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Muin Boase

One of the drawbacks of international investment law is the absence of an explicit standard to censure investor misconduct. This chapter claims the existence under custom, at least since the time of Vattel, of a standard of conduct for nationals abroad which could incur the responsibility of home states. The chapter undertakes a genealogy of such a standard under three different regimes for the protection of citizens abroad: first the regime of extraterritoriality in the early 19th century; second as a condition for diplomatic protection in the early 20th century; and third through the drafting of international investment law under which the responsibility of host states was vested as rights of the foreign investor, but the responsibility of home states for citizens abroad was not conferred as duties on the foreign investor. The chapter proposes that an international minimum standard to refrain from censurable conduct should be applied directly to the investor.