INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES (ICSID)

The International Centre for Settlement of Investment Disputes (ICSID) is an autonomous international institution established to provide facilities for conciliation and arbitration of international investment disputes. ICSID plays an important role in the field of international investment and economic development and it established under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID or the Washington Convention). The Convention sets forth ICSID's mandate, organization and core functions. It was opened for signature on March 18, 1965 and entered into force on October 14, 1966.

The ICSID Convention is a multilateral treaty formulated by the Executive Directors of the International Bank for Reconstruction and Development (IBRD). Although it is technically a separate entity, ICSID is chaired by the president of the World Bank, and the two organizations are well integrated, with their annual meetings being held in concert, and with ICSID’s operating expenses coming from the World Bank Group’s budget. The Convention sought to remove major impediments to the free international flows of private investment posed by non-commercial risks and the absence of specialized international methods for investment dispute settlement. ICSID was created by the Convention as an impartial international forum providing facilities for the resolution of legal disputes between eligible parties, through conciliation or arbitration procedures. Recourse to the ICSID facilities is always subject to the parties' consent.

The ICSID has 158 member States which have signed the center's convention, which includes 157 United Nations member states and Kosovo.

Editor: Giovanni AVERSA