Taking Local Expectations Seriously: A Fresh Start for Foreign Investment Governance?

Abstract

The international investment regime is one of the most controversial areas of international law. Although there are a number of proposals to reform this regime, most of them are centred on ensuring states' right to regulate. This article claims that this approach overlooks important political economy challenges. By looking at foreign investor rights through the lenses of property law and theory, this article shows that the international investment regime privileges foreign investor expectations to the detriment of local actors. The risks of foreign investment exceed negative externalities as these projects can also undermine local goals and values. A successful reform, therefore, needs to begin by taking local expectations seriously.