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Review article

https://doi.org/10.2478/cirr-2019-0002

ISDS Regimes and Democratic Practice: Creating Conflict of Interests between Governments, Investors and Local Populations

Martin Karas ; University of Economics in Bratislava; Faculty of International Relations


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Abstract

The recent debate over the Investor-State Dispute Settlement (ISDS) regimes of international arbitration has resulted in concerted efforts aimed mainly at protecting the rights of states to regulate, improving transparency of proceedings and eliminating inconsistency in decision making of the tribunals. While the existing scholarly work frequently addresses issues of the relationship between the existing investment regimes and good governance in general, increased attention is rarely paid to the effects that investment arbitration has on democratic practice. The article applies an “action-based” approach to democracy, in order to analyse the role that the ISDS regimes play in exacerbating conflicts between the local populations, foreign investors and governments. The analysis leads to a conclusion that the ISDS regimes create incentives for the governments and foreign investors to disregard sound democratic practice. The article represents an attempt to move the discussion about the ISDS regimes away from the question of legitimacy of the regimes to the question of the impacts that the regimes have in practice.
ISDS Regimes and Democratic Practice: Creating Conflict of Interests between Governments, Investors and Local Populations

Martin Karas
University of Economics in Bratislava
Faculty of International Relations
martin.karas@euba.sk
ORCID: 0000-0002-9916-3074

Keywords

investor-state dispute settlement; investment arbitration regimes; democracy; regulatory chill.

Hrčak ID:

218979

URI

https://hrcak.srce.hr/218979

Publication date:

15.4.2019.

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