The Impact of International Arbitration on the Rule of Law: The 2012 Clayton Utz/University of Sydney International Arbitration Lecture

Abstract

From ancient Greece through the Middle Ages and through the 20th century, businesses and states have relied on arbitration to resolve disputes, and arbitration has created and enforced a rule of law. Arbitration has created certainty that commercial transactions could be upheld; it has provided a mechanism for private persons to bring claims against governments; and it has even avoided war between states. Today, the success of the system has caused some stresses, and some have even said that the system itself is threatened. It is incumbent on those who practice in the field of international arbitration to preserve the system to enforce the rule of law. This lecture describes the history of arbitration and its development, both in private disputes and in disputes involving states. It then considers the contributions to the rule of law that international arbitration makes today in commercial disputes, investment treaty cases and even disputes between states. Finally, it looks to the future and makes suggestions about ways in which investment treaty arbitration can be improved to make sure that international arbitration continues to promote the rule of law.