Stabilization Clauses in International Investment Law: A sustainable development approach

By Jola Gjuzi, published by Springer, 2018

This book analyzes the tension between the host state’s commitment to providing regulatory stability for foreign investors and its commitments to its citizens with regard to environmental protection and social welfare. It argues that the antinomy between stabilization clauses and regulatory power contradicts the content and rationale of sustainable development. To reconcile this antinomy at the decision-making and dispute settlement levels, it employs a “constructive sustainable development approach,” relying on principles of law such as non-discrimination, public purpose, due process, proportionality, good governance and rule of law. It re-conceptualizes stabilization clauses in terms of design (ex-ante) and interpretation (ex-post), yielding stability for foreign investors while mitigating negative effects on the host state’s power to regulate. Available at