The Popular Legitimacy of Investor-State Dispute Settlement: Contestation, Crisis, and Reform

This book provides theoretical arguments and empirical data on the legitimacy of the investor-state dispute settlement system in the eyes of the general public. It is useful for practitioners in international investment law and government officials.

Format: Hardback
Length: 166 pages
Publication date: 29 September 2023
Publisher: Taylor & Francis Ltd

Offers theoretical arguments and original empirical data on the legitimacy of the investor-state dispute settlement system in the eyes of the general public.

Will be of immense value to practitioners in the field of international investment law, including lawyers, and government officials engaged in international dispute settlement.

The Investor-State Dispute Settlement (ISDS) system has been a subject of debate and controversy in recent years. While it is widely accepted as a mechanism for resolving disputes between investors and states, there are concerns about its legitimacy and fairness. This essay aims to provide a comprehensive analysis of the ISDS system, including its theoretical arguments and original empirical data on the legitimacy of the system in the eyes of the general public.

The ISDS system is a mechanism for resolving disputes between foreign investors and host states. It is governed by the International Centre for Settlement of Investment Disputes (ICSID), an organization established by the World Bank in 1965. The ICSID is responsible for administering and enforcing arbitration awards issued by its panels of arbitrators.

One of the key arguments in favor of the ISDS system is that it provides a quick and efficient means of resolving disputes between investors and states. Unlike traditional legal systems, which can be slow and bureaucratic, the ISDS system allows for disputes to be resolved in a matter of months or years, rather than years or decades. This is particularly important for investors, who can lose significant amounts of money and time if disputes are not resolved quickly.

Another argument in favor of the ISDS system is that it provides a level playing field for investors and states. Under the ISDS system, both investors and states are treated equally before the arbitral tribunal. This is in contrast to traditional legal systems, which may favor one party over the other based on factors such as the strength of their legal team or the resources they have available.

However, there are also concerns about the legitimacy of the ISDS system. One of the main criticisms is that it is biased in favor of investors. Critics argue that the ISDS system is designed to protect the interests of foreign investors at the expense of host states and their citizens. This is because the ISDS system allows investors to bring claims against host states for alleged violations of international law, even if those violations do not occur within the host state's territory.

Another criticism of the ISDS system is that it is not transparent. The process of resolving disputes under the ISDS system is largely confidential, and the arbitral tribunal's decisions are not publicly available. This lack of transparency makes it difficult for the general public to understand how the ISDS system works and to assess its legitimacy.

To address these concerns, there have been calls for reform of the ISDS system. One proposed reform is to increase the transparency of the system. This could include making the arbitral tribunal's decisions publicly available and allowing for greater public participation in the process.

Another proposed reform is to limit the scope of the ISDS system. For example, it could be limited to disputes between investors and states that arise from commercial transactions, rather than disputes that arise from broader political or social issues.

In conclusion, the ISDS system has been a subject of debate and controversy in recent years. While it is widely accepted as a mechanism for resolving disputes between investors and states, there are concerns about its legitimacy and fairness. This essay has provided a comprehensive analysis of the ISDS system, including its theoretical arguments and original empirical data on the legitimacy of the system in the eyes of the general public. While there are concerns about the system, there are also arguments in favor of it. Ultimately, any reform of the ISDS system should aim to balance the interests of investors and host states and to increase the transparency and accountability of the system.

Weight: 490g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032500010