Investment and Sustainable Development

One of the most recurrent critiques to foreign investment in general and bilateral investment treaties (BITs) in particular relates to the scarce attention paid to, if not the detrimental effect they may have on sustainable development. It has been argued that the flow of foreign investment often results in dysfunctional use of natural resources and has a negative impact on the protection of environment, human and labour standards as well as the other associated social values. The paper aims at examining the relationship between BITs and sustainable development. It first defines the concept of sustainable development and its normative value. It then discusses and assesses the relevance and treatment of this concept in current BITs, focusing on interpretation, applicable law, and the relevant treaty provisions, including those on the coordination with other treaties and those containing exceptions and presumptions.