Emerging Markets and the International Investment Law and Policy Regime

Multinational enterprises, including those headquartered in emerging markets, operate within the confines of the international investment law and policy regime. On the one hand, this regime prescribes the extent to which these firms can invest abroad, and it provides various protections for their investments. On the other hand, the regime prescribes increasingly that the operations of these firms need to be conducted in a responsible manner. The relevant standards are formulated by governments. This chapter discusses the rise of the international investment regime, its substantive and procedural content and how and why the regime has changed over time, paying special attention to issues relating to emerging markets. Accordingly, the focus of this chapter is on the actions of governments, illustrating in the process of discussions how emerging market multinational enterprises can both benefit from the regime and how they are constrained by it