ACHIEVING EQUALITY IN THE SETTLEMENT OF INVESTMENT DISPUTES: THE LOCAL REMEDIES RULE AS A PANACEA

Abstract

This paper critically analyses the current regime of investment arbitration which is adopted internationally for the settlement of investment disputes between foreign investors and host States. By adopting a doctrinal approach, the author  argues  that  it  ishigh  time  national  courts  took  an  active  part  in  the  resolution  of  substantive  aspects  of investment  disputes  and  this  can  be  achieved  by  promoting  the  principle  of  exhaustion  of  local  remedies  under international  law.  This  is  because  the  objective  of  investment  arbitration  should  be  to  work  towards  providing examples for national courts in host States, particularly developing countries, to follow in hopes that these countries can reform their own flawed regulatory institutions for settling such disputes.