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1 results

  • 6 - The Regulatory Expropriation Conundrum

  • Jörg Kammerhofer, Albert-Ludwigs-Universität Freiburg, Germany
  • Book:
    International Investment Law and Legal Theory
    Published online:
    17 April 2021
    Print publication:
    06 May 2021, pp 162-185

  • Summary

    This chapter deconstructs the main argument of orthodox doctrinal scholarship on regulatory expropriation. It argues that the strong impetus of orthodox scholarship to solve problems leads both those favouring strong investor protection and those arguing for a wide state freedom to regulate to see the problem in virtually the same terms and to develop the same solution. The problem identified is that neither of the two extremes is sustainable; the solution is that a balance has to be struck. Yet such a view is ideological, not legal, because it cannot contemplate and must deny a priori the possibility that IIA expropriation clauses are skewed in one direction or that the law does not provide for a balanced, proportional solution. Doctrinal scholarship, however, must analyse the law as it is, not as we may wish it to be.