Аңдатпа
An important factor shaping the regulatory framework and influencing the effectiveness of legal regulation of FDI is the nature of the institutions which have the power to deal with the area in question. 1 An analysis of recent legal studies on foreign investment in the former USSR indicates that commentators perceive the ongoing process of transition to be a constant variable, in that they assume that the overall pattern of the present socioeconomic transformations — the transition — is a forward-oriented progressive process, one which presumably departs from the totalitarian past to a system which resembles western democracies. Furthermore, they tend to view the state in this process as a monolithic entity which is becoming, in a Weberian sense, ‘rational’. 2 Thus, in the analysis of legal phenomena, this analytical unit — the state itself, which predetermines the overall direction of transition — is treated as an exogenous phenomenon. This chapter will employ an approach according to which this phenomenon will be treated as being endogenous. More specifically, we will suggest that the state — through processes of internal restructuring — can cause the regression of the transitional process and, accordingly, may impede the achievement of the optimal equlibrium of FDI regulation. 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.