Publication

This paper looks at the bilateral investment treaties (BITs) developing countries adopt to attract Foreign Direct Investment (FDI). The author argues that BITs have, over time, become more invasive and more restrictive of the policies of these countries. In the bilateral negotiating realm, developing countries are at a significant disadvantage compared to bargaining in multilateral forums. To remedy this, he proposes more strategic thinking about bilateral treaty partners or a multilateral framework on investment. Given the political economy of bilateral bargaining, a multilateral agreement seems the most promising avenue to guarantee developing countries the policy space to help bolster industrialization.