ABSTRACT

Historical explanation or exploration is gaining traction among scholars of international investment law (ILL) to understand the field properly, find evolutionary connections, address power imbalances, trace a problem’s genealogy, and explain their recommendations for reforming the current system. The Third World Approaches to International Law (TWAIL) can be a useful method to understand critical aspects of international investment law from the perspective of the Global South. One of the mainstream historical accounts of IIL describes that its central principles developed progressively and incrementally since the 19th century from challenges faced by foreign investors, mainly from capital-exporting states. However, another historical account on IIL finds its roots in European imperial expansion in the 17th century. As international investment law has evolved, arbitration has become politically contentious even in states once supportive of such agreements. While there is consensus on the need for reform, the lack of historical evaluation of the failures of these agreements poses a challenge to reform initiatives. In order to ensure effective results, it may be necessary to modify laws concerning state interactions to promote greater equality and reduce factors that undermine theoretical state equality.

keywords

international investment law | evolution of international investment law 
| imperialism | IIL | BIT | ICSID | TWAIL

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