Conflict

UNIT V:

CONFLICT IN INTERNATIONAL BUSINESS & NEGOTIATIONSConflict

Conflict is a state of discord caused by the actual or perceived opposition of needs, values and interests. A conflict can be internal (within oneself) or external (between two or more individuals). Conflict as a concept can help explain many aspects of social life such as social disagreement, conflicts of interests, and fights between individuals, groups, or organizations. In political terms, "conflict" can refer to wars, revolutions or other struggles, which may involve the use of force as in the term armed conflict. Without proper social arrangement or resolution, conflicts in social settings can result in stress or tensions among stakeholders. When an interpersonal conflict does occur, its effect is often broader than two individuals involved, and can affect many associate individuals and relationships, in more or less adverse, and sometimes even humorous way.

Conflict as taught for graduate and professional work in conflict resolution (which can be win-win, where both parties get what they want, win-lose where one party gets what they want, or lose-lose where both parties don't get what they want) commonly has the definition: "when two or more parties, with perceived incompatible goals, seek to undermine each other's goal-seeking capability".

One should not confuse the distinction between the presence and absence of conflict with the difference between competition and co-operation. In competitive situations, the two or more individuals or parties each have mutually inconsistent goals, either party tries to reach their goal it will undermine the attempts of the other to reach theirs. Therefore, competitive situations will, by their nature, cause conflict. However, conflict can also occur in cooperative situations, in which two or more individuals or parties have consistent goals, because the manner in which one party tries to reach their goal can still undermine the other individual or party.

A clash of interests, values, actions or directions often sparks a conflict. Conflicts refer to the existence of that clash. Psychologically, a conflict exists when the reduction of one motivating stimulus involves an increase in another, so that a new adjustment is demanded. The word is applicable from the instant that the clash occurs. Even when we say that there is a potential conflict we are implying that there is already a conflict of direction even though a clash may not yet have occurred.

Types and modesA conceptual conflict can escalate into a verbal exchange and/or result in fighting.

Conflict can exist at a variety of levels of analysis:

community conflict

diplomatic conflict

economic conflict

emotional conflict

environmental resources conflict

group conflict

ideological conflict

international conflict

interpersonal conflict

intersocietal conflict

intrastate conflict (for example: civil wars, election campaigns)

intrapersonal conflict (though this usually just gets delegated out to psychology)

organizational conflict

intra-societal conflict

military conflict

religious-based conflict (for example: Center For Reduction of Religious-Based Conflict).

workplace conflict

data conflict

Conflicts in these levels may appear "nested" in conflicts residing at larger levels of analysis. For example, conflict within a work team may play out the dynamics of a broader conflict in the organization as a whole. (See Marie Dugan's article on Nested Conflict. John Paul Lederach has also written on this.) Theorists have claimed that parties can conceptualize responses to conflict according to a two-dimensional scheme; concern for one's own outcomes and concern for the outcomes of the other party. This scheme leads to the following hypotheses:

High concern for both one's own and the other party's outcomes leads to attempts to find mutually beneficial solutions.

High concern for one's own outcomes only leads to attempts to "win" the conflict.

High concern for the other party's outcomes only leads to allowing the other to "win" the conflict.

No concern for either side's outcomes leads to attempts to avoid the conflict.

In Western society, practitioners usually suggest that attempts to find mutually beneficial solutions lead to the most satisfactory outcomes, but this may not hold true for many Asian societies. Several theorists detect successive phases in the development of conflicts.

Often a group finds itself in conflict over facts, goals, methods or values. It is critical that it properly identify the type of conflict it is experiencing if it hopes to manage the conflict through to resolution. For example, a group will often treat an assumption as a fact.

The more difficult type of conflict is when values are the root cause. It is more likely that a conflict over facts, or assumptions, will be resolved than one over values. It is extremely difficult to "prove" that a value is "right" or "correct". In some instances, a group will benefit from the use of a facilitator or process consultant to help identify the specific type of conflict. Practitioners of nonviolence have developed many practices to solve social and political conflicts without resorting to violence or coercion.

Conflict can arise between several characters and there can be more than one in a story or plot line. The little plot lines usually enhance the main conflict.

on the hand,conflict also defines as natural disagreement resulting from individuals or groups that differ in beliefs, attitudes, values or needs. It can also originate from past rivalries and personality differences. Other causes of conflict include trying to negotiate before the timing is right or before needed information is available. The following is the causes of conflict: communication failure personality conflict value differences goal differences methodological differences substandard performance lack of cooperation differences regarding authority differences regarding responsibility competition over resources non-compliance with rules (LO)

CausesStructural Factors (How the conflict is set up)

Authority Relationships (The boss and employees beneath him/her)

Common Resources (Sharing the same secretary)

Goal Differences (One person wants production to rise and others want communication to rise)

Interdependence (A company as a whole can't operate w/o other departments)

Jurisdictional Ambiguities (Who can discipline whom)

Specialization (The experts in fields)

Status Inconsistencies

Personal Factors Communication barriers

Conflict management style

Cultural differences

Emotions

Perception

Personalities

Skills and abilities

Values and Ethics

The assertion that "the conflict is emotionally defined and driven," and "does not exist in the absence of emotion" is challenged by Economics, for example, "the science which studies human behavior as a relationship between ends and scarce means which have alternative uses. In this context, scarcity means that available resources are insufficient to satisfy all wants and needs. The subject of conflict as a purely rational, strategic decision is specifically addressed by Game Theory, a branch of Economics.

Where applicable, there are many components to the emotions that are intertwined with conflict. There is a behavioral, physiological, cognitive component.

Behavioral- The way emotional experience gets expressed which can be verbal or non-verbal and intentional or un-intentional.

Physiological- The bodily experience of emotion. The way emotions make us feel in comparison to our identity.

Cognitive- The idea that we "assess or appraise" an event to reveal its relevancy to ourselves.

These three components collectively advise that "the meanings of emotional experience and expression are determined by cultural values, beliefs, and practices."

Cultural values- culture tells people who are a part of it, "Which emotions ought to be expressed in particular situations" and "what emotions are to be felt."

Physical- This escalation results from "anger or frustration."

Verbal- This escalation results from "negative perceptions of the annoyer's character."

There are several principles of conflict and emotion.

1. Conflict is emotionally defined-conflict involves emotion because something "triggers" it. The conflict is with the parties involved and how they decide to resolve it "events that trigger conflict are events that elicit emotion."

2. Conflict is emotionally valence emotion levels during conflict can be intense or less intense. The "intensity" levels "may be indicative of the importance and meaning of the conflict issues for each" party.

3. Conflict Invokes a moral stance when an event occurs it can be interpreted as moral or immoral. The judging of this morality "influences one's orientation to the conflict, relationship to the parties involved, and the conflict issues".

4. Conflict is identity based Emotions and Identity are a part of conflict. When a person knows their values, beliefs, and morals they are able to determine whether the conflict is personal, relevant, and moral. "Identity related conflicts are potentially more destructive."

5. Conflict is relational "conflict is relational in the sense that emotional communication conveys relational definitions that impact conflict." "Key relational elements are power and social status."

Emotions are acceptable in the workplace as long as they can be controlled and utilized for productive organizational outcomes.

Conflict resolutionConflict resolution is a range of processes aimed at alleviating or eliminating sources of conflict. The term "conflict resolution" is sometimes used interchangeably with the term dispute resolution or alternative dispute resolution. Processes of conflict resolution generally include negotiation, mediation and diplomacy. The processes of arbitration, litigation, and formal complaint processes such as ombudsman processes, are usually described with the term dispute resolution, although some refer to them as "conflict resolution." Processes of mediation and arbitration are often referred to as alternative dispute resolution.

Five basic ways of addressing conflict were identified by Thomas and Kilman in 1976:

Accommodation surrender one's own needs and wishes to accommodate the other party.

Avoidance avoid or postpone conflict by ignoring it, changing the subject, etc. Avoidance can be useful as a temporary measure to buy time or as an expedient means of dealing with very minor, non-recurring conflicts. In more severe cases, conflict avoidance can involve severing a relationship or leaving a group.[3]

Collaboration work together to find a mutually beneficial solution. While the Thomas Kilman grid views collaboration as the only win-win solution to conflict, collaboration can also be time-intensive and inappropriate when there is not enough trust, respect or communication among participants for collaboration to occur.

Compromise find a middle ground in which each party is partially satisfied.

Competition assert one's viewpoint at the potential expense of another. It can be useful when achieving one's objectives outweighs one's concern for the relationship.[4]

The Thomas Kilman Instrument can be used to assess one's dominant style for addressing conflict.[5]Negotiation

Negotiation is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. It is the primary method of alternative dispute resolution.

Negotiation occurs in business, non-profit organizations, government branches, legal proceedings, among nations and in personal situations such as marriage, divorce, parenting, and everyday life. The study of the subject is called negotiation theory. Those who work in negotiation professionally are called negotiators. Professional negotiators are often specialized, such as union negotiators, leverage buyout negotiators, peace negotiators, hostage negotiators, or may work under other titles, such as diplomats, legislators or brokers.

Negotiation Stage

There comes a point, often after a stalemate is reached, where the parties decide to try negotiation to attempt to resolve the conflict. The process of initiating negotiation can be difficult as it may be interpreted as a sign of weakness. This is one reason why it is often useful for third parties to become involved.

The timing of this step is crucial. Resolution can only be achieved if the parties are willing to negotiation. In order for the conditions to be ripe, there must be both a perception on all sides that the present course is unsustainable, and a perception that there is a suitable "way out" of the conflict. In some instances, participants realize their course of action cannot succeed and they initiate discussion. At other times, outside interveners may bring the parties to the negotiating table. The timing is critical however, because if negotiation is started too early, before both parties are ready, it is likely to fail. And repeated failed negotiation efforts reinforce the notion that the conflict is intractable and can make resolution more difficult by discouraging further efforts.

Negotiation may lead to a settlement, but may also simply lead to a pause in the conflict. If the latter, there is a relatively good chance the conflict may cycle back to escalation at a later time.

Negotiations generally go through a series of stages: each group decides on its position; determines its alternatives (see BATNA), spokesperson(s), and its agenda. Once together with the other party, they share their positions, consider options, exchange concessions, perhaps reach an accord, and implement it.

A number of theories have emerged to understand negotiating tactics, their strengths and weaknesses, as well as how to respond to them. Generally speaking, negotiations are complex, drawn-out processes and a broad range of factors make each somewhat unique. Their shape depends upon the procedures that have become institutionalized, the number of parties and number of representatives present, the scope of issues under discussion, the degree to which it is part of a broader framework of negotiations, and the extent to which

they are taking place in the public eye.

WTO- Dispute Settlement BodyThe Dispute Settlement Body (DSB) of the World Trade Organization (WTO) makes decisions on trade disputes between governments that are adjudicated by the Organization.

Institutional structure

The DSB is, in effect, a session of the General Council of the WTO: that is, all of the representatives of the WTO member governments, usually at ambassadorial level, meeting together. It decides the outcome of a trade dispute on the recommendation of a Dispute Panel and (possibly) on a report from the Appellate Body of WTO, which may have amended the Panel recommendation if a party chose to appeal. Only the DSB can make these decisions: Panels and the Appellate Body are limited to making recommendations.

The DSB uses a special decision procedure known as 'reverse consensus' or 'consensus against' that makes it almost certain that the Panel recommendations in a dispute will be accepted. The process requires that the recommendations of the Panel (as amended by the Appellate Body) should be adopted "unless" there is a consensus of the members against adoption. This has never happened, and because the nation 'winning' under the Panel's ruling would have to join this reverse consensus, it is difficult to conceive of how it ever could.

Once it has decided on the case, i.e., whether the complaint had been shown to be right or wrong, the DSB may direct the 'losing' Member to take action to bring its laws, regulations or policies into conformity with the WTO Agreements. This is the only direction that emerges from a WTO dispute. There is no concept of "punishment" or even restitution. The DSB will give the losing party a "reasonable period of time" in which to restore the conformity of its laws etc.

If the losing party fails to restore the conformity of its laws within the "reasonable period of time", the DSB may -- on an exceptional basis -- authorise a successful complainant to take retaliatory measures to induce action on the part of the losing party. This is very rare. Almost all WTO members "voluntarily" implement DSB decisions in time. Of course, when a losing country brings its laws etc. into conformity it may choose how to do so; indeed, it may not necessarily make the changes that the winning party would prefer.

United Nations Conference on Trade and Development (UNCTAD)The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as a permanent intergovernmental body. It is the principal organ of the United Nations General Assembly dealing with trade, investment and development issues.

The organization's goals are to "maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis." (from official website). The creation of the conference was based on concerns of developing countries over the international market, multi-national corporations, and great disparity between developed nations and developing nations.

Trade Negotiations and Commercial Diplomacy : Assists developing countries in all aspects of their trade negotiations.

The Trade Negotiations and Commercial Diplomacy Branch (TNCDB) contributes to maximizing the trade and development prospects of developing countries and economies in transition, assisting them in their beneficial integration into the globalizing and liberalizing world economy and the international trading system, and effectively implementing the Millennium Declaration commitment "to an open, equitable, rule-based, predictable, and non-discriminatory multilateral trading and financial system". The work of the Trade Negotiations and Commercial Diplomacy Branch aims to strengthen human, institutional and policy-making capacities by formulating and implementing national trade policy frameworks conducive to economic, human and social development and poverty alleviation, as well as in participating effectively in multilateral, regional and subregional trade negotiations.

LONDON COURT OF INTERNATIONAL ARBITRATION (LCIA)International credentialsThe LCIA is one of the longest-established international institutions for commercial dispute resolution. It is also one of the most modern and forward-looking.Although based in London, the LCIA is a thoroughly international institution, providing efficient, flexible and impartial administration of dispute resolution proceedings for all parties, regardless of their location, and under any system of law.Its operation and outlook are geared to ensuring that the parties may have complete confidence in its international credentials and in its impartiality.

The OrganizationThe LCIA operates under a three-tier structure, comprising the Company, the Arbitration Court and the Secretariat.The CompanyThe LCIA is a not-for-profit company limited by guarantee. The LCIA Board of Directors (made up largely of prominent London-based arbitration practitioners) is concerned with the operation and development of the LCIA's business and with its compliance with applicable company law.The Board does not have an active role in the administration of dispute resolution procedures, though it does maintain a proper interest in the conduct of the LCIA's administrative function.The Arbitration CourtThe LCIA Court is the final authority for the proper application of the LCIA Rules. Its key functions are appointing tribunals, determining challenges to arbitrators, and controlling costs.Although the LCIA Court meets regularly in plenary session, most of the functions to be performed by it under LCIA rules and procedures are performed, on its behalf, by the President, by a Vice President or by a Division of the Court.The Court is made up of up to thirty five members, selected to provide and maintain a balance of leading practitioners in commercial arbitration, from the major trading areas of the world, and of whom no more than six may be of UK nationality.The SecretariatHeaded by the Registrar, the LCIA Secretariat is based at the International Dispute Resolution Centre in London and is responsible for the day-to-day administration of all disputes referred to the LCIA.LCIA case administration is highly flexible. All cases are allocated dedicated computer and hard-copy files and computerized account ledgers. Every case is computer-monitored, but the level of administrative support adapts to the needs and wishes of the parties and the tribunal (or ADR neutral), and to the circumstances of each case. LCIA DISPUTE RESOLUTION SERVICESIntroductionThe LCIA provides an extensive administration service, which is not confined to the conduct of arbitration and ADR under its own rules and procedures. It also acts as appointing authority and administrator in UNCITRAL-Rules cases and will act as fund holder for deposits filed on account of the costs in otherwise entirely ad hoc proceedings.LCIA ARBITRATIONThe LCIA arbitration rules are universally applicable. They offer a combination of the best features of the civil and common law systems, including in particular: maximum flexibility for parties and tribunals to agree on procedural matters

speed and efficiency in the appointment of arbitrators, including expedited procedures

means of reducing delays and counteracting delaying tactics

tribunals' power to decide on their own jurisdiction

a range of interim and conservatory measures

tribunals' power to order security for claims and for costs

special powers for joinder of third parties

fast-track option

waiver of right of appeal

costs computed without regard to the amounts in dispute

staged deposits - parties are not required to pay for the whole arbitration in advance

International Chamber of Commerce

The International Chamber of Commerce is a non-profit, private international organization that works to promote and support global trade and globalization. It serves as an advocate of some world businesses in the global economy, in the interests of economic growth, job creation, and prosperity. As a global business organization, made up of member states, it helps the development of global outlooks on business matters. ICC has direct access to national governments worldwide through its national committees among others.

To attain this objective, ICC has developed a range of activities. The ICC International Court of Arbitration is a body which hears and resolves private disputes between parties. Its voluntary rule-writing for business spreads best practice in areas as varied as banking, marketing, anti-corruption and environmental management. Their policy-making and advocacy work keeps national governments, the United Nations system and other global bodies apprised of the views of the world business on some of the most pressing issues of the day.

Dispute Resolution Services

ICC International Court of Arbitration continues to provide the most trusted system of commercial arbitration in the world, having received 14000 cases since its inception in 1923. Over the past decade, the Court's workload has considerably expanded.

The Court's membership has also grown and now covers 86 countries. With representatives in North America, Latin and Central America, Africa and the Middle East and Asia, the ICC Court has significantly increased its training activities on all continents and in all major languages used in international trade.

In the world of international commerce, the ICC is perhaps best known for its role in promoting and administering international arbitration as a means to resolve disputes arising under international contracts. It is one of the world's leading institutions in providing international dispute resolution services, together with the American Arbitration Association, the London Court of International Arbitration (LCIA), the Singapore International Arbitration Centre (SIAC), and the Stockholm Chamber of Commerce.

It is common for international commercial contracts to provide for an agreed means of resolving any disputes that may arise, and the ICC is one of leading institutions for administering international arbitration. The ICC's dispute resolution services also include ADR procedures such as mediation and expert determinations.

American Arbitration Association

The American Arbitration Association (AAA), with its long history and experience in the field of alternative dispute resolution, provides services to individuals and organizations who wish to resolve conflicts out of court.

The AAA role in the dispute resolution process is to administer cases, from filing to closing. The AAA provides administrative services in the U.S., as well as abroad through its International Centre for Dispute Resolution (ICDR). The AAA's and ICDR's administrative services include assisting in the appointment of mediators and arbitrators, setting hearings, and providing users with information on dispute resolution options, including settlement through mediation. Ultimately, the AAA aims to move cases through arbitration or mediation in a fair and impartial manner until completion.

Additional AAA services include the design and development of alternative dispute resolution (ADR) systems for corporations, unions, government agencies, law firms, and the courts. The Association also provides elections services as well as education, training, and publications for those seeking a broader or deeper understanding of alternative dispute resolution.

Public Statement

The American Arbitration Association (AAA) has created a customer focused alignment of its resources through five new divisions. The divisions include Commercial; Construction; International; Labor/Employment/Elections; and State Insurance ADR disciplines. They encompass expertise in specific caseloads, which will provide AAA customers with easier access to the information they need and with more customized service that addresses the specific nuances of their industries.

As the new alignment evolves, the AAA will continue to have 30 worldwide offices, including case management centers and maintain all of the traditional AAA benefits.

INTERNATIONAL ARBITRATION

International arbitration is the established method for resolving disputes between parties to international commercial agreements. As with arbitration generally, it is a creature of contract, i.e., the parties' decision to submit any disputes to private adjudication by one or more arbitrators appointed in accordance with rules the parties themselves have agreed to adopt, usually by including a provision for the same in their contract. The practice of international arbitration has developed so as to allow parties from different legal and cultural backgrounds to resolve their disputes, generally without the formalities of their underlying legal systems.

Main Features of International Arbitration

The main reason that parties elect to have their international disputes resolved through arbitration is to avoid the uncertainties associated with litigation in national courts and the resulting need to enforce judgments in a foreign court.

As with the many domestic variants that exist in virtually all of the world's industrialized countries, international arbitration is not tied to one party's full jurisdictional procedure, unless the parties so elect and such election does not violate the fundamental due process or order public of a jurisdiction with interest in a party or subject matter in the dispute. International arbitration is sometimes described as a hybrid form of dispute resolution; consider the International Bar Association (IBA)'s Rules on the Taking of Evidence in International Commercial Arbitration.These rules neither adopt absolutely the common law jurisdictions' broad disclosure procedures (Discovery), nor follow fully the civil law in eliminating entirely the ability to engage in some disclosure-related practices. As a hybrid, arbitral rules blend common and civil systems so that parties may narrowly tailor disclosure to the agreement's particular subject matter.

As aside about the IBA Rules, David Rivkin, who chaired the committee that drafted the rules, has noted that the wide adoption of these rules in international arbitration has led in practice to an unexpected use by common law practitioners to limit disclosure and by civil law practitioners to expand it. With a possibly more intuitive cause and practical effect, arbitral tribunals will often read party election of IBA Rules as an election most akin to USA-style Discovery. This is hardly surprising given the Rules' language and the IBA's close ties through the years to the American Bar Association (ABA).

Rules of evidence represents just one example of the different practice that applies to international arbitration, and which distinguishes it from provincial forms of arbitration rooted in the procedures of a particular legal system. Similarly, international arbitral practice has given rise to its own non-country specific standards of ethical conduct which are believed to apply in international proceedings and, more to the point, to the arbitrators who are appointed to conduct them.

The Advantages of International Arbitration

For international commercial transactions, parties may face many different choices when it comes to including a mechanism for resolving disputes arising under their contract. If they are silent, they will be subject to the courts of wherever a disaffected party decides to initiate legal proceedings and believes it can obtain jurisdiction over the other party. This may not sit well with parties that need to know at the time of entering into their contract that their contractual rights will be enforced. The alternative to silence is to specify a method of binding dispute resolution, which can be either litigation before the domestic tribunal of one of the parties or arbitration. If the parties choose to resolve their disputes in the courts, however, they may encounter difficulties. The first is that they may be confined to choosing one or the others' courts, as the courts of a third country may decline the invitation to devote their resources to deciding a dispute that does not involve any of that country's citizens, companies, or national interests. The second, and perhaps more significant difficulty, is that judicial decisions are not very "portable" in that it is difficult and sometimes impossible to enforce a court decision in a country other than the one in which it was rendered.

Neutrality and Enforceability of Arbitration Awards

The ability to resolve disputes in a neutral forum and the enforceability of binding decisions are often cited as the main advantages of international arbitration over the resolution of disputes in domestic courts. And there is solid legal support for this view. An international award originating in a country that is a party to the New York Convention of 1958 may be enforced in any other country that is also a signatory, as if they were rendered by domestic courts. Here is an example of this important concept: assume that parties from countries A and B have agreed to resolve their disputes in country C, and all three countries are parties to the New York Convention. This will mean that even though the arbitration will take place in country C, the resulting award can be enforced in the countries A (or B), as if it were a court decision rendered in the domestic courts of that country. (By contrast, there is no equivalent treaty for the international recognition of court decisions, although a draft treaty was initiated in 2005.)

Thus, parties to international contracts can decide to site their disputes in a third, neutral country, knowing that the eventual award can be easily enforced in any country that is a signatory to the New York Convention, which has been ratified by a significant majority of commercial nations, with notable exceptions like Qatar, which not having ratified the New York Convention cannot be assumed to give effect to arbitration decisions rendered in other countries. An international award therefore has substantially greater executory (legal) force than a domestic court decision.

International Commercial Arbitration

The resolution of disputes under international commercial contracts is widely conducted under the auspices of several major international institutions and rule making bodies. The most significant are the International Chamber of Commerce (ICC), the International Centre for Dispute Resolution (ICDR), the international branch of the American Arbitration Association), the London Court of International Arbitration (LCIA), and the Singapore International Arbitration Centre (SIAC).

Association of international arbitration (AIA)

The association for international arbitration (AIA) was founded in 2001 in Paris. The AIA works towards promotion of ADR in general and Arbitration in particular, as a means of dispute resolution and strives to bring together the global community in this field, namely the professionals such as Judges, Lawyers, Arbitrators, Mediators or as Academicians as well Research Scholars and Students. With this unique blend of people, it is our endeavor to inculcate an interest in ADR, not only in the professional sphere but also create an awareness and interest in it among budding professionals in law schools/universities all around the globe. In the past AIA organized a Conference on critical issues raised in the The Commission of The European Communities Green Paper on Alternative Dispute Resolution in Civil and Commercial Law (Paris 2003).

For the present, the Association for International Arbitration would work from the intellectual aspect and endeavor to bring together all interested professionals in this field and work towards finding ways and means of promoting cooperation and understanding between them, to the common benefit of all. The next step in the future is a new conference about Interim Measures in International Commercial Arbitration on 5 October 2007, at the Catholic University of Brussels.

International Investment Arbitration

The last few decades have seen the promulgation of numerous Bilateral Investment Treaties (referred to as BITs), as well as Multilateral Investment Treaties, which are designed to encourage investment in signatory countries by offering protections to investors from other signatory states. One of the significant feature of BITs is that they provide investors with the ability to resolve disputes with the host states before the International Centre for the Settlement of Investment Disputes (ICSID).