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Foreign Investment and the Settlement of Investment Disputes

In: Other Topics

Submitted By dorottyanagy
Words 1099
Pages 5
Table of Contents

Introduction 2

1. The definition of foreign investment 3

2. Dispute settlement mechanisms of investment agreements 6

3. International Centre for Settlement of Investment Disputes 9

3.1. General provisions 9

3.2. Procedural rules under the Washington Convention 11

Jurisdiction 12

The procedure 14

The advantages of ICSID procedure 17

3.3. Important cases of ICSID arbitration 19

Occidental Petroleum Corporation v the Republic of Ecuador case 19

Phoenix Action Ltd. v. Czech Republic case 21

Vigotop Limited v Hungary case 23

3.4. The Role of Precedent in ICSID Arbitration 25

4. Multilateral Investment Guarantee Agency 28

4.1. General Provisions 28

4.2. MIGA and the settlement of investment disputes 31

Interpretation and Application of the Convention 32

Disputes between the Agency and Members 32

5. Conclusion 35

Bibliography 38


In my thesis, my topic is foreign investment and the relating regulation system, aimed at increasing economics in the area of international relations. First, I would like to present the definition of foreign investment, since in the past decade, investment, especially foreign direct investment has come to play a major role in the internationalization of business. The most profound effect has been seen in developing countries, where foreign direct investment flows have highly increased. Foreign direct investment is a key element in international economic integration, since it creates direct, constant and long-term relations between economies.
Then I am going to summarize the dispute settlement mechanisms of investment agreements, especially the ICSID system, which is the most favorable dispute settlement method in the area of investments. Finally I am going to deal with the general provisions and aim of...

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