Intertwined paths of globalization and international investment law

Abstract

Purpose International investment law has become a powerful tool of global economic governance. With its global network of international investment treaties and effective arbitration 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 trajectories of globalization and international investment law have been intertwined. Design/methodology/approach This paper follows the historical unfolding of international investment law against the background of the globalization phenomenon, tracing the history of globalization processes since the expansion of European interests and export of capital and the onset of the international investment legal framework. Findings The evolution of globalization and international investment law has always been intertwined and co-dependent, experiencing similar phases of acceleration, transformation, adjustment and progress. This paper finds that the current era of globalization is characterized by an increasing complexity and diversity of transnational interests and global connections; this is also true for international investment law, which is undergoing changes aimed at including wider contexts and interests in international investment relations. Originality/value The analysis contributes to a more holistic understanding of the interdependence of these two phenomena, helping to explain how international investment law has become such a powerful, globally recognized and applied legal regime.