Abstract
One of the main reasons for codifying laws regarding foreign investment is to send a positive signal to potential investors and to place on record a host country’s newly formulated policy towards FDI. The passage of clear and supportive foreign investment legislation conveys the message that investment is welcome, 1 which explains the necessity for implementation and the importance of special legislation on FDI in the newly emerged post-Soviet states, and the absence of such legislation in most industrialized countries. However, an analysis of current laws regulating foreign investment, including those that are designed specifically for the regulation of foreign investment as well as those provisions that are dispersed throughout other parts of domestic legislation, is unlikely to be helpful if it lacks any clear understanding of the sociopolitical and economic underpinnings. Waelde has noticed that in this regard: In every country, but particularly in ex-Soviet countries like Kazakhstan, a qualified lawyer will have to look behind official documentation to see things as they are. A prospective businessman would be less interested in official data, and more concerned to look behind the veil: What are the issues and the rules of the game? There is almost no understanding and reporting of these very complex — and for an investor most significant — issues. 2 These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.