Ours is a world out of balance. Of the six billion people living in the world today, one billion receive 80 percent of global income, while more than one billion barely survive on less than a dollar a day. And, while developed countries spend $600 billion a year on defense, and incur $300 billion in direct and indirect agricultural subsidies, they offer only $56 billion a year in aid to developing countries. Over the next 25 years, 50 million people will be added to the population of rich countries. But over the same period, about one and a half billion people will be added to the population of poor countries. Today, more than 2.9 billion peoplenearly half the world's populationare under the age of 25. Many of these young people will experience poverty and unemployment. Disillusioned with what they will see as an inadequate global system, many will leave their homes, and often their countries, to find work.
World Bank Group, The Challenge: Reducing Poverty, at http://www.worldbank.org/
progress/reducing_poverty.html (last visited Feb. 21, 2004); see also Thalif Deen Rich Nations Fail Aid Pledge to Poor, DAWN/The InterPress News Service, Nov. 7, 2003, available at http://www.ipsnews.net/interna.asp?idnews=20996.
Recent trends toward globalization of production and consumption patterns have led to a sharp increase in global FDI. At the same time, trade and investment liberalization has brought more developing countries into the globalized economy. This has led to a dramatic surge in FDI flows to developing countries, which increased fivefold from 1990 to 1995, and exceeded $100 billion in 1996. This increase went mainly to 12 large developing countries, in part reflecting their economic size. Thus, China alone received $167 billion between 1990 and 1996 (1996 prices). Already a significant part of the economy in many developing countries, FDI is likely to continue at high levels for the foreseeable future.
From 1995 to 1998, a Multilateral Agreement on Investment (MAI) was under negotiation within the Organization for Economic Cooperation and Development (OECD), a group of thirty of the worlds largest and most developed countries . . . . [M]any . . . developing states raised vocal objections to the negotiations. Human rights and other non-governmental organizations (NGOs) mounted a massive coordinated attack on the MAI. Over the course of 1998, the negotiations were suspended, and finally terminated, in the face of these objections but primarily because of critical differences between negotiating partners.
Glen Kelley, Multilateral Investment Treaties: A Balanced Approach to Multinational Corporations, 39 Colum. J. Transnatl L. 483, 484 (2001) (footnotes omitted).
The term sovereignty has been used in four different waysinternational legal sovereignty, Westphalian sovereignty, domestic sovereignty, and interdependence sovereignty. International legal sovereignty refers to the practices associated with mutual recognition, usually between territorial entities that have formal juridical independence. Westphalian sovereignty refers to political organization based on the exclusion of external actors from authority structures within a given territory. Domestic sovereignty refers to the formal organization of political authority within the state and the ability of public authorities to exercise effective control within the borders of their own polity. Finally, interdependence sovereignty refers to the ability of public authorities to regulate the flow of information, ideas, goods, people, pollutants, or capital across the borders of their state.
Id.; see also Rett R. Ludwikowski, Supreme Law or Basic Law? The Decline of the Concept of Constitutional Supremacy, 9 Cardozo J. Int'l & Comp. L. 253, 263 (2001).
In its first project in Côte dIvoire, MIGA issued two guarantees totaling more than $16 million to Touton SA of France for its equity investment and shareholder loan to Touton Côte dIvoire. The project involve[d] the acquisition and rehabilitation of three cocoa plantations and the construction of a factory to clean and bag cocoa beans. Once the rehabilitation is complete, the plantations are expected to produce more cocoa per hectare than the national average, partly due to the use of high quality seedlings and plant sheltering techniques. In addition, each plantation would be equipped with modern fermentation, drying, and packaging units. MIGA insurance covers the investments against the risks of expropriation and war and civil disturbance.
World Bank Group, Multilateral Investment Guarantee Agency, Political Risk Insurance 12 (2000), available at http://www.miga.org/screens/pubs/factsheet/Sector. pdf (last visited Apr. 29, 2004).
Current levels of aid [directed towards LDCs in Africa, for example], at 0.22 percent of annual GDP, fall far below the 0.7 percent target OECD countries pledged to meet. It is ironic that when African leaders are putting the right policies in place and showing results, overseas aid to Africa has fallen from $34 per person in 1990 to $18 per person in 1998. . . . [Meeting the 0.7 target] would make a difference [o]f $100 billion a year. It could make a profound difference in the number of people who die each year of preventable or treatable diseases. It is the right thing to do, for LDCs, for donor countries and for the world. Some advanced countries have met their ODA commitments of 0.7 percent of GDP; the rest must now step up and meet theirs
A New Compact to Meet the Challenge of Global Poverty, Speech at the Third United Nations Conference on the Least Developed Countries (May 14, 2001), at http://web.world-
Similarly, the Executive Board of the IMF conducts the IMFs day-to-day business. It is composed of twenty-four Directors (appointed or elected by member countries or by groups of countries) and the Managing Director (its Chairman). The quota shares owned by a country determines the number of votes it may cast. For example, the United States owns 17.14% of the Fund and has 371,743 votes whereas Japan owns 6.15% of the Fund and has 133,378 votes. See International Monetary Fund, IMF Executive Directors and Voting Power, at http://www.imf.org/external/np/sec/memdir/eds.htm (last modified Apr. 16, 2004).
Canada and China have exactly the same quota. The Chinese quota was increased after the incorporation of Hong Kong to be exactly the same size as Canadas . . . . [Note, however, that] China is a much bigger economy than Canada.
Now compare Netherlands, Belgium, and Switzerland, whose quotas are all bigger than Brazils and Mexicos. But Brazil and Mexico are much bigger than the Netherlands, Belgium, and Switzerland . . . . Another amazing example: Belgium has a 74-percent bigger quota than Mexico, but Mexicos foreign trade alone is bigger than Belgiums GDP.
Id. This formula also gives Denmark a bigger quota than Korea despite Koreas status as larger, more important economy. The most prominent comparison shows that the European quotas are larger than those in Asia, even though Asias purchasing power parity is 21.5% and Europe weighs in at below 3%. Id.