International Centre for the Settlement of Investment Disputes & Its Role in Alternative Dispute Resolution

Abstract

The World Bank formed the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (Washington Convention) which came into force on October 14, 1966. The Washington Convention of March 18, 1965 established the International Centre for the Settlement of Investment Disputes (ICSID) which has jurisdiction over legal disputes arising from investments between a Contracting State and a national of another Contracting State. ICSID provides facilities for conciliation and arbitration of international investment disputes between member countries and individual investors. While international commercial arbitration focuses on dispute settlement between private parties and inter-state arbitration involves only States, ICSID arbitration oscillates between international commercial arbitration and inter-state arbitration. The Washington Convention has been ratified by over 140 countries.