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36 Colum. J. Transnat'l L. 501 (1998)
Investment Liberalization and Economic Development: The Role of Bilateral Investment Treaties

handle is hein.journals/cjtl36 and id is 507 raw text is: Articles

INVESTMENT LIBERALIZATION AND
ECONOMIC DEVELOPMENT:
THE ROLE OF BILATERAL
INVESTMENT TREATIES
KENNETH J. VANDEVELDE*
This Article analyzes the role of Bilateral Investment Treaties
(BITs) in promoting the twin goals of liberalization and
development. The Author discusses the extent to which BITs
contribute to the creation of a liberal investment regime and
the place of BITs in economic development. Though liberal-
ization may not be essential to economic development, states
seeking to develop economically may have little alternative
as a practical matter other than to embrace the kinds of
policies that a BIT requires. The article then examines the
question of whether such policies should be codified in a BIT.
The Author concludes that the stabilization promised by the
BIT is at the very core of genuine liberalization. Developing
states that resist long-term commitments to liberalization
such as those embodied in the BITs may find that they are not
on a liberal path at all.
I.  BITs As INSTRUMENTS OF LIBERALIZATION ............ 504
A.   The Elements of a Liberal Investment Regime ...... 504
B.   The Substance of the BITs ...................... 506
1.  Investment Security  .......................  506
2. Investment Neutrality ...................... 510
3.  Market Facilitation  ........................  513
4.  Summary   ...............................  514
II. THE ROLE OF BITs iN ECONoMIc DEVELOPMENT ........ 514
A. BITs Only Partially Liberalize Investment Policy .... 515
B. Liberalization May Not Accomplish the Desired

* Dean and Professor of Law, Thomas Jefferson School of Law.

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