Stabilization clause

A stabilization clause is a risk management device used in investment contracts. They are contractual and statutory guarantees aimed at preserving “the law of the host country as it applies to the investment at the time the State contract is concluded” and ensuring that “future changes to the law of the host country are inapplicable to the foreign investment contract.” [1]

## References

1. ↑ http://www.ifc.org/ifcext/enviro.nsf/AttachmentsByTitle/p_StabilizationClausesandHumanRights/$FILE/Stabilization+Paper.pdf

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