Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: Please refer to fulltext for abstract / AFRIKAANSE OPSOMMING: Buitelandse Direkte Investering (BDI) kan 'n beduidende rol in die ontwikkelingsproses van 'n land speel. Vir hierdie rede is gasheerlande begerig om investering te lok en wel vir die voordele wat dit bring. Meeste ontwikkelende lande promoveer hulleself vir hierdie doel. Voorbeelde hiervan is die liberalisering van wetgewing en regulasies om dit vir BDI aantreklik te maak soos die verskaffing van waarborge oor die repatriasie van winste en die skep van meganismes vir die beslegting van investeringsgeskille. Dit lei egter nie outomaties tot verhoogde investering nie. Oor die afgelope 10 jaar het die VN se Konferensie vir Handel en Ontwikkeling (VNKHO) byvoorbeeld bevind dat Suid-Afrika se beleggingspotensiaal nie ten volle benut word nie. Die doel van hierdie studie is om uit te vind wat die redes hiervoor is. Oënskynlik beskik Suid-Afrika oor alle vereistes: 'n stabiele ekonomie en politieke sisteem en 'n goeie beleggingsklimaat. Ten einde die probleem beter te verstaan, is 'n vergelykende BDI studie met Maleisië onderneem wat veel meer suksesvol was. 'n Vergelykende metodologie is ontwerp wat gebaseer is op kriteria van die VNKHO se World Investment Reports en die World Association of Investment Promotion Agency (WAIPA). Beleide, vergelykende mededingendheid, handelsooreenkomste en belastingaansporings is ook by die vergelykings ingesluit. Dit is spesifiek gedoen omdat die kwessie van belastingaansporings 'n kontroversiële saak is. Lok dit regtig beleggings? Is daar dalk ander kostes hieraan verbonde? Die vergelykende metodologie het nuttige insigte opgelewer, ook hoekom BDI nie altyd plaasvind nie. Daar is vier faktore wat Suid-Afrika benadeel: arbeidshulpbronne, beperkte plaaslike en streeksmarkte in Afrika, politieke en ekonomiese onsekerheid, en yslike maatskaplike probleme met armoede en vigs. Daar mag egter ook ander faktore wees waarom spesifieke transnasionale korporasies nie belê nie. Dit is bevind dat die SA regering méér kan doen om aktiewe BDI te bevorder, selfs met gerigte aansporings. Dit is van die grootste verskille met Maleisië. Hierdie studie het ook bevind dat vergelykende metodologieë meer kan doen om van groot maatskappye te verneem waarom beleggingsbesluit geneem, of nie geneem word nie. Die volgende drie leemtes kan ook uitgewys word: wat is die spesifieke impak wat BDI op die Suid-Afrikaanse ekonomie het? Dis onseker. Wat beplan die regering ten opsigte van BDI strategieë en aansporings? Geen nuwe beleide is die afgelope jare geformuleer nie. Laastens, behoort soortgelyke tersaaklike inligting in aanbevelings bevat te word wat Suid-Afrika se BDI prestasie verhoog.

Thesis (MBA)--Stellenbosch University, 2001. / ENGLISH ABSTRACT: The aim of this study is to compare the potential for foreign direct investment (FDI) in Angola and Nigeria. The investment criteria of WAIPA (World Association for Investment Agencies) and UNCTAD (United Nations Conference on Trade and Development) were used as framework for comparison. FDI is of great importance to developing countries in as far as the inflow of foreign capital to host countries, transfer of knowledge and technology takes place thereby strengthening the economy of host countries to compete in the global economy. The point of departure was that Angola and Nigeria do not meet the WAIPAIUNCTAD investment requirements, but yet they receive large amounts of FDI. This reason for these inflows of FDI, was one of the key questions that needed to be answered. The study showed that both Angola and Nigeria have large oil and natural gas reserves, and that the majority of FDI that they receive, are invested in these sectors. Natural resources are one of the WAIPAIUNCTAD investment criteria. Die conclusion of the study was that Angola and Nigeria do not meet the majority of the investment criteria, and this is also the explanation that there is very little FDI investment outside of the oil sector in these two countries. The most important conclusion is that multi-national companies will invest in countries if conditions are not ideal, but that the returns are higher than the risk associated with the investment. This is the case in Angola and Nigeria with their large oil and natural gas reserves. / AFRIKAANSE OPSOMMING: Die doel van hierdie werkstuk is, om die potensiaal vir direkte buitelandse investering (DFI) van Angola and Nigeria te vergelyk. Die investerings kriteria van WAIPA (World Association for Investment Agencies) en UNCTAD (United Nations Conference on Trade and Development) is gebruik as vergelykings raamwerk. DFI is van groot belang vir ontwikkelende lande deurdat buitelandse kapitaal in die gasheer land belê word, oordrag van kennis en tegnologie plaasvind en dus daardeur die gasheer land se ekonomie versterk en meer kompeterend maak om in die globale ekonomie te funksioneer. Daar is van die veronderstelling uitgegaan dat Angola en Nigeria nie aan die vereistes voldoen van WAIPA/UNCTAD nie, maar ten spyte daarvan ontvang hierdie lande nog steeds groot bedrae DFI. Die rede vir hierdie verskynsel is een van die kernvrae wat beantwoord moes word deur die werkstuk. Dit blyk uit die werkstuk dat beide Angola en Nigeria oor groot bronne olie en natuurlike gas besit en dat die oorgrote meerderheid van die DFI wat hierdie lande ontvang, in hierdie sektor belê word. Natuurlike hulpbronne is een van die WAIPA/UNCTAD kriteria vir DFI. Die gevolgtrekking van die studie is dat die Angola en Nigerie nie aan die meerderheid van hierdie belegings kriteria voldoen nie, en dat dit die verklaring is dat daar uiters min DFI beleggins buite die olie sektor in hierdie twee lande is. Die belangrikste gevolgtrekking is egter dat multi nasionale maatskapye wel in lande sal belê indien die opbrengs op investerings groter is as die risiko verbonde daaraan, soos in die geval van Angola en Nigeria met hul groot olie hulpbronne.

Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: The study project was aimed at analysing the factors that account for the difference and intensity with regard to the attraction of FDI inflows by developing countries and the benefits brought about by this FDI. It is believed that economic growth can only be achieved where there are no barriers to trade. Trade liberalisation forms the central part of the structural adjustment programmes advocated by the international financial institutions, the World Bank and IMF. The theory of comparative advantage lies at the heart of trade. There is a strong belief that countries will benefit more when specialising in producing goods and services in which they are efficient, those that they can produce at lower costs than other countries. However, researchers like Madeley, (2000:50) argue that the benefits of free trade can only be realised if trade takes place between countries at equal levels of economic development. This is true when one takes into account the fact that developing countries are not well equipped to cope with more developed countries and when looking at the intensity of trade in both cases, With trade liberalisation and competitive global economy, the developing countries are forced to turn to multinationals because there is hope that through them they can benefit from global trade and be able to compete for the limited resources. It is only through the attraction of foreign direct investment or by influencing the location decisions of multinationals that countries can achieve sustainable economic growth. This is so because globalisation and trade liberalisation have concentrated the power of trade in the hands of the multinationals. Multinationals have advantages in global trade because they possess distinct / superior assets which enable them to compete well in the global market. These assets include efficient production processes and continuous process improvements, the ability to eliminate unnecessary process steps, they enjoy economies of scale because of mass production and standardisation, they possess managerial and marketing skills and they can obtain less expensive financial resources because of their credit worthiness. The use of advanced technology by multinationals gives them the power and advantage in the sense that they can achieve high levels of quality in terms of consistency in production and timeliness. Multinationals have built strong relationships with suppliers, banks and other organisations in different fields, world wide. It is, however, noted that developing countries continue to face problems and challenges with regard to the attraction and maintenance of foreign direct investment because these multinationals favour countries where they are sure that their investments will get sustainable future returns. It is, however, imperative that developing countries position themselves advantageously when competing for FDI. In light of this, some developing countries have opted to enhance their fitness and abilities through the promotion of regional integration and cooperation among themselves and neighbouring countries, for purposes of complementing each othe~'s weaknesses and working together towards achieving common goals. The factors which contribute to the attraction of foreign direct investment include: • Rigorous basic education system plus provision of appropriate education. • Size of the economy and the market. • Cost and quality of local inputs. • Governance, political stability and stable macroeconomic policy. • Infrastructure (telecommunication, roads and the internet). When analysing Botswana, it was noted that the country relies heavily on the mining sector as the major source of foreign direct investment and economic growth. The country needs to diversify the industrial base away from mining. The government needs to pay attention to the factors which deter FDI investment in Botswana. / AFRIKAANSE OPSOMMING: Die studieprojek het ten doel die ontleding van die faktore wat verantwoordelik is vir die verskil en intensiteit in die aanlok van invloeie van buitelandse direkte belegging (BDB) deur ontwikkelende lande en die voordele wat deur hierdie BDB teweeggebring word. Daar word beweer dat ekonomiese groei net bewerkstellig kan word wanneer handel nie belemmer word nie. Die liberalisering van handel maak die kern uit van die strukturele aanpassingsprogramme wat deur die internasionale finansiële instansies, die Wêreldbank en IMF, voorgestaan word. Die teorie van vergelykende voordeel is die kern van handel. Daar word geglo dat lande meer sal baat indien hulle spesialiseer in die produksie van goedere en dienste waarin hulle bedrewe is en wat hulle teen laer koste as ander lande kan produseer. Navorsers soos Madeley, (2000:50) beweer egter dat die voordele van vryhandel net verwesenlik kan word indien handel plaasvind tussen lande met dieselfde vlak van ekonomiese ontwikkeling. Dit is wel die geval wanneer 'n mens die feit in ag neem dat ontwikkelende lande nie goed toegerus is om met meer ontwikkelde lande mee te ding nie en wanneer 'n mens na die intensiteit van handel in albei gevalle kyk. Met die liberalisering van handel en mededingende wêreldekonomie word ontwikkelende lande genoop om hulle tot multinasionale maatskappye te wend in die hoop dat hulle sodoende voordeel kan trek uit internasionale handel en om die beperkte hulpbronne kan meeding. Slegs deur buitelandse direkte belegging te lok of deur die besluite oor die ligging van multinasionale maatskappye te beïnvloed kan lande volhoubare ekonomiese groei bewerkstellig. Dit is so omdat globalisering en die liberalisering van handel die handelsmag in die hande van die multinasionale maatskappye geplaas het. Multinasionale maatskappye geniet voordele in wêreldhandel omdat hulle bepaalde / superieure bates het wat hulle in staat stel om mededingend te wees in die wêreldmark. Hierdie bates sluit in doeltreffende produksieprosesse en deurlopende prosesverbeteringe, die vermoë om onnodige prosesstappe uit te skakel, die feit dat hulle skaalbesparings geniet danksy massaproduksie en standaardisering, bestuurs- en bemarkingsvaardighede besit, en goedkoper finansiële hulpbronne kan bekom danksy hul kredietwaardigheid. Multinasionale maatskappye se gebruik van gevordere tegnologie verleen aan hulle die mag en voordeel in dié opsig dat hulle hoë vlakke van gehalte in terme van konsekwentheid van produksie asook tydigheid kan bereik. Multinasionale maatskappye het sterk verhoudings met verskaffers, banke en ander organisasies op ander gebiede wêreldwyd opgebou. Ontwikkelende lande staan egter steeds voor probleme en uitdagings rakende die aanlok en behoud van buitelandse direkte belegging, aangesien hierdie multinasionale maatskappye ten gunste is van lande waar hulle seker is hulle beleggings volhoubare toekomstige opbrengste sal oplewer. Dit is egter noodsaaklik dat ontwikkelende lande hulself voordelig posisioneer wanneer hulle om BDB meeding. In die lig hiervan het sekere ontwikkelde land besluit om hul geskiktheid en· vermoë te verbeter deur die bevordering van gebiedsintegrasie en samewerking tussen hulle en buurlande met die doel om mekaar se swakhede aan te vul en saam te werk om gemeenskaplike doelwitte te bereik. Die faktore wat bydra tot die lok van buitelandse direkte belegging is onder meer: • 'n Streng basiese onderwysstelsel plus voorsiening vir behoorlike opvoeding. • Die grootte van die ekonomie en die mark. • Koste en gehalte van plaaslike insette. • Regering, politieke stabiliteit en stabiele makro-ekonomiese beleid. • Infrastruktuur (telekommunikasie, paaie en die internet). Met die ontleding van Botswana is daarop gelet dat die land baie afhanklik is van die mynbousektor as die belangrikste bron van buitelandse direkte belegging en ekonomiese groei. Die land moet die nywerheidsbasis weg van mynbou diversifiseer. Die regering moet aandag gee aan die faktore wat BDB in Botswana verhinder.

Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: The relationship between competitiveness and FDI inflow was investigated in this study. South Africa needs FDI to stimulate the economy with the ultimate goal of reducing unemployment and improving the quality of life of the population. Substantial FDI inflow was expected after the peaceful transition to a multi-party democracy in 1994. The data of the IMD World Competitiveness Yearbook (WCY) was used to measure competitiveness. The UN Human Development Index was used to determine the progress of human development. The annual World Investment Report published by UNCTAD was used to determine a framework of the determinants for FDI. The determinant framework as proposed by UNCTAD was used to evaluate the extent and importance of each determinant for FDI. This included the FDI policy framework, business facilitation measures and economic determinants (Market seeking, Resource seeking and Efficiency seeking). The competitiveness of South Africa was evaluated using the IMD WCY measurement. The IMD ranking of South Africa declined after 1994 and then stabilised. The trend of the UN HDI was detailed and the negative effect of HIV/AIDS on life expectancy could clearly be identified. The examination of the FDI inflow to South Africa during the period 1994 to 2000 showed that it did not reach anticipated levels. No correlation between competitiveness and FDI inflow could be found for South Africa. Brazil was selected as a benchmark for South Africa due to its similar social, political and economical structure. Brazil succeeded in attracting substantial FDI inflows after 1994 when its economy was stabilised. Brazil's ranking in the IMD WCY improved during the period from 1994 to 2000. The UN HDI rating for Brazil has improved throughout the past 25 years. HIV/AIDS has no effect on the forecasted national life expectancy figures due to the low infection rate in Brazil. A strong correlation between competitiveness and FDI inflow was found for Brazil. As the competitiveness ranking improved, the FDI inflow into Brazil increased and Vice versa. South Africa and Brazil were compared according to the relative strength of determinants to attract FDI, the strength of each competitiveness indicator and overall competitiveness ranking. South Africa compared very well with Brazil in terms of the FDI policy framework as well as the FDI business facilitation measures. In terms of efficiency seeking FDI, South Africa exceeded Brazil in the strength of its productivity and physical infrastructure, although Brazil was superior in skill level and scientific knowledge of the population. Resource seeking determinants are not strong in both countries. Brazil has an advantage over South Africa in that its population of 160 million is attractive for market seeking FDI. When the FDI inflow per capita was compared between South Africa and Brazil, the poor performance of South Africa was evident. Brazil also outperformed South Africa in terms of the IMD World Competitiveness Yearbook ranking. The IMD uses empirical data as well as data collected through surveys of business people in the ranking process. The survey data capture the perceptions of a country held by potential investors. Often perceptions override empirical data during the investment decision. The reason for South Africa's poor FDI inflow performance during the period 1994 to 2000 is difficult to resolve. The benchmarking with Brazil showed that the strength of the determinants (excluding market seeking) was on par with Brazil. The conclusion was made that the importance of various FDI determinants varies between regions of the world. Investment decisions involving Africa are made differently than in for example South America. UNCTAD data showed that resource seeking (oil & petroleum) FDI determinants with a high reward ratio was the only reaIly strong attraction for investment in Africa. The negative perceptions of Africa including civil unrest, famine and economic instability continue to influence the FDI inflow to South Africa. Although efficiency seeking together with a FDI policy framework and business facilitation measures attract FDI to a country in South America (Brazil), it is not sufficient to attract FDI to a country in southern Africa (South Africa). South Africa must change the international perceptions of the continent by creating a positive investment climate throughout Africa through strong, responsible leadership. The government must expand the knowledge and skill level of the population beyond basic education to enable them to participate in the international information and technology marketplace. Huge investments are required to create a culture of learning and self improvement in the population of South Africa. A high level of skills and knowledge will attract efficiency seeking FDI. / AFRIKAANSE OPSOMMING: Die doelwit van hierdie studie is om die verhouding tussen die internationale mededingendheid van 'n land en direkte buitelandse investering in die land te ondersoek. Suid-Afrika benodig direkte buitelandse investering om die ekonomie te stimuleer met die doel om werkloosheid te verminder en die lewenstandaard van die bevolking te verhoog. Na die demokratiese verkiesing van 1994 en die vreedsame oorgang tot 'n veelparty regering was daar groot verwagtinge van substansiële buitelandse investering. Die data van die IMD se World Competitiveness Yearbook (WCY) is gebruik om mededingendheid te evalueer. Die Verenigde Nasies se Human Development Index (HDI) is gebruik om die vordering van menslike ontwikkeling te bepaal. Die World Investment Report (WIR) van UNCTAD se raamwerk van determinante vir direkte buitelandse investering is gebruik om die omvang en belangrikheid van elke determinant te bepaal. Die UNCTAD raamwerk sluit die buitelandse investeringsbeleid, die besigheidsfasiliteringsmaatstawwe en ekonomiese determinante (markgedrewe, natuurlike brongedrewe en effektiwiteitgedrewe ) in. Die mededingendheid van Suid-Afrika is geëvalueer op grond van die IMD WCY proses. Die Suid-Afrikaanse posisie op die IMD ranglys het na 1994 verswak, maar daarna gestabiliseer. Die negatiewe effek van MIV/VIGS op die lewensverwagting van die bevolking is duidelik sigbaar in die tendens van die Verenigde Nasies se HDI vir Suid-Afrika. Die direkte buitelandse investeringsinvloei (1994 - 2000) na Suid-Afrika het nie aan die verwagtinge voldoen nie. Daar kon geen korrelasie tussen mededingendheid en buitelandse investering vir Suid-Afrika gevind word nie. Brasilië is geselekteer as 'n maatstaf vir Suid-Afrika as gevolg van die sosiale, politieke en ekonomiese oorenkomste tussen die lande. Brasilië het daarin geslaag om grootskaalse buitelandse investering te lok nadat sy ekonomie in 1994 gestabiliseer het. Brasilië se posisie op die IMD ranglys het gedurende die periode 1994 tot 2000 verbeter. Die Verenigde Nasies se HDI syfer vir Brasilië het verbeter gedurende die afgelope 25 jaar. Aangesien die MIV/VIGS besmettingsyfer baie laag is in Brasilië, het dit geen effek op die lewensverwaging van die bevolking nie. 'n Sterk korrelasie is gevind tussen mededingendheid en buitelandse investeringsinvloei na Brasilië. Soos Brasilië se posisie op die IMD se mededingendheidsranglys verbeter het, het buitelandse investering terselftertyd toegeneem en vice versa. Suid-Afrika en Brasilië is vergelyk in terme van die relatiewe sterktes van die determinante om buitelandse investering te trek, die sterkte van elke mededingendheidsindikator en algehele posisie op die IMD se mededingendheidsranglys. Suid-Afrika het baie goed vergelyk met Brasilië in terme van die direkte buitelandse investeringsbeleidsraamwerk asook die besigheidsinvestering en fasiliteringsmaatstawwe. In terme van effektiwiteitsgedrewe direkte buitelandse investering, het Suid-Afrika vir Brasilië geklop op die vlak van werkerproduktiwiteit asook die beskikbare infrastruktuur. Determinante vir natuurlike hulpbrongedrewe direkte buitelandse investering is nie sterk in enige van die twee lande nie. Brasilië het die verdere voordeel dat sy bevolking van 160 miljoen markgedrewe direkte buitelandse investering lok. Die vergelyking van direkte buitelandse investering për kapita tussen Suid-Afrika en Brasilië het getoon dat Suid-Afrika in hierdie opsig swak gevaar het. Brasilië het ook beter gevaar in terme van die IMD se mededingendheids ranglys. Die IMD gebruik empiriese data sowel as data van meningsopnames van sakeleiers. Die meningsopname data weerspieël die persepsie van sakeleiers oor 'n land. Dikwels kan persepsies deurslaggewend wees tydens die keuse van 'n belegging. Die rede vir Suid-Afrika se lae buitelandse beleggingsinvloei tydens 1994 tot 2000 is moeilik om te bepaal. Die vergelyking van Suid-Afrika met Brasilië het getoon dat die meederheid determinate van Suid-Afrika op standaard is. Die gevolgtrekking is gemaak dat die belangrikheid van determinante vir buitelandse investering tussen lande verskil. Beleggingsbesluite vir Afrika word anders gemaak as byvoorbeeld in Suid- Amerika. UNCTAD toon aan dat natuurlike hulpbroninvestering (olie en petroleum) met 'n hoë winsverhouding, die enigste sterk determinant vir belegging in Afrika is. Die negatiewe persepsies oor Afrika (onluste, hongersnood en ekonomiese onstabiliteit) beïnvloed steeds die invloei van buitelandse belegging na Suid-Afrika. Alhoewel doeltreffenheidsgedrewe buitelandse investering saam met 'n investeringsbeleidsraamwerk en besigheidsfasiliteringsmaatstawwe voldoende is om buitelande beleggings te lok na 'n land in Suid-Amerika (Brasilië), is dit nie die geval vir 'n land in Suider-Afrika (Suid-Afrika) nie. Suid-Afrika moet die internasionale beeld van die Afrika kontinent verander deur 'n positiewe beleggingsklimaat dwarsdeur Afrika te skep. Dit kan bewerkstellig word deur sterk, verantwoordelike leierskap in Afrika deur Suid-Afrika. Omdat basiese opleiding onvoldoende is, moet die regering die kennis en vlak van vaardighede van die bevolking uitbrei. Dit sal die bevolking in staat stel om deel te neem aan die internasionale mark vir informasie en tegnologie. Groot beleggings is nodig om 'n kultuur van kundigheid en selfverbetering onder die bevolking van Suid-Afrika te vestig. 'n Hoë vlak van vaardighede en kennis sal doeltreffendheidsgedrewe buitelandse investering na Suid-Afrika lok.

published_or_final_version / Public Administration / Master / Master of Social Sciences

This research focused primarily on certain bilateral agreements as well as relevant multilateral agreements that govern the world's investment system. Attention is given to governance in the world of foreign direct investment and the aims and objectives of the integration initiative, as well as to the centrality of investment law in the scheme. The role of investment and the effect this have on the development of Africa is also a focal point of this paper. The central objective of the integration initiative is also looked at against the backdrop of investment-rating agencies and investment flows around the world.

This study examined economic and government policies of South Africa on the one hand and that of Cameroon on the other hand. The focus was on specific periods after democratisation of both countries. For South Africa from 1994-2004 and for Cameroon from 1992-2004. Their comparatives economic strength in the face of foreign direct investment flow and the impact of government in attracting foreign direct investment was measured.

This thesis focuses on Foreign Direct Investment (FDI) in Angola and on constraints encountered by investors. It discusses the new Investment Law, resulting from a comprehensive law reform in 2003, as well as investment incentives destined to attract FDI into the territory, furthermore: the legal definitions of FDI and of &ldquo / Investor&rdquo / the Angolan private international law / the main constraints (investment barriers) encountered by investors, after and before entering the Angolan territory / the legal protection afforded to investors, and some examples of FDI and their implications in Angola.<br /> <br /> The author also analyses investment and intra-trade within the Sub-Saharan region, Angola under modes 3 and 4 of GATS, and other aspects of foreign (as well as private) investment, including on what has been done and what should still be achieved under the SADC Trade, Finance and Investment Protocol from 2005 onwards. This analysis, it is hoped, will contribute to the better understanding of the implications and benefits of FDI in Angola, considering the recent increase of inflows of FDI, as well, as to what extent and how the Government should continue to control and direct, as well as encourage FDI. To conclude, the impact (positive -negative) of FDI in the Angolan society, economy and for the environment will be discussed. Together with the chapters describing the legal framework for FDI, these parts are intended to provide a better insight into the legal, economic and social background for investing and for doing business in Angola, and what type of protection investors can expect from the country, whilst information and academic materials on this subject matter continue to be scarce and difficult to access.

The aim of this examination was to identify those evolving trends that are common to multilateral agreements some of which have been entered into by African developing countries, bearing in mind the debates and position of African developing countries. The study also aimed at examining the effects of these regulations on African countries especially with key provisions and the kinds of rights and obligations they confer on investors as well as the host country. As there is a need to create a balance between the interest of the host nation and the investor, the study also aimed at identifying if those evolving common trends can be used to establish a guideline for a standard bilateral investment treaty or on the other hand whether they can be used as a template for a multilateral agreement on investment.

M.Phil. (Mineral Economics) / The energy crises in the seventies and eighties had led to an awareness in the world's business community about the profit potential in the energy mineral supply market. All the sectors in this industry came under scrutiny, also the coal export sector. This awareness and rising interest in the world's coal export market caused amongst others, two major developments : a) a significant rise in investments in coal exporting ventures b) a higher expectation by shareholders with respect to capital returns and future growth Most companies participated in this expansion campaign, and committed resources to achieving the higher objectives. The downturn in'the world's economy , and the resultant diminished demand for energy minerals, caused the coal export market to come under pressure. The long lead time existing in the establishment of mining projects, and the fact that mines under construction cannot be mothballed until times improve, also contributed to the over-capacity situation that eventuated in the coal export industry worldwide. Many companies faced a battle for survival, and participants in the industry had to re-appraise their long term strategies. Established coal producing companies had to determine which strategies would best answer their requirements : a) whether it be to divest from coal production b) whether they should diversify their operational base and many others...