Samarth Mehrotra, National Law Institute University, Bhopal
ABSTRACT
Strong institutional framework, ICSID has encouraged foreign investment. Because the ICSID Convention came into force when international arbitration and dispute settlement were rare, investors and participants feel safe. Foreign investment benefits both parties, however, the investor must battle for their rights in the participating State. Arbitration and conciliation resolve this issue given ICSID's binding awards. Thus, contractual member- states dislike using their immunity to breach the convention, especially when they must pay an award. The ICSID Convention's clear rules simplify the process. Neither side benefits from one being a nation-state. Arbitration internationally relies on party autonomy, which the system preserves. Finally, automatic recognition simplifies award enforcement and collection. Internationalizing an ICSID arbitration may be the most beneficial part of the Convention because it strengthens its autonomy and freedom from political influence. Nation-states execute ICSID's international law decisions.
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