As the amount of compensation being awarded in investment tribunals rises, this report analyzes how it is calculated in other international courts and tribunals to help inform reform processes that seek to address the negative socio-economic impacts of investment treaties.
In recent years, investor–state arbitral tribunals have awarded increasingly high amounts of compensation to foreign investors, which can exacerbate the negative impacts of investment treaties on people and the economy in host states. This paper contributes to discussions on how to address this issue by comparing approaches used to award compensation in investment tribunals with those used by some of the most active and/or high-profile international courts and tribunals in international private property claims cases.
From this comparative analysis, the paper identifies the following options for states and other proponents to consider when considering investor–state dispute settlement reform: