Host Governments' Legislative Acts and Unilateral Review of State Contracts in Spite of Stabilization Clauses: a Sovereign Right or Sovereign Wrong?
Article from: OGEL 3 (2009), in OGEL Student Special
(CEPMLP) Investment contracts are by their nature, binding on the parties, or suffice to say, intended to be binding. While host Governments are vested with sovereign rights over their resources and the right of governance, foreign investors on the other hand, are vested with investment protection rights; with the former's major interest to be economic benefit, while that of the latter to be basically to make profit. This suggests a clash of interests, necessitating a pragmatic need to give investment contracts a double-edged interface. Usually, ...