INDIRECT EXPROPRIATION AND NON COMPENSABLE REGULATORY STATE ACT IN ETHIOPIAN BIT’s AND INVESTMENT LAWS
CHAPTER THREE INDIRECT EXPROPRIATION AND NON COMPENSABLE REGULATORY STATE ACT IN ETHIOPIAN BIT’s AND INVESTMENT LAWS Read The First Chapter 3.1 Introduction International Investment Agreements (IIAs) are well termed as “double-edged swords”: 193 while they can be used as instruments to attract FDI, 194 they restrain host states’ policy space in exercising their legitimate regulatory powers. In most IIAs there are no clear boundaries between non-compensable regulatory measures and measures that lead to an “indirect expropriation”. 195 In fact, the desire of contracting states to be perceived as attractive investment destinations or to gain the maximum protection for their national investors investing abroad, meant States failed to foresee the importance of leaving policy space for themselves. 196 The police (regulatory) powers doctrine is closely linked to the international public law concept of state sovereignty. State sovereignty is the state's attr...