The Political Character of Investor-State Disputes

Abstract

International investments play an important role in the economic growth and development of all states, specifically the underdeveloped ones. That’s why these states endeavor to attract foreign direct investments to their territories. However, the investment contracts which are concluded between these states and foreign direct investor initiate a lot of conflicts which, in turn, lead to disputes, here and after called the Investor-State Disputes. Although these disputes are economic in nature, as their subject matter is investment, they have a political nature. This research is concerned with the political attributes of the Investor-State Disputes. In this context, this research will, first, shed light on the nature of parties of these disputes; second, it will explain some of the clauses which are included in the investment contracts and curb, one way or another, the sovereignty of states and finally, the negative impact of these disputes on international relations.

Keywords: Diplomatic Protection-Incorporation of Law- International Subjects- Investor-State Disputes- Marginalization of Law- Stabilization clauses- State Sovereignty.