About the Book:
The debate on the implications of international investment treaties and the investor-state dispute settlement system has been intensifying and widening. There is a growing consensus that the investment protection regime is flawed and needs to be reformed. States, both developed and developing, have been considering various reforms and potential alternatives, including through renegotiation or termination of investment treaties. This situation has been primarily triggered by the states’ increasing exposure to claims by investors, who are turning to investor-state arbitration to challenge a wide range of government measures. These investor-state dispute settlement cases have increasingly undermined the states’ right to regulate in the public interest and constrained their ability to use foreign direct investment for industrialization and development.
This book discusses the relationship between foreign direct investment, investment agreements and economic development. It examines the experiences of five developing countries reviewing their approach to international investment agreements and seeking alternatives in this area, including South Africa, Indonesia, India, Argentina, and Ecuador. Through reviewing investor-state dispute settlement cases, the book highlights how investment protection rules and the way they have been interpreted by arbitral tribunals have undermined the states’ right to adopt measures to protect public health and challenged the use of policy tools essential for industrialization. The book also discusses options for rethinking investment-related dispute settlement, including the option to reform the arbitration rules that apply to the disputes, and poses the question “What should investment-related dispute settlement look like if we were to start anew?”.