[DEBATE] : (Fwd) Swarming the WB for Bolivia justice

[Patrick Bond]

PRESS RELEASE

863 CITIZEN GROUPS CALL ON WORLD BANK PRESIDENT
TO RESPECT BOLIVIA’S WITHDRAWAL FROM ARBITRATION COURT

European Telecom International case against Bolivia should be blocked

Independent review needed on investor-state arbitration,
human rights, and global poverty


Contact in Washington, DC:
Sarah Anderson, Institute for Policy Studies: 202 234 9382 x 227, email: 
saraha at igc.org

(January 15, 2008) More than 800 citizens groups from 59 countries on 
every continent will present a petition on Tuesday, January 15 to World 
Bank President Robert B. Zoellick, expressing concerns about the 
International Center for the Settlement of Investment Disputes (ICSID), 
whose Administrative Council Mr. Zoellick chairs.

Last May, the government of Bolivia became the first country in the 
world to withdraw from ICSID, citing the court’s record of favoring 
narrow corporate interests over the public good. That court is now 
refusing to respect the Bolivian government’s actions and allowing a 
case brought by a European telecommunications company to proceed.

The global petition reflects growing concerns around the world about a 
system of investor rights that undermines democracy and human rights. 
Many of the signatory groups first became aware of these problems 
through the notorious Bechtel v Bolivia case. In 2001, a subsidiary of 
Bechtel sued South America’s poorest country over a failed water 
privatization project. After five years of intense public pressure, the 
company dropped the case in 2006.

As noted in the petition, Bolivia is just one of several governments 
that are challenging the excessive investor protections in free trade 
agreements and bilateral investment treaties. ICSID is the most widely 
used mechanism for enforcing these rules.

Although the Bolivian government followed proper procedures in 
withdrawing from ICSID, a tribunal is scheduled to be formed soon to 
hear a case brought by Euro Telecom International (ETI), a company 
incorporated in the Netherlands whose owners include Telecom Italia and 
the Spanish Telefónica. ETI owns 50% of ENTEL, which provides more than 
60% of Bolivia’s telephone services.

The petitioners include 863 labor, environmental, religious, consumer, 
small farmer, human rights, women’s, development, and peace 
organizations from five continents. The Institute for Policy Studies, a 
Washington, DC-based research organization, was the initial drafter of 
the petition.

For complete copies of the citizen’s petition in:
English: ips-dc.org/reports/080115-boliviapetition-en.pdf
Español: ips-dc.org/reports/080115-boliviapetition-es.pdf
Italiano: ips-dc.org/reports/080115-boliviapetition-it.pdf
Portugues: ips-dc.org/reports/080115-boliviapetition-po.pdf
Français: ips-dc.org/reports/080115-boliviapetition-fr.pdf

For a detailed background report on the investor-state dispute system, 
see the IPS report Challenging Corporate Investor Rule: 
http://www.ips-dc.org/reports/070430-challengingcorporateinvestorrule.pdf

-- 
Sarah Anderson
Director, Global Economy Program
Institute for Policy Studies
Tel: 202 234-9382 x227
Email: saraha at igc.org
Web: www.ips-dc.org

Institute for Policy Studies
1112 16th Street, NW
Suite 600
Washington, DC 20036