The State Sovereignty in the Context of Attracting Foreign Investments

Abstract

The paper explores various concepts of the notion of sovereignty of the state, its content, including modern theories, whose representatives write about the sunset, twilight, transformation of sovereignty in the context of globalization. Globalization can adversely affect the social sphere, economy and other spheres of state activity, but it does not lead to the withering away of the main functions of the state, as well as the state itself. Entering into an integration association, becoming a party to an international treaty, the state does not limit its sovereignty, but, on the contrary, uses its sovereign rights. The problem of state sovereignty has acquired special significance today in connection with the process of attracting foreign investment. Foreign investment, being a boon to the economy of the host state, may pose a threat to the security of the state. The states, being sovereign, themselves have the right to decide whether to allow foreign investors into theirterritory or not. Many states have entered into international investment treaties to encourage and protect foreign investment. These agreements provide for the possibility of an investor applying to a foreign state for international arbitration, despite the absence of a separate arbitration clause between the investor and the state. Based on a study of the theoretical issues of state sovereignty, it is concluded that such international treaties do not violate the sovereignty of the state, since states voluntarily become parties to such agreements and themselves allow investors to use the arbitration method of dispute resolution.