5.3: Arbitration
Arbitration is another alternative dispute resolution that differs in its process and function from mediation. In arbitration, a third party reviews evidence in a dispute and makes a legally-binding decision for all involved. Arbitration can be used to resolve international, commercial, investment, and interstate conflicts. You will learn about the advantages and limitations of this type of ADR and how arbitration was used historically to settle boundary disputes.
Read pages 3–5 (Introduction, Context, and Importance), page 7 (AMD Results), and page 23 (Conclusion). This paper describes foreign investors' need to have assurances that disputes in other countries are settled fairly and promptly. Unfortunately, there is great inconsistency among global economies regarding policy and best practices. There are several opportunities for improvement, including greater flexibility in domestic arbitration regimes, reduction of the length of arbitration proceedings in many parts of the world, and specialized courts with the capacity and experience to deal with commercial arbitral awards. Significantly, many economies have acceded to the New York Convention to recognize and enforce arbitral awards.