Comparative Public Law & Democratic Republic of Karelia – Law Assignment Help

Assignment Task

Task
The Democratic Republic of Karelia is considering a variety of measures to encourage foreign investment in its domestic economy. At the same time, it seeks to protect certain important national interests, some of which are unique to its history and culture. Among the questions it must address is to ascertain an appropriate response to the Government of Conarky’s offer to negotiate a bilateral investment treaty (BIT). You are an expert on foreign investment and are employed by the Foreign Ministry (the “FM”) of the Democratic Republic of Karelia as an independent legal consultant. The Prime Minister of Karelia has requested the assistance of the FM in developing an appropriate legal framework and overall foreign policy for investment. Specifically, the Karelian Prime Minister seeks guidance in light of the present global controversies surrounding the treaty-based international investment regime. The FM has provided you a few weeks to draft a memo to advise the Prime Minister. As your deadline draws to a close, the Prime Minister asks for your recommendations, with reasons, as to what position Karelia should adopt, particularly with regard to an official stance on certain key provisions of the proposed BIT. Please advise him accordingly. Keep in mind, at all times, the options available as well as the limitations appurtenant thereunto, in respect of the excerpt on dispute resolution taken from Conarky’s Model BIT, as annexed hereunder. Use your understanding of Karelia’s economy, policies and other general information in preparing your submission.

In General

The Democratic Republic of Karelia is a developing country in Western Africa with a population of 6 million inhabitants. It has a land area of 150,000 square kilometres.  Fifty-five percent of its population lives in rural areas. The climate is equatorial in the eastern section but temperate in the central highlands. The population is composed of 45% Christians, 20% Muslims, and the remainder follow various other local religions. Its army consists of 150,000 soldiers, and it has a police force of over 30,000.

Economic Life

The economy is based primarily on agriculture, with oil production playing a significant but lesser role. Rice is its principal agricultural product and production last year was approximately 4.4 million tonnes. Sugar production of 2 million tonnes annually is also important, followed by coffee production of 1.2 million tonnes. The production of both crops fluctuates considerably depending on weather conditions in a given year. Since the early 1980s, findings of petroleum deposits has contributed significantly to export earnings.The country’s economic future depends particularly upon an improvement in agriculture and its natural resources sector. With little of its agricultural production obtained by non-mechanized means, there has been increasing focus towards improving agricultural techniques and the increased processing of agricultural products. Further, the global turn away from oil in favour of green energy has meant that Karelia’s future earnings from petroleum export faces great uncertainty.   Karelia is also considering the privatization of many public sector enterprises that have increasingly become inefficient and uncompetitive in the last two decades. Karelia has a per capita income of approximately $2300 per year. Its currency, known as the Ruri (Ru.), is not convertible and is currently equivalent to 0.2 US dollars. Tourism continues to steadily develop in the country due to private investments, although the government has promised to increase spending in the sector. The country currently has 300 hotel rooms, most of which are located in the capital of Sili. Karelia appears to have significant touristic potential of because of its natural beauty, long coastline, fine beaches, and lovely highlands. Its principal trading partners are China (25.8%); Conarky (13%); France (12%); United States (11%); and Japan (7%). Its total foreign debt is $1.05 billion, of which $350 million is owned to official creditors.