Ep 50 ft. Rachel Wellhausen

Clauses & Controversies

What Do We Know About International Investment? What allows countries to borrow and to attract investment? Often the answer emphasizes the ability to make credible commitments, and this is often supposed to be easier for countries with democratic institutions. For some countries—often supposed to be those with weaker domestic institutions—agreeing to submit disputes to international investment arbitration is thought to be a way to make promises credible. Many in the civil society arena absolutely hate investment arbitration, thinking it is unfair to borrower countries. The rejoinder, of course, is that it is necessary to enable investment. As it turns out, we actually know relatively little about the factors that enable governments to make credible promises. Rachel Wellhausen (Texas) is one of the foremost experts in the political economy of international investment and finance. Her work spans the investment arbitration system, the relevance of the so-called “democratic advantage,” and other fundamental questions. She joins us to talk about the ability of governments to attract investment. Producer: Leanna Doty