The Enforcement Mechanism under the International Centre for Settlement of Investment Dispute (ICSID) Arbitration Award: Issues and Challenges

Abstract

International Centre for Settlement of Investment Dispute (ICSID) is an autonomous international institution established under the convention on the settlement of Investment Disputes between States and Nationals of other states. The conventions primary purpose is to provide facilities for conciliation and arbitration of international investment disputes. The convention sought to remove major impediments to the free international flows of private Investment poses by non-commercial risks and absence of specialized international method for investment dispute resettlement. ICSID as an impartial international forum provides facilities for the resolution of legal dispute between eligible parties through conciliation or arbitration procedure process. Usually, recourse to the ICSID facilities is always subject to the parties consent and this accounts for the binding nature of its award. Countries who have consented to the convention usually regard the ICSID arbitral decision, as that of the highest court in the land. This of course stand as the force behind the effective mechanism of enforcement for all decisions reached at ICSID arbitration center on settlement of investment disputes. As a matter of fact ICSID play an important role in the world over in the field of international investment and economic development.

Keywords: Enforcement, Arbitration, Dispute, Settlement