The last four decades have seen an enormous expansion in the number of international investment treaties (particularly bilateral investment treaties) and in investment treaty-based arbitrations and awards. Traditionally made between capital-exporters and capital-importing states (that is, along a North-South axis), such treaties generally assure investors of one signatory state (the "home state") protection on the basis of pre-determined standards in the other signatory state or states (the "host state"). Such treaties also provide for compensation in case of breaches of these standards, and give investors recourse to arbitration in case of disputes. Given these provisions alongside arbitral treaties themselves, in recent decades, there have emerged a substantial number of arbitral decisions interpreting the treaties in question, decisions that are far more protective of, and solicitous of, investors' arguments than many of the treaty-signatory states may have anticipated or intended.
Banking and Finance Law | Law
Center on Global Legal Transformation
Freya Irani & Katharina Pistor,
Expectations as Property: Histories, Contexualizations, Critiques,
UCLA L. Rev. Discourse
Available at: https://scholarship.law.columbia.edu/faculty_scholarship/2853