Evolution of the International Regulation of Foreign Direct Investment in Developing Countries: the importance of the ICSID Mechanisms and BITs

Abstract

The rule of law, in the context of economic development, is important not only as a means but as an end in itself. To ignore the role of law and the rule of law in discussing the development of the country’s economy - is impossible, as well as the importance of FDI - for the development of the country. Developing countries need to ensure a speedy and reliable settlement of foreign direct investment disputes. Countries with emerging economies that have been able to find some investment but have failed to grow local investment should strive to maintain a more balance between offering safeguards and regulating trade in FDI while encouraging development. The states should continue to attract investment while enhancing the local one. The purpose of this article is to explain the importance of international legal mechanisms for the protection of foreign direct investment in the country’s development. In particular, assess the impact of the ICSID Convention and bilateral investment treaties on international legal regulations in developing countries.