Calvo Doctrine Law & Legal Definition
Calvo doctrine is an economic policy which says that jurisdiction in international investment disputes lies with the country where the investment is made. The Doctrine rejects right of foreign investors to appeal to their home country for help since this could result in violating the territorial sovereignty and judicial independence of the host countries. An investor, under this doctrine, has to use the local courts rather than courts of their home country. This doctrine was introduced by Carlos Calvo, an Argentine jurist, who thought it necessary to prevent abuse of jurisdiction of weak nations by more powerful nations. During the twentieth century, the Calvo Doctrine was adopted by several Latin American countries.
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