A Multilateral Investment Framework : Would it Be Justifiable on Economic Welfare Grounds?

The paper assesses the Singapore issues on economic welfare grounds. It finds that most arguments in favour of a Multilateral Investment Framework (MIF) are not compelling. Further international accords are largely unsubstantiated on economic grounds, with the important exception of the regulation of incentives to attract foreign investment. The latter are largely considered as beneficial by industrialised countries and their multinationals, and fall outside current proposals for an MIF. Moreover, although a MIF may raise total global welfare, it does not necessarily represent a desirable option for all countries, as it would largely undermine developing countries' flexibility to regulate foreign investment in the domestic economy