Review article
https://doi.org/10.31141/zrpfs.2019.56.133.719
Limitation of the regulatory function of state by way of international investment contracts
Mahir Muharemović
orcid.org/0000-0001-9338-7512
; Konrad Adenauer Fondacija, Bukurešt
Abstract
The process of globalization puts states, and therefore their administrations, against new challenges, which can only be overcome by the mutual cooperation of states and other subjects of international law. The interdependence of these entities in the global economic race and the struggle for investment has also produced new forms of administrative regulation, primarily with the emergence of interstate bilateral and multilateral investment contracts, which essentially affect the administrative and legal sphere of the state, limiting both, the scope and quality of the state’s regulatory capacity. Nevertheless, one cannot ignore the fact that states continue to be a personification of power.
On the other hand, the restrictions to the autonomy of states in making decisions for the benefit of the public interest are particularly visible in international investment treaties. International arbitrations, which are the forum for dispute settlements arising from the International Investment Treaties, assess the appropriateness of the regulations by the state in order to protect the public interest. International investment arbitrations, unlike the previous international tribunals and courts, have the role of a quasi-legislator, and this role is made possible by the wide and imprecisely formulated provisions of investment contracts, which allow arbitrations a great deal of interpretation and discretionary assessment. All this seriously restrict the regulatory capacity of the state.
Keywords
sovereignty; regulation; state; international investment treaties; international investment arbitration
Hrčak ID:
225703
URI
Publication date:
27.9.2019.
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