Indian Journal of International Law

, Volume 58, Issue 1–2, pp 231–234 | Cite as

Lauge N. Skovgaard Poulsen: Bounded rationality and economic diplomacy: the politics of investment treaties in developing countries

Cambridge University Press, Cambridge, 2015, xvi + 247 pp, Hardcover £67.00, ISBN: 9781107119536
  • David PusztaiEmail author
Book Review

The claim that international investment law underwent a previously unexpected, and to some extent outright unwanted, evolution features prominently among the identified roots of a perceived systemic crisis of the international investment regime. Amidst the evergreen debate on the “backlash” against international investment arbitration, Dr. Lauge N. Skovgaard Poulsen’s book offers a rigorous, and in a sense indeed merciless, deconstruction of myths about the origins of the international investment regime. Poulsen undertook to investigate the emergence of investment treaties to prove that their appearance was the result of ill-conceived and unsubstantiated assumptions about benefits flowing from their conclusion.

Why did developing countries sign up for investor-State arbitration in international investment agreements (IIAs)? Poulsen’s answer points to the deficient decision-making of officials preparing and negotiating IIAs. According to the author, rational choice theories do not...

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© The Indian Society of International Law 2018

Authors and Affiliations

  1. 1.Eötvös Loránd UniversityBudapestHungary

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