EKONOMSKA RAVNOTEŽA ULAGAČKOG ODNOSA PRED IZAZOVIMA ODRŽIVOG RAZVOJA

Abstract

In modern business conditions, foreign direct investment has become a key lever not only for globalization and the connection of world capital flows, but also for the acceleration of economic development of countries. Countries whose economies require rapid recovery and exit from cyclical crisis movements have increasingly resorted to creating an investment environment that is conducive to the arrival of foreign capital in recent years. Such action implies that the countries receiving capital have guaranteed foreign investors numerous benefits, privileges, a safe and reliable legal regime, minimizing political risks and economic security. One of the important stimulating elements of the incentive policy of countries receiving capital, especially underdeveloped and developing ones, is the implementation of environmental policy in a less rigorous and demanding manner. Respect for legal regulations in the field of environmental protection and human rights is one of the basic obligations of all states, members of social communities and economic entities, while foreign investors have an obligation to respect not only domestic and international environmental standards, but also those stipulated in the country in which they are implementing their investment project. Less stringent environmental regulations also imply lower operating costs for investors, and therefore lower not only initial, but also ongoing investments, and foreign investors will more easily choose to do business in such investment destinations. However, in addition to the influence of environmental regulations on the decision to invest by a foreign investor in a country receiving capital, a particularly important issue is the nature of such investments and their feedback effect on the overall sustainable development of the countries receiving capital. Considering the particular relevance of the challenges posed by sustainable development today and the challenges it poses to both states and investors, the paper will also focus on preserving the economic balance between the foreign investor and the country receiving the capital.