On the evening of 22 January 2018, the Governor of Puerto Rico announced the complete privatisation of the island’s power utility. The public statement came four months after hurricanes Irma and Maria, which devastated the archipelago leaving thousands of people homeless or dead and over 40 percent of the population without access to electricity and running water. Puerto Rico’s energy system was crumbling long before the tropical weather systems of September 2017 hit the archipelago. The hurricanes only laid bare the unsustainable conditions of the extremely expensive and fossil fuel-generated electrical power regime.
How fair is the investment arbitration system in Latin American and Caribbean (LAC) countries? Are investor-state disputes balanced between national and corporate interests? LAC countries are among the most affected by the investment arbitration system, representing 28.6% of all known investor-state disputes around the world. In particular, Argentina, Venezuela, Mexico, Ecuador, Bolivia and Peru account for 77.3% of the total number of claims against LAC countries. Analysis shows that the system so far heavily favours corporate interests. Investors have won in 70% of the cases brought against LAC countries. As a result, LAC States have already had to pay foreign companies 20.6 billion USD, which could cover Bolivia’s budget for health and education for four whole years.