Edited by Christian J. Tams, Stephan W. Schill and Rainer Hofmann
Chapter 2: International investment arbitration and the global financial system: Are they ‘yin’ and ‘yang’ or like oil and water?
Global stability is a key objective of the global financial system. Against this background, disputes between international private creditors and States arising during currency and sovereign debt crises are increasingly resolved through ISDS. This chapter investigates the relationship, both complementary and conflictual, between international investment law and the global financial system. The financial literature tells us that it would be simplistic, if not erroneous, to view financial crises through the measure of default versus non-default. Empirical studies evidence that, over the course of a crisis, States may not be cooperative with creditors, or even with the institutions of the global financial system, at the risk of jeopardising global stability. Thus, ISDS complements the global financial system by providing private international creditors with a judicial forum for the resolution of such disputes. On the other hand, ISDS has, on multiple occasions, interfered with this system which greatly influenced contemporary treaty practice. Keywords: global financial system, international investment arbitration, IMF, sovereign debt, State’s coercive behaviours; financial crisis
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.