Achieving Sustainable Justice through Foreign Investment: A Narrative Synthesis

Abstract

Foreign Direct Investment (FDI) remains a powerful driver of economic growth, yet its potential to foster equitable and enduring development is often unrealized. This paper argues that achieving sustainable justice—the equitable and enduring distribution of economic, environmental, and social benefits—requires the deliberate harmonization of investment law, human rights obligations, and governance mechanisms. Drawing on international frameworks such as the United Nations Guiding Principles on Business and Human Rights (UNGPs; United Nations, 2011), OECD Due Diligence Guidance (OECD, 2018), and the International Finance Corporation (IFC) Performance Standards (IFC, 2012), this analysis explores how legal and policy reforms can reconcile investor protection with social and environmental responsibility. Through comparative case studies—including Philip Morris v. Uruguay (ICSID, 2016) and Vedanta v. Lungowe ([2019] UKSC 20)—and an examination of regional reforms in Saudi Arabia (Saudi Ministry of Investment, 2023), the United Arab Emirates, Morocco (World Bank, 2021), Egypt, and Jordan, the paper demonstrates a paradigm shift towards embedding justice in investment governance. It concludes with policy recommendations for aligning FDI with the Sustainable Development Goals (SDGs) and the imperatives of sustainable justice.