A new analytical matrix for understanding International Investment Law Agreements in the Global South

Abstract This article explores the unique dynamics of international investment law from the perspective of the Global South, a highly heterogeneous collective of emerging and least-developed economies. Traditional international investment agreements (IIAs) often place these countries in positions where they must compromise their regulatory autonomy to attract foreign investment. By proposing a new analytical matrix, the authors aim to elucidate the various ways in which countries of the Global South engage with IIAs. This matrix is tested through theoretical categorization and concrete examples, highlighting engagement strategies from passive compliance to active reform and radical disengagement. The matrix serves as a foundational tool for understanding these nations’ complexities and varied responses within the global investment regime. The article concludes by emphasizing the need for a reimagined approach that balances foreign investment needs with the Global South’s sovereign developmental and regulatory goals. This new framework seeks to offer scholars and policymakers a refined instrument to advocate for equitable benefits from IIAs, urging a reconsideration of current norms and practices to better align with the developmental objectives of host countries.