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Vanderbilt Journal of Transnational Law

Authors

Matthew Nick

First Page

577

Abstract

The oil and natural gas reserves under the Caspian Sea have sparked the interest of international investors and oil firms. The political, economic, and social turmoil in the five countries bordering the Caspian Sea, however, pose significant challenges for effective regulation of multinational interaction with the five Caspian states. A joint-effort approach to regulation involving the World Bank, multinational enterprises, and the individual Caspian states' governments poses the most functional and efficient means of instituting international oversight. Such a tripartite structure connects the fortunes of all the parties and provides safeguards against default by any single entity. A mutually beneficial relationship may be established whereby Caspian states benefit from receiving loans at below-market interest rates and establishing sound relationships with multinational enterprises and developed economies. This tripartite structure promotes accelerating the sustained development of the Caspian states while introducing international norms of corporate behavior. This Note addresses the benefits, challenges, and potential that this joint-effort approach to regulation of multinational enterprises holds for the Caspian region.

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