REEVALUATING DEVELOPING STATES CONTINUED ENGAGEMENT WITH THE BILATERAL INVESTMENT TREATY REGIME

Abstract

This article questions the raging popularity of Bilateral Investment Treaties (BITs) among developing countries. Whereas a review of international investment jurisprudence shows that developing states lose more than they benefit by signing up for BITs. Essentially, BITs guarantee returns on investments for foreign investors without any guarantee for similar returns for the host country. Therefore, it is herein postulated that developing states are better off withdrawing from BITs as that would, contrary to expectations, not jeopardize their development.