Abstract
This paper aims to examine the historical and contemporary causes of global economic imbalances, focusing on the legacy of colonization and its informal continuation into the modern investment system; It argues that the current economic disparities between the overdeveloped countries and the developing ones are deeply widened due to formerly colonial exploitation of developing nations’ resources through militant colonizing powers at the expense of developing nations. Thus, colonialism established a global economic system, enriching the economic power of developed nations over developing nations, shaping the current generic principles of the international foreign investment system, particularly through arbitral interpretations of the Fair and Equitable Treatment standard (FET) principles. A system that develops a resemblance to colonialism; however, in an extended legalized dominance through foreign investment of the developed nations' nationals, resulting in further entrenchment of global economic inequality. This study contends that problematic interpretations limit the policy space of developing countries and undermine their sovereign right to regulate their internal affairs. By engaging with investment arbitration jurisprudence through a case study of ICSID waste management cases and goals of decolonization, this paper calls for restructuring the international investment framework to ensure fairer outcomes and respect for the economic sovereignty of developing nations. Thus, the paper raises the following question: Do arbitral interpretations of the International Foreign Investment Agreements' Fair and Equitable Treatment clause reflect an implied neocolonial interference in the regulatory rights of developing nations through investor nationals of developed states? Keywords: Colonial legacy, International Investment Law, Fair and Equitable Treatment, Waste Management, Arbitral Jurisprudence, Economic Inequality, Foreign Investment, Sovereignty, Regulatory Rights, Developing Countries.
School
School of Global Affairs and Public Policy
Department
Law Department
Degree Name
MA in International & Comparative Education
Graduation Date
Fall 2025
Submission Date
9-21-2025
First Advisor
Hedayat Heikal
Second Advisor
Hani Sayed
Third Advisor
Jason Beckett
Committee Member 1
Hani Sayed
Committee Member 2
Jason Beckett
Extent
93 p.
Document Type
Master's Thesis
Institutional Review Board (IRB) Approval
Approval has been obtained for this item
Disclosure of AI Use
No use of AI
Recommended Citation
APA Citation
ElSabrout, S. M.
(2025).International Law on Foreign Investment: Neo-Colonialism or Economic Progress? [Master's Thesis, the American University in Cairo]. AUC Knowledge Fountain.
https://fount.aucegypt.edu/etds/2641
MLA Citation
ElSabrout, Seham Mahmoud. International Law on Foreign Investment: Neo-Colonialism or Economic Progress?. 2025. American University in Cairo, Master's Thesis. AUC Knowledge Fountain.
https://fount.aucegypt.edu/etds/2641