Skip to main content Accessibility help
×
Home
Hostname: page-component-55597f9d44-zdfhw Total loading time: 0.883 Render date: 2022-08-12T10:16:22.773Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "useRatesEcommerce": false, "useNewApi": true } hasContentIssue true

12 - Double Jeopardy? The Use of Investment Arbitration in Times of Crisis

from Part III - Output Legitimacy

Published online by Cambridge University Press:  06 January 2022

Daniel Behn
Affiliation:
Universitetet i Oslo
Ole Kristian Fauchald
Affiliation:
Universitetet i Oslo
Malcolm Langford
Affiliation:
Universitetet i Oslo
Get access

Summary

It is often claimed that investment arbitration is used as a means of last resort that occurs as a response to the realization of two types of shock towards foreign investors – one from severely dysfunctional governance at the national level and the other from an economic crisis. With an original dataset that includes investment claims filed under the rules of all arbitration institutions as well as ad hoc arbitrations, the authors test links between governance, economic crises and investment arbitration. They find that poor governance, understood as corruption and lack of rule of law, has a statistically significant relation with investment arbitration claims, but economic crises do not when considered separately. Yet, bad governance and economic crises considered together are a good predictor of when countries will get hit by investment arbitration claims. Their findings are of great significance to important questions regarding outcome legitimacy, in particular whether ISDS produces legitimate outcomes if used to redress or mitigate severe governance deficiencies, and whether its use in the context of economic crises hurts countries in great difficulty and thereby undermines efforts to arrive at mutually satisfactory solutions.

Type
Chapter
Information
The Legitimacy of Investment Arbitration
Empirical Perspectives
, pp. 365 - 393
Publisher: Cambridge University Press
Print publication year: 2022

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×