A Matrix Analytical Framework for Investment Disputes and Their Settlement

Abstract

This article proposes a matrix analytical framework (MAF) based on a tridimensional analysis of the economic, political, and social implications of investment disputes. It considers that an appreciation of the three dimensions should be the starting point for the design of investment dispute settlement systems or their reform. Different methods of dispute resolution should be applied to the different categories of investment disputes, depending on the level of their involvement in these dimensions. At different historical stages, different emphasis may be placed on certain dimensions. Applying such a matrix analysis, specific control techniques to exclude, economically filter, politically control, or socially monitor the Investor-State Dispute Settlement (ISDS) mechanism are analysed to match the varied needs of different investment disputes.