Professor Susan D. Franck, Associate Professor of Law, recently published her article, The ICSID Effect? Considering Potential Variations in Arbitration Awards, 51 Va. J. Int’l L. 977 (2011), in the Virginia Journal of International Law.
Professor Franck’s article quantitatively assesses whether International Centre for the Settlement of Investment Disputes’s (ICSID) arbitration awards were substantially different from arbitration awards rendered in other forums. ICSID is a controversial subject, with the US re-drafting its model investment treaty recently and Australia rejecting investment treaties outright. The article examines variation in the amounts claimed and outcomes reached to evaluate indicators of bias. Ultimately, Prof. Franck’s results failed to reveal a reliable statistical relationship. In light of the initial quantitative findings, while recognizing the need for replication and methods to facilitate qualitative and normative assessments of ICSID, Prof. Franck concludes by suggesting that there may be value in implementing tailored reforms and structural safeguards to address arguable concerns of bias, improve the management of international economic conflict, and minimize a potential backlash to the international investment system.
Congratulations to Professor Franck.