IISD Economies (@economies.iisd.org)

🎥Last week, Investment expert Josef Ostranzsky participated in a Society of International Economic Law webinar, discussing the current #investment regime and how its promise to strengthen national governance has worked out in practice. Watch the webinar here ➡️ tinyurl.com/48fh5zac

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SIEL Conversation October 2025: Investment Treaties and the Good Governance Narrative One of the core justifications for the investment regime is that the threat of ISDS would have a salutary effect on signatory states, incentivising them to improve domestic governance and promote the rule of law. The idea was that governments would internalise their commitments into their law-making and decision-making processes. Yet, empirical studies on the relationship between investment treaties and governance quality are mixed. While some research suggests that investment treaties correlate with rule-of-law improvements, others find no causal link or even negative effects on governance. Moreover, the concept of ‘good governance’ and certain conceptions of the rule of law are largely shaped by institutions such as the IMF and World Bank, prioritising market-oriented legal and economic structures and reinforcing global north legal hegemony, and pressure to maintain an investor friendly climate may translate to lower corporate taxation and deregulation and the expense of social and environment protection. Discussants: Jonathan Bonnitcha, Associate Professor, UNSW Sydney Nicolás M. Perrone,Professor, Universidad de Valparaíso Lauge Poulsen, Professor, UCL Josef Ostřanský, Senior Policy Advisor, IISD Mavluda Sattorova, Professor, University of Liverpool Moderator: Caroline Henckels, Associate Professor, Monash University https://tinyurl.com/48fh5zac