There is a general wisdom that international investment law and investment-state arbitration contribute to the development of rule of law by enhancing features such as accountability, clarity, transparency, predictability, despite evidence to the contrary. Such wisdom stems from the neoliberal political, economic and legal discourse surrounding free trade and free markets, which were imposed and supported by international institutions on developing countries. Nevertheless, in many cases the neoliberal discourse was employed solely to justify economic plunder and the establishment of a predatory type of capitalism. The case brought by Gabriel Resources against Romania is one of the best examples thereof.
Starting from the claim of Gabriel Resources regarding the mineral resources in Roșia Montană, this chapter adds to the ongoing debate, addressing how the neoliberal rhetoric is employed by claimants before international arbitration panels against the host state about a specific FDI project. By resorting to the facts of the case based on public or leaked documents related to the investment, it debunks the myth of the positive impact of investment agreements on societal developments and proves how the system set up by BITs and international conventions is being abused by unscrupulous ‘investors’ to the detriment of host states and local population.