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Final Conclusion

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Chapter Summary

For decades, the legal problems surrounding contracts between foreign investors and host States have been the subject of much controversy. By offering a satisfactory solution from both the host States and the foreign investors perspectives, the widespread establishment of investment treaties can be held to contribute considerably to the resolution of this schism. On account of the effective provision of protection under international law, the investment treaty regime represents a transcendence of the traditional legal problems surrounding these contracts. In the majority of cases, modern investment treaties have to be regarded as providing an effective and neutral way for resolving disputes that arise under contracts between host States and foreign investors. It is very likely that the system of the rule of law which is thereby established for thousands of existing investment contracts worldwide will enhance economic relationships and foster economic growth of all its participants.

Keywords: foreign investors; host States; investment treaties; legal problems



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