Alternative Dispute Resolution for Stakeholders in International Investment Law

Abstract

This article discusses several new alternative dispute resolution (‘ADR’) mechanisms that intend to address complaints from stakeholder groups that may suffer as a consequence of foreign direct investment (‘FDI’). ADR methods such as mediation are well suited to resolving international investment disputes because these are more accessible to stakeholders in the developing world where conventional fora such as civil courts may be unavailable, not independent or else too expensive. The article explores common stakeholder grievance procedures within the international development banks that fund investment projects in the developing world. It then examines the national contact points (‘NCP’) procedures established under the Organization for Economic Cooperation and Development as well as a new office operated by the Canadian government for complaints regarding foreign investment in the extractive sector. The article concludes by recommending ways in which participation in these types of processes by stakeholders and investors can be improved through mandatory provisions in international investment agreements (‘IIA’)s.