International investment law balances public and private interests within the broader framework of international law. Consequently, when water supply services, which constitute a public good, are privatized and operated by foreign investors, questions arise regarding whether foreign investors could be held responsible for the right to water under international law. This article considers how the tribunal in Urbaser v. Argentina allocated responsibility for compliance with the right to water between the host State and the foreign investor when resolving a dispute over privatized water services. It highlights how the tribunal in Urbaser v. Argentina supports different understandings of public and private based on whether the human rights obligation is framed in terms of the duty to respect or protect. The article argues that the tribunal's rationale overcomplicates the process of allocating responsibility for violations of the human right to water when water supply services have been privatized.
International investment law can be criticized for its understanding of sovereignty. Informed by the works of Koskenniemi, this article reimagines 'sovereignty' based on a host State population exercising its right to economic self-determination. Recent transparency initiatives in international investment law support this conceptualization of sovereignty. Further, the stance taken aligns with the continuous evolution of the international investment law regime. The establishment of a different perspective on sovereignty in international investment law highlights the need for an alternative understanding of this term if international investment law is to achieve widespread approval.
This introductory chapter provides an overview of the role of jurisdiction in international law. Jurisdiction becomes an issue in international law once a state adopts laws that govern matters which are not purely of domestic concern. In this case, the extension of jurisdiction to regulate the activities of a state’s nationals abroad under the so-called active personality principle draws on the conception of a state as more than just territory, namely as a group of persons, wherever located, who are subject to a common authority that accompanies nationality. This type of jurisdiction is exercised to protect a state’s reputation from being tarnished by the conduct of its nationals abroad. Meanwhile, the question of nationality is determined by domestic law, although international law ascertains whether such a claim of nationality by one state must be accepted by another on the basis of the ‘genuine link’ test.
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