6TH INTERNATIONAL ISTANBUL CURRENT SCIENTIFIC RESEARCH CONGRESS
INVESTMENT TREATIES AND ECONOMIC SOVEREIGNTY IN THE DEVELOPING WORLD: REFORMING A FLAWED SYSTEM
Yayıncı:
Liberty Publications
The global investment treaty regime stands at a critical juncture, caught between the imperatives of economic globalization and the sovereign rights of developing nations to pursue equitable development. This paper interrogates the entrenched tensions between foreign investment frameworks and national self-determination, arguing that the current system disproportionately compromises the regulatory autonomy of developing states while promising contested economic gains. Through a critical analysis of bilateral and multilateral investment treaties, we trace the evolution of these agreements from postcolonial economic instruments to contemporary mechanisms that enable transnational capital to challenge public interest policies via controversial investor-state dispute settlement (ISDS) tribunals.Drawing on comparative case studies across Latin America, Africa, and Southeast Asia, the research reveals a paradoxical landscape: while certain treaties have catalyzed infrastructure development and technology transfer, others have precipitated costly legal battles over environmental protections, labor reforms, and public health measures. The study particularly highlights how ISDS mechanisms—often operating through opaque arbitration panels—have enabled corporations to claim billions in damages against states exercising their sovereign right to regulate. Beyond diagnosis, this work charts pathways for systemic reform. We evaluate emerging models that recalibrate risk allocation, enhance transparency in dispute resolution, and embed carve-outs for human rights and climate obligations. The analysis demonstrates that renegotiated treaties incorporating differential treatment clauses and sunset provisions could empower developing nations to attract capital without surrendering policy space.For policymakers and multilateral institutions, this research provides an evidence-based roadmap to transform investment governance. By prioritizing developmental sovereignty and redistributive justice, reform efforts can reconfigure transnational investment law into a tool for sustainable progress rather than a constraint on it. The stakes extend beyond legal frameworks: this is a battle for the very right of nations to define their economic futures.
