Int. J. Private Law, Vol. 6, No. 1, 2013 67 The Andean approach to stabilisation clauses Camilo A. Rodriguez-Yong* and Karol X. Martinez-Muñoz Universidad del Rosario Law School (Colombia), Bogotá, Colombia E-mail: camilo.rodriguez@urosario.edu.co E-mail: karol.martinez@urosario.edu.co *Corresponding author Abstract: This article aims to recognise the features that identify the Andean approach as a region of the stabilisation clauses by analysing the experience of Colombia, Ecuador, Peru and Bolivia. This approach is characterised by: 1 involving a classic freezing stabilisation clause 2 being used as an instrument to promote investment in the country 3 keeping the State power to enact new laws 4 being utilised by investors of multiple economic sectors and activities 5 being incorporated in contracts of private and administrative character 6 being entered into by national and foreign investors and natural and legal persons 7 being regulated by a statute 8 imposing a mandatory minimum amount for the investment 9 being exceptionally onerous 10 having a temporary character, and finally 11 guaranteeing legal stability over tax law and other law areas. Keywords: foreign investment; stabilisation clauses; Andean countries; contracts of legal stability. Reference to this paper should be made as follows: Rodriguez-Yong, C.A. and Martinez- Muñoz, K.X. (2013) ‘The Andean approach to stabilisation clauses’, Int. J. Private Law, Vol. 6, No. 1, pp.67–87. Biographical notes: Camilo A. Rodriguez-Yong (J.D. Universidad del Rosario Law School, LL.M and S.J.D. Indiana University Maurer School of Law) is the Director of Private Law Research Group of the Universidad Rosario. Karol X. Martinez-Muñoz (J.D. Universidad del Rosario Law School; European Master Degree, Universita Degli Studi di Messina) practices law in Columbia. 1 Introduction The reception of foreign direct investment in a national economy provides several advantages. 1 This situation explains the interest of countries in attracting high levels of investment in their territory. However, the attraction of foreign investment in a national economy requires the existence of attractive conditions that provide confidence to the investor. For example, during the 1960s and 1970s there existed an investor ‘confidence Copyright © 2013 Inderscience Enterprises Ltd.