This text explores how the public purpose doctrine reconciles the
often conflicting, but equally binding, obligations that states
have to engage in regulatory sovereignty while honoring host-state
obligations to protect foreign investment. The work examines the
multiple permutations and iterations of the public purpose doctrine
and concludes that this principle needs to be reconceptualized to
meet the imperatives of economic globalization and of a new
paradigm of sovereignty that is based on the interdependence, and
not independence, of states. It contends that the historical
expression of the public purpose doctrine in customary and
conventional international law is fraught with fundamental flaws
that, if not corrected, will give rise to disparities in the
relationship between investors and states, asymmetries with respect
to industrialized nations and developing states, and, ultimately,
process legitimacy concerns.
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