Originally from World Arbitration And Mediation Review (WAMR)

I. INTRODUCTION

Twenty-five years ago, choice in almost every conceivable realm of things and services one could buy was nowhere near as broad and Sans Frontières as is the case now; so it is with international arbitration. In particular, today’s consumer of international arbitration has a plethora of choices of stable, legally-sound, and attractive venues to choose from when inserting the venue into an arbitration agreement. Many such cities and countries have gone to great lengths to ensure that their arbitration laws, facilities, and legal communities function at the highest international standards. Several governments have taken a serious interest in the development of their respective countries in attracting international arbitration to their shores, noting both the immediate economic benefit of parties’ spending money on facilities, hotels, restaurants, and lawyers, and also the intangible benefit which a reputation for being a venue for international arbitration confers. That intangible benefit can be expressed simply: if a city or country holds the confidence of international parties such that they are happy to have their dispute resolved there, then that is a tangible vote of confidence in the rule of law in that country.

The rule of law is of great importance to countries in attracting investment. The former Chairman of the Federal Reserve Bank of the United States often remarked that the rule of law is the single most important contributor to economic growth.1 An article published in the Economist in recent years noted that: