Like international trade, cross-border direct investment drives
economic growth. The value of cross-border investment flows has
increased dramatically worldwide in response to liberalization of
investment rules over the past couple of decades. But the trend
toward liberalization has slowed, even reversed, in recent years.
In April, the International Chamber of Commerce published the first
revision in 40 years to its International Investment Guidelines,
and the Obama administration published long-awaited revisions to
its template for international investment agreements—the
so-called model bilateral investment treaty. Will these
developments help rein in investment protectionism. How will they
influence cross-border investment flows? Can they help achieve the
vaunted macroeconomic rebalancing?