1. Reconciling IMF rules and international investment agreements: An innovative derogation for capital controls
- Author:
- Elizabeth L. Broomfield
- Publication Date:
- 09-2012
- Content Type:
- Policy Brief
- Institution:
- Columbia Center on Sustainable Investment
- Abstract:
- There is currently no universal framework governing capital controls. As a result, a conflict has arisen due to the different approaches taken by various international organizations and many international investment agreements (IIAs). In particular, the International Monetary Fund (IMF) -- established to manage the international financial system -- preserves national autonomy over capital controls when such measures are deemed necessary; in contrast, IIAs, and especially bilateral investment treaties (BITs) -- crafted primarily to protect investors -- typically do not allow for the imposition of restrictions on capital outflows associated with foreign investments for balance-of-payments reasons.
- Topic:
- Development, Economics, International Monetary Fund, Foreign Aid, Foreign Direct Investment, and Financial Crisis