Analysis of the OIC Investment Agreement of 1981

A critical analysis of the OIC Investment Agreement of . The political goals, the aspirations and the greatest benefactors from it

Economic cooperation is a foundational pillar for society development. The ability for capitalism to unlock human potential is of particular benefits not only to domestic countries but partner countries as well. Globalization has only exacerbated these benefits as innovations can quickly be spread, utilized and leveraged around the world. One method that can help foster strong relationship with neighboring countries is through investment and trade agreements. Many of the worlds largest nations have extensive trade agreement with their neighboring countries, the most know of which is the agreement between the Untied States, Canada, and Mexico. In each instance, all parties involve benefit from coordinated and seamless activity. Here, the activity often leads to economic development and prosperity for all countries involved. This indirectly also help prevent conflict between neighbors as each economy is deeply entrenched and interconnect with each other. The OIC Investment Agreement of 1981 is no different in this regard. Here, the investment agreement provides a comprehensive framework that encourage cooperation of 29 OIC member states. This agreement helps to provide legal protections of investments made by member states in the territories of other member states. Although a very good start the agreement does have some drawbacks (Walid, 2013).

From the positive perspective, the agreement provides a comprehensive framework designed to protect and safeguard the investment interest of OIC member states. When reviewing the agreement, this a critical element and distinction that should help improve the overall number of investments within each member country. By safeguarding these investments, it encourages risk taking and investment by foreign entrepreneurs. This ultimately helps to improve overall economic activity through higher amounts of capital being deployed with member nations. This capital can ultimately be used to help improve the overall quality life all member nations collectively. In this instance, an innovation that occurs in once nation can easily spread, grow, and be deployed in other nations without fear of having its innovations stolen or nationalized. This encourages investment as investors are now much more confident that they can potentially receive the return due to them for taking on the risks associated with creating the product, good, or service. Likewise, this also helps to reduce both economic and military conflicts between rival nations. Although there is no full proof solution to avoid conflicts, but having an agreement that binds all parties together helps the member nations to work collective and constructively to resolve their overall disputes. An increase in economic cohesion ultimately results in the ability for more collaboration between countries as it relates to product development and technological innovations.