime
   –Institutional framework
   –Cultural context
  • World Justice Project
   –Established in 2006
   –Created under the American Bar Association
   –Established 4 principles that underpin the rule of 
    law