Intertwined paths of globalization and international investment law

• DOI: https://doi.org/10.1108/JITLP-01-2020-0010
• Pages: 85-99
• Published date: 29 June 2020
• Date: 29 June 2020
• Author: Agata Ferreira
• Subject Matter: International business law,Strategy,Economics,International economics

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 f‌inds 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 globalization’snegative 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

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