The Human Rights and Developmental Dimension of Investment Laws: From Investment Laws with Human Rights to Development-Oriented Investment Laws

Domestic investment laws are classified in this Article as strong, moderate, and weak in terms of their relevance for the protection of human rights and the promotion of developmental goals. This Article suggests that if human rights and development are to find a stable place in the global investment architecture, a radical departure from the current Model Bilateral Investment Treaty (BIT) regime is required. It is suggested that BITs be replaced with domestic investment laws that contain precise developmental objectives for the host (developing) States. Each prospective investor, in consultation with the host state, will undertake a Development Impact Assessment (DIA), which will be directed towards identifying and contributing to the host's development.

This system will eliminate the need for the negotiation of investment guarantees in BITs because where the investors satisfy their stated development-related duties and other obligations in the domestic investment law, they will not be subject to further limitations.