Contesting the Legal framework for International Investment

Yenkong Ngangjoh Hodu

International Economic Law Dept. - Law School - University of Manchester - UK

Abstract

Traditionally, Bilateral Investment Treaties (BIT) are primarily concerned with two forms of issues. The first is liberalisation and promotion of investment while the second deals with protection of such investment in host states[1]. The economic rationale behind the former is that investment liberalisation will effectively usher in economic efficiency. The main objective of the provision is to facilitate entry by foreign investors as well as enhance their operations in host states. The second set of provisions is to protect investment against host government actions. These two groups of provisions are very much visible albeit in different forms in almost all BITs. Yet, despite this entrenched historical practice mostly supported by capital exporting countries; the last few decades have witnessed unprecedented contestations against many of the aspects of BITs amongst traditional host countries, academics and in some instances capital exporting countries. The purpose of this presentation is to provide a brief, yet, critical analysis of the current international legal framework governing foreign investment and some of the key areas of this framework that is consistently under challenge for reform. It will start with the current framework, and then, some of the substantive content of the framework and will end with again another brief highlight of some of the issues that ought to be considered in any reform initiative.

Keywords

Contesting the Legal framework for International Investment