Critisism of contribution to economic development of the host state as a criterion of Salini test

Abstract

The article examines one of the Salini criterion, in particular, the criterion of contribution to the economic development of the host state, and the feasibility of applying the criterion to qualify investment within the meaning of article 25(1) of the 1965 Convention on the Settlement of Investment Disputes between States and Nationals of other States. The publication investigates into the drafting history of the 1965 Convention on the Settlement of Investment Disputes between States and Nationals of other States, which was not studied in detail by domestic scholars. Research results indicated that the current approach of applying the criterion does not make it possible to establish the existence of investment ‘objectively’ for the purposes of defining subject-matter jurisdiction of the International Centre for Settlement of International Disputes.