The international arbitration as a method of settling investment disputes

Abstract

The main subject of this article is an analysis of the mechanism of settling investment disputes by means of international arbitration. This essay indicates that factors such as globalization, digitization, intensification of international economic contacts, especially between advanced countries and developing countries, have contributed to the increase in the number of investment disputes, which determines the need to resolve these disputes on the basis of the international law. Due to the origin of entities from different countries with different economic systems and various legal cultures, the international investment arbitration seems to be an effective way to resolve disputes, which provides private investors with guarantees of investment security. The article mentions the characteristic features of the international investment arbitration, such as: consensuality, dispute resolution by an independent tribunal, equality of parties to the proceedings, the possibility of dispute resolution based on the principle of equity, decentralized nature of arbitration. The essay also relates to the clauses appearing in the agreements on the promotion and mutual protection of investments. In addition to this, de lege ferenda conclusions regarding the increase of the transparency of the arbitration proceedings and allowance of the participation of so-called friends of the court in the investment arbitration have been mentioned in the present article as well.