Bolivia was the first nation to leave a legal system that allows foreign companies to sue governments behind closed doors. Now, other countries are following.
I swear we’re all under a crown, we just don’t know who they are.
The protests roiled the country for months and forced the national government to cancel the contract, returning water services to public control.
But after the consortium filed a legal claim against the Bolivian government in 2002, seeking up to $50 million, the popular uprising transformed into a broader fight against the legal system that allowed this. Investor-state dispute settlement, or ISDS, lets foreign companies bypass national courts and sue governments before international panels of arbitrators.
These tribunals have awarded hundreds of millions or even billions of dollars to companies, even in cases where they flouted national laws, polluted the environment or were accused of violating human rights. Most of these cases have been filed by companies from wealthy nations against developing countries, prompting critics to say ISDS acts like a form of modern-day colonialism.
I swear we’re all under a crown, we just don’t know who they are.