Law Commons^™

Indirect Expropriation And Its Valuation In The Bit Generation, Robert D. Sloane

Faculty Scholarship

Bilateral investment treaties (BITs), which have proliferated at an astonishing pace in the past decade, commonly seek to establish a stable, orderly framework for foreign investment by creating "favorable conditions for greater investment by nationals and companies of one state in the territory of the other state." Unlike their predecessors of an earlier generation, i.e., friendship, commerce, and navigation treaties (FCNs), in the area of foreign investment, BITs require more than the mere prohibition of expropriation without compensation. The BIT generation, weaned on Hayek and navigating amid the detritus of hundreds of well-intentioned but disastrous multilateral and national development programs, …