Contemporary international investment law grapples with the fundamental
challenge of harmonizing state regulatory autonomy with foreign investor protections. This complex
interplay requires careful consideration of how to safeguard both sovereign rights and investment
security within the international legal framework. The evolution of investment dispute resolution
systems, particularly within ICSID arbitration, demonstrates the ongoing effort to achieve this balance.
Bilateral investment treaties serve as crucial instruments in defining the scope of both state
authority and investor protections. These agreements must navigate the delicate balance between
preserving states' right to regulate in the public interest while maintaining a stable and predictable
environment for foreign investment.
Through careful analysis of existing mechanisms and emerging trends, this study proposes
refined approaches to strengthen the investment dispute resolution framework. The recommendations
focus on developing more nuanced methods to accommodate legitimate state regulatory actions while
ensuring meaningful protection for foreign investors' rights, ultimately contributing to a more sustainable
international investment regime.