In international investment law there is a long-standing debate about the proper standard of compensation for takings. The first alternative is prompt, adequate, and effective compensation: often interpreted as the fair market value of the investment including expected profits. The second is appropriate compensation: a value that can range from full compensation to much less depending on the circumstances. In order to assess this debate, this Article examines the expected and actual behaviors of the main actors-the investor and the host state-in investment transactions.
The Standard of Compensation for Takings, 25 Minn. J. Int'l L. 335