INVESTMENT RULE MAKING AND GOOD GOVERNANCE IN INTERNATIONAL INVESTMENT ARBITRATION
This paper is about the role of the State in investment rule making, balancing the investor rights and the regulatory autonomy of the States, and thereby evolving good governance standards. This paper explores into how States could better define their treaty obligations, preserve more efficiently their sovereign prerogatives and ensure an appropriate level of accountability and responsibility of multinational companies. This paper argues that States shall be given an opportunity to resolve the issues at the domestic level to better reflect the values of good governance preceding the international investment arbitration. This paper also argues that States should be afforded with sufficient degree of regulatory flexibility to ensure good governance in pursuing policy objectives while they are expected to comply with good governance standards in their treatment of foreign investors. This paper views the model bilateral investment treaty as a powerful tool in the hands of the States to frame investment rules with clarity and certainty for good governance. This paper concludes that the Indian Model Bilateral Investment Treaty 2016 reflects the Indian style of investment rule making, for good governance balancing investor rights and the regulatory autonomy of the host State.