AN IN-DEPTH ANALYSIS OF ARBITRATION UNDER THE INTERNATIONAL CENTER FOR THE SETTLEMENT OF INVESTMENT DISPUTES (ICSID)

Abstract

The phenomenal increase in global world trade and investment has now elevated arbitration as
the principal method of resolving international investment disputes involving states, corporations
and foreign investors. The concept of arbitration crept into international investments to
harmonize investment dispute settlement mechanism, by employing specialized international
arbitration practitioners and institutions. Hitherto, the international law on foreign investment
lacked clear court rules on investment promotion and protection for foreign investors in their
relationship with host states. This paper using the doctrinal methodology, examined the role of
arbitration under the International Center for The Settlement of Investment Disputes (ICSID) as
a source for the provision of a harmonized legal framework for the resolution of investment
disputes between the host states and the foreign investors. The paper upon its findings
recommends parties right of appeal against an award based on the substantive and manifest
wrongs in the process of the awards, but not only on the issues of legitimacy of the process of
the awards; and a reduction in the overall costs of the ICSID arbitration proceedings to make
international disputes resolution through arbitration affordable to international foreign investors.