Abstract

In the context of current criticisms of the investment dispute settlement system (“ISDS”), mediation is relevant two-fold – as an alternative way to resolve conflicts and as a response to at least some ISDS challenges. Given that the investment disputes have special characteristics that are reflected in the role of the state as defendant, it comes naturally that the question of developing its capacities to enable greater use of mediation arises. Mediation has so far not been sufficiently widespread in this domain of international investment protection, in contrast to the success it has shown in the developed economies of the western world, including the countries of the “Asian Tigers”, which are culturally inclined to peaceful resolution of disputes. This article aims to establish that the development of state capacities can contribute to wider use of mediation, and to present in which exact fields public law actors should develop these capacities.

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