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Analysis Study Research Paper | Law | Bangladesh | Volume 13 Issue 9, September 2024 | Popularity: 5 / 10
International Human Rights Law, Economic Globalization and FDI
Md Mahbubur Rahman
Abstract: The intersection of International Human Rights Law and Foreign Direct Investment (FDI) highlights a critical dimension of globalization that affects global business practices and human rights protections. As multinational corporations expand their operations across borders, the impact of their activities on human rights becomes increasingly significant. Ensuring that FDI respects and upholds international human rights standards is crucial for fostering ethical and sustainable development. Economic globalization refers to the increasing integration and interdependence of national economies through the cross-border exchange of goods, services, information, and capital. FDI plays a central role in this process as a critical mechanism for international capital flow. FDI occurs when a firm from one country establishes or expands business operations in another, influencing the host country?s economic development, trade, and employment. FDI fosters economic growth by enhancing technology transfer, improving management practices, and increasing competition. However, it also raises concerns over potential labor exploitation, environmental degradation, and erosion of local industries. The relationship between FDI and globalization highlights the opportunities and challenges countries face as they become more interconnected in the global economy. Policymakers aim to balance attracting FDI while protecting domestic interests and promoting sustainable and inclusive growth. This paper examines the intersection of Foreign Direct Investment FDI and international human rights law, focusing on developing economies. It highlights the benefits of FDI in fostering economic growth, technology transfer, and employment while addressing concerns over labor exploitation and environmental degradation. The study explores how international legal frameworks, such as the UN Guiding Principles on Business and Human Rights, can help mitigate these risks, offering strategies for aligning FDI with human rights standards in developing countries. This study is significant as it provides insight into how developing countries can benefit from FDI without compromising their commitment to human rights protections, a critical balance in the era of economic globalization. This study will examine these problems with specific reference to the developing countries. 1) The influx of FDI either improves human rights standards or exacerbates human rights violations in developing economies. 2) International human rights standards legally bind MNCs, who are held accountable when violations occur in host countries. 3) Economic globalization has facilitated stronger human rights protections but also created challenges for enforcement in developing countries. 4) Institutions like the IMF and World Bank ensure that their policies promote FDI while respecting human rights standards, and these measures are adequate to varying degrees. 5) Developing countries can adopt specific strategies or legal frameworks to ensure that FDI aligns with human rights obligations. 6) Current international legal instruments, such as the UN Guiding Principles on Business and Human Rights, are adequate in addressing human rights violations linked to FDI.
Keywords: Economic Globalization; Foreign Direct Investment FDI; International Human Rights Law; MNCs; Developing economics
Edition: Volume 13 Issue 9, September 2024
Pages: 478 - 483
DOI: https://www.doi.org/10.21275/SR24908220550
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