NCJ Number
116031
Journal
Ohio State Journal on Dispute Resolution Volume: 4 Issue: 1 Dated: (1988) Pages: 107-122
Date Published
1988
Length
16 pages
Annotation
The International Centre for Settlement of Investment Disputes (ICSID) provides an international forum for the resolution of disputes between foreign investors and host governments.
Abstract
ICSID uses two methods of dispute resolution: arbitration and conciliation proceedings. It has three jurisdictional requirements: personal jurisdiction, consent, and subject matter jurisdiction. The personal jurisdiction requirement restricts the parties eligible for dispute resolution to a Contracting State and a foreign investor. Written consent must also exist. The subject matter must be investment, but the parties are free to define it in either traditional or nontraditional terms. ICSID resulted from the efforts of the International Bank for Reconstruction and Development (World Bank). The ICSID Convention took effect in October 1966. It has handled only 25 cases so far, however. Few cases were brought until the 1980's, because of the newness of ICSID, the lack of publicity, and the tendency of parties to settle amicably. However, 11 cases were brought to ICSID in 1988. The cases have increased because more agreements now include reference to ICSID, and parties have a more extensive case history from which to obtain guidance. ICSID cannot eliminate political risks involved in disputes, but it has proven to be an effective means for arbitrating a select group of disputes that arise as a result of such risks. It will probably be more widely used in the next decade, as it offers benefits to both investors and the contracting States. 101 footnotes.