Protection and support of foreign investments and investment disputes resolution

The year 1989 marked the beginning of major changes. The fundamental one represents the transformation of state economy into a market economy. Czechoslovakia according to a model experience of developed countries but also of states in transition used the greatest opportunity for its economic growth and opened up to foreign capital inflow. States, that had intended to attract foreign investors, had to eliminate the socialist label, left after the period of nationalization and political arbitrariness in the relations between state and private person. At the beginning of a new era, priority was to overcome mistrust and legal uncertainty, which the turn of the 90th had given rise to. The aim of efforts of former Czechoslovakia and afterwards of Czech Republic was particularly to create a favorable legal climate for foreign investment and to stir the frozen domestic economy. In this effort, and contrary to the past practice, Czech Republic decided to cooperate at international level and become part of developing, but already functioning system of protection and support of foreign investment. Important first steps were made by concluding bilateral agreements on reciprocal promotion and protection of investments and ratification of multilateralconventions. Time period during the nineties happened to be..