New Books in Economics Claire Provost and Matt Kennard, "Silent Coup: How Corporations Overthrew Democracy" (Bloomsbury, 2023)
Mar 2, 2026
Claire Provost, investigative journalist who has reported from 30 countries, explains how global corporations built legal and territorial tools to sidestep democracy. She discusses investor-state dispute systems, special economic zones, and landmark cases that show corporate power constraining policy. The conversation highlights why these mechanisms grew after the 1990s and why they remain largely out of sight.
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ICSID Lets Corporations Sue States Directly
- The World Bank's ICSID runs an investor-state dispute system allowing corporations to sue states internationally, often bypassing national courts.
- Tribunals of three arbitrators, usually business-friendly, can force policy changes or huge awards that effectively limit states' options.
ISDS Roots Tie To Decolonization Fears
- ISDS and similar proposals emerged during decolonization as elites sought to insulate corporate power from newly independent states.
- Early architects pitched a "corporate Magna Carta" to protect investor rights against nationalist reforms.
El Salvador Mining Case Sparked The Investigation
- Claire and Matt first encountered ISDS through a Salvadoran case where a mining company sued over a mining license ban during a water crisis.
- The company used the suit to pressure policy change rather than merely seek damages, alarming local environmental movements.
