International Arbitration Dissertation Example | Topics and Well Written Essays - 2000 words

International Arbitration - Dissertation Example The Second Chapter deals with the research methodology adopted in this work. A doctrinal approach was followed in this research work. The Third chapter provides a Literature Review. In this chapter, many case studies were included to examine the effectiveness of investment arbitration. Moreover, scholarly reports and extant literature on the topic were scrutinised. The Fourth Chapter deals with a discussion of the findings and the fifth chapter deals with conclusions. Ambiguity in the interpretation of the treaty provisions, lack of expertise in ministries in case of developing countries, bias on the part of the arbitrator are some of the reasons identified for the lack of success of investment arbitration. Shortcomings with International Investment Arbitration Chapter 1 – Introduction Investment treaty arbitration is significantly different from other types of arbitration. In investment arbitration, the arbitrator is empowered to make decisions that are final. This type of ar bitration brings to the fore a number of issues relating to impartiality and independence. In the other types of arbitration, the final decision is taken by the court.1 As is well known, the courts enjoy independence from private and state power. Such independence is promoted by providing judges with a secure tenure, precluding outside remuneration and the adoption of an objective procedure of assigning cases. These factors are conspicuous by their absence in investment arbitration. As a consequence, it is not uncommon for these arbitral awards to be influenced by inappropriate factors. 2 These safeguards do not find a place in investment treaty arbitration. A class of inappropriate influences is that related to the career and financial interests of arbitrators. These arbitrators do not have secure tenure and engage in remunerative activities that are external to their role as adjudicators. 3 The independence and impartiality of the investment arbitral process is crucially dependent on the existence of openness. In the absence of transparency, it become difficult if not impossible to confirm the integrity and fairness of the decision making process. 4 Arbitrations related to investment treaties emerge from bilateral and multilateral treaties formed between countries to promote foreign investment. In general, such treaties incorporate provisions for settling disputes between a private foreign investor and the host nation by arbitration, under public international law. 5 Contemporary international arbitration is widely believed to have commenced with the Jay Treaty of 1974. This treaty was entered into by the US and Great Britain. Private international arbitration had not developed during that epoch and there was a predominance of international arbitral commissions.6 Subsequently there was an increase in instances of private international commercial arbitration. However, this system of arbitration has not yet developed to any significant extent. Wider acceptance of this method of dispute resolution could render it more transparent. Such arbitration views confidentiality as a significant feature of the dispute resolution. Accordingly, if the parties are in favour of keeping their dispute resolution confidential, then they have to incorporate relevant clauses in their arbitration contract. 7 Another method of ensuring confidentiality is to make a reference in