Question

Expropriation Distinctions. Answer the following: a. What is the difference between expropriation and creeping expropriation? b. What is the difference between direct and indirect expropriation?

Answer 1

A. Expropriations and Creeping expropriations Expropriation is a step by step process or it take place incrementally. It does not happens at a single time. It is an act done by government by claiming the private properties of person without the wish of the owner for the benefit of overall public in US expropriation take place to build highways railroads and airports.

Creeping expropriation is slow and it reduces the rights of a foreign investor on its investments by diminishing the value of the Investments. The diminishing of value of the investment may occur by removing the property rights from the foreign investor through the actions of government it includes in greasing detection rate reducing the value of the project etc. It is a recognised International practice.

B.Direct and Indirect expropriations

direct expropriation happen when the state directly transfer the title of the property legally to this state through nationalisation.

indirect expropriation includes all the measures taken by the authority which have enig ative effect on private foreign investment without any consideration exclude state measures taken in response to the illegal actions by the investor