Evolution of International Investment Law: Towards a Stable Global Regime

Abstract

In recent years, investment flows worldwide have rapidly increased, and along with this there has been a regulatory development on the international level that includes the creation of more than 3000 bilateral and regional treaties. These treaties share similar substantive standards and dispute settlement mechanisms. For this reason, this legal framework has been conceptualized as an emerging global investment regime, which is generating constant tensions between states. The creation of this emerging regime was not a spontaneous development, on the contrary, it is the outcome of a complex evolutionary process that has developed through the history of International Law. This article analyzes the history and evolution of International Investment Law, and identifies the key elements of the current emerging regime that shall be considered in the construction of a comprehensive regulation of foreign investments.