Art. 1 is part of the Convention's Chapter I dealing with the organizational structure of the International Centre for Settlement of Investment Disputes (ICSID, the Centre). Subsequent Articles deal with the Centre's seat, its organs, its financing and its status, immunities and privileges.

Establishment and Name of the Centre

During the Convention's drafting, there was never any doubt that there would be a permanent administrative entity to facilitate the Convention's application (History, Vol. I, pp. 22, 24). There was some debate about the name of this entity (History, Vol. II, pp. 55, 76, 97, 111, 247, 381, 677, 681). Earlier drafts foresaw “International Conciliation and Arbitration Center”. This was changed into “International Center for the Settlement of Investment Disputes” (History, Vol. I, pp. 22, 24; Vol. II, p. 750). Eventually, the word “the” was removed from the name and the spelling “Centre” was adopted (at p. 943).

Purpose of the Centre

During the Convention's drafting, it was repeatedly emphasized that the Centre's purpose would be to facilitate conciliation and arbitration but that it would not undertake these activities itself. In other words, the Centre's task would be administrative rather than judicial (History, Vol. II, pp. 103, 104/5, 109–111, 113, 121, 129, 241, 953). There were suggestions to add an advisory function to the purpose of the Centre (at pp. 472/3, 541, 544, 656).