Global Business, Local Law: The Indian Legal System as a Communal Resource in Foreign Investment Relations -- Introduction

Abstract

This is the introductory chapter to a volume which establishes a theoretical framework for exploring the role of host state legal systems (courts and bureaucracies) in mediating relations between foreign investment, civil society and government actors. The volume then demonstrates the application of that framework in the context of the south Indian city of Bengaluru (formerly Bangalore). Drawing on the 'law-and-community' approach of Roger Cotterrell, the volume identifies three mechanisms through which law might, in theory, ensure that social relations are productive: by expressing any mutual trust which may hold actors together; by ensuring that actors participate fully in social life; and by coordinating the differences that hold actors apart. Empirical data reveal that each of these legal mechanisms is at work in Bengaluru. However, their operation is limited and skewed by the extent to which actors use, abuse and/or avoid them. Furthermore, these legal mechanisms are being eroded as a direct result of the World Bank's 'investment climate' discourse, which privileges the interests and values of foreign investors over those of other actor.

Keywords: foreign investment, community, investment climate, World Bank, Bangalore, India