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Smart Flexibility Clauses in International Investment Treaties and Sustainable Development

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A major challenge for investment treaty designers and adjudicators is to separate opportunistic behavior by host states that should be sanctioned under international law from bona fide public policy measures that should not. This article suggests that international investment agreements (iias) need to be both ‘smarter’ and more ‘flexible’ to better make that distinction. It draws on economic contract theory as a basic framework, and political economy theory for fine-tuning.

Affiliations: 1: University of St. Gallen, St. Gallen, Switzerland, anne.vanaaken@unisg.ch

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/content/journals/10.1163/22119000-01506004
2014-11-18
2018-10-16

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