Vanderbilt Journal of Transnational Law

First Page



Perhaps no other exercise of the prerogatives of national sovereignty during the past two decades has proven so divisive to the community of nations or created quite as much uncertainty in international commerce as the taking of an alien investor's property by host States. Certainly these takings have contributed mightily to the intensity of the confrontation between the Third World and the developed nations. As a result of these confrontations the line has been clearly drawn between the industrialized nations and those developing countries of the Third World that subscribe to the precepts of the New International Economic Order, an emotional appeal for redistribution of the World's wealth. Both groups of nations advance well-defined and contrasting arguments in support of their positions on taking of property, the law governing such takings, and the terms and conditions of compensation. This article will discuss the current status under international law of these conflicting views.