Investor-State Dispute Settlement and its Content in Bilateral Investment Treaties: An Assessment

Abstract

The traditional patterns of investment were based on mutual understanding not as part of any specific agreement but the evolution of BIT and its defining features since 1959 has created the clod of fear and suspicion to the host state. The state has started initially giving wider space to the foreign investor even in forcing the regulatory chill practices in part of the investment compliance. The lower the domestic compliance by the host state to the foreign investor were proven one of valid reason for the attraction of foreign investment in most of the developing and African continent. The less regulatory regime will have slower compliance and this has led to the foreign investment as need of the time. The state has started losing their sovereign space against the international investment practices and their presence has started manipulating most of the domestic policies across region and eventually resulted into asymmetrical development in entire investment governance. The state and specific the home state always been challenges based on the proviso and terms conditions as part of the bilateral investment treaties. The content and the subject of the dispute in the investment treaties are of multi colored. Hence, this article has analyze the various subject matters of dispute as part of the violation or infringement of the bilateral investment treaties by the home states.