Taking the Expectations of Local Communities Seriously: A Fresh Start for Foreign Investment Governance?
Forthcoming in INTERNATIONAL ECONOMIC LAW: NEW VOICES, NEW PERSPECTIVES (Akbar Rasulov & John Haskell eds. 2018).
Posted: 23 Mar 2018 Last revised: 26 Dec 2018
Date Written: March 20, 2018
The international investment regime is one of the most controversial areas of international law. Although there are a number of proposals to reform this regime, most of them are centred on ensuring states’ right to regulate. This article claims that this approach overlooks important political economy challenges. By looking at foreign investor rights through the lenses of property law and theory, this article shows that the international investment regime privileges foreign investor expectations to the detriment of local actors. The risks of foreign investment exceed negative externalities as these projects can also undermine local goals and values. A successful reform, therefore, would begin by taking local expectations seriously.
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