The Multilateral Agreement on Investment (MAI) and Public/Social Services

This paper explores the potential impact of the Multilateral Agreement on Investment (MAI) upon public and social services.  The MAI is currently being negotiated by officials from the 29 member countries of the Organization for Economic Co-operation and Development (OECD) in Paris.  The purpose of the is to remedy the supposed weaknesses of the World Trade Organization agreement with respect to investment issues.  The basic intent is to prohibit all “discrimination” against foreign investors through the key principle of national treatment, and to make government decisions to regulate or control foreign investment subject to appeals by foreign governments, investors and companies.  The author argues that the MAI could give foreign investors the right to establish for-profit enterprises in social services and health care – particularly in areas of mixed public/private delivery.  The agreements represent a potential threat to public delivery in these key service areas.  Moreover, the MAI could allow foreign investors to challenge government support of nonprofit providers of public and social services.

ISBN – 1-895796-87-3