Resolution of Investment Disputes Referring to the ICSID Conciliation Rules

Abstract

The purpose of the Center established by the ICSID Convention, is to facilitate the settlement of investment disputes through conciliation and arbitration mechanisms under Article 1 of the Convention. Related with the mentioned purpose, in this article, the resolution of investment disputes has been analyzed in the light of ICSID Conciliation Rules of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID). Including the conciliation procedure prescribed in ICSID Conciliation Rules, the corner stone of this article constituted under the conciliation process as an amicable settlement method. Conciliation, where an investment dispute is involved, is often an alternative solution to the arbitral proceedings. As of many aspects, conciliation can be as effective as an arbitration in order to achieve a consensus via eliminating the disadvantageous features of arbitral proceedings thanks to its more flexible structure. Whether the binding feature of the conciliator report at the end of the process is one of the most important factors in the choice of this method. Conciliation should not be seen as an advisory process merely. Within the framework of this article, the characteristics of conciliation process has been examined considering the opposite opinions that advocate the a nonfunctionality and nonbinding effect of conciliation.