CIAO DATE: 04/2014
December 2013
Columbia Center on Sustainable Investment
In countries where policies protecting private investor rights are more susceptible to change, substantial minority state ownership in a project can substantially decrease overall investment project risk. Sometimes, some state ownership in a project is just the thing to keep the state from changing important terms in the original agreement to the detriment of private co-investors.
Resource link: Minority rules: State ownership and foreign direct investment risk mitigation strategy [PDF] - 88K