Intertwined paths of globalization and international investment law

Pages:85-99
SUMMARY

Purpose International investment law has become a powerful tool of global economic governance. With its global network of international investment treaties and effective arbitration mechanism, it has made an extraordinary leap from a relatively niche and underrated area of international law to one of the most prominent legal regimes. This paper aims to illustrate how the evolutionary trajectories ... (see full summary)

 
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Intertwined paths of globalization
and international investment law
Agata Ferreira
Faculty of Administration and Social Sciences, Warsaw University of Technology,
Warsaw, Poland
Abstract
Purpose International investment law has becomea powerful tool of global economic governance.With
its global network of international investment treaties and effectivearbitration mechanism, it has made an
extraordinary leap from a relatively niche and underrated area of international law to one of the most
prominent legal regimes.This paper aims to illustrate how the evolutionary trajectoriesof globalization and
internationalinvestment law have been intertwined.
Design/methodology/approach This paper follows the historical unfolding of international
investment law againstthe background of the globalization phenomenon, tracing the history of globalization
processes since the expansion of Europeaninterests and export of capital and the onset of the international
investmentlegal framework.
Findings The evolution of globalization and internationalinvestment law has always been intertwined
and co-dependent,experiencing similar phases of acceleration, transformation,adjustment and progress. This
paper nds that the currentera of globalization is characterized byan increasing complexity and diversity of
transnational interests and global connections; this is also true for international investment law, which is
undergoingchanges aimed at including wider contexts and interests in internationalinvestment relations.
Originality/value The analysis contributes to a more holisticunderstanding of the interdependence of
these two phenomena, helping to explain how international investment law has become such a powerful,
globallyrecognized and applied legal regime.
Keywords Globalization, International investment law, International law, Investment treaties,
Investment arbitration
Paper type General review
1. Introduction
Owing to extraordinary technological advancements, global connectivity and the sheer
speed of the transformation and progress, globalization is one of the most prevalent
phenomena of our times. International investment law has also grown remarkably from a
niche and narrow set of rules designed to protectforeign investment to a powerful, globally
applicable, omnipotent legal framework shaping global economic relations and alliances.
Globalization fever facilitated the extraordinary career of the international investment law
regime just as international investment law supported, legitimized and equipped the
globalization process with a legal construct to further global expansion. International
investment law is not a one-dimensional and mono causal area of law and its analysis
should be interdisciplinary, taking account of a wider context. Globalization provides such
analytical framework.
Recent global developmentshave been dominated by economic power struggles between
two main players, the USA and China. The digital economy and technology advances
facilitate a global, borderless, nation less and rapidly expanding cyber world. Other global
trends, such as climate change, wealth gaps, extremism and a revival of nationalism,
illustrate globalizationsnegative effects.
Intertwined
paths of
globalization
85
Received16 January 2020
Revised16 March 2020
26May 2020
Accepted27 May 2020
Journalof International Trade
Lawand Policy
Vol.19 No. 2, 2020
pp. 85-99
© Emerald Publishing Limited
1477-0024
DOI 10.1108/JITLP-01-2020-0010
The current issue and full text archive of this journal is available on Emerald Insight at:
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