Although it is less likely for a developed country to engage in conduct that is detrimental to the foreign investors, as the catastrophic event of 9/11 presented, in the realm of political risks, unless PRI is in place, regardless of whether the host country has a low-political risk profile or not, the foreign investors may not act with great confidence and may lose out on profitable ventures. PRI contracts serve not only as remedy mechanisms in themselves, but also as vehicles for mutually beneficial exchanges between countries, poverty reduction and bringing the means supposedly necessary for the construction, improvement and welfare of the developing countries. As individuals, somehow, we are all insureds and do not often consider the furtherance of the insurance practice after indemnification. Although PRI takes much of the financial burden off foreign investors’ shoulders, one may need to remember that insurance does not prevent the risk-occurring, and the insurer cannot immunize itself from the sovereign. In other words, sooner or later someone needs to confront the sovereign.

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Conclusion

  • Özge Tosun

摘要

Although it is less likely for a developed country to engage in conduct that is detrimental to the foreign investors, as the catastrophic event of 9/11 presented, in the realm of political risks, unless PRI is in place, regardless of whether the host country has a low-political risk profile or not, the foreign investors may not act with great confidence and may lose out on profitable ventures. PRI contracts serve not only as remedy mechanisms in themselves, but also as vehicles for mutually beneficial exchanges between countries, poverty reduction and bringing the means supposedly necessary for the construction, improvement and welfare of the developing countries. As individuals, somehow, we are all insureds and do not often consider the furtherance of the insurance practice after indemnification. Although PRI takes much of the financial burden off foreign investors’ shoulders, one may need to remember that insurance does not prevent the risk-occurring, and the insurer cannot immunize itself from the sovereign. In other words, sooner or later someone needs to confront the sovereign.