IN THE past 16 years, investors have launched many claims under investment treaties, mainly against developing and former communist countries. The question that arises is whether international investment treaty arbitration is suitable for developing countries.There is no doubt that investment-treaty arbitration is an innovative system of international arbitration. It is designed to resolve regulatory disputes between individual investors and states.However, private arbitration in the regulatory sphere conflicts with principles of judicial accountability and independence. In fact, it undermines the integrity of the legal system. This is not new. In South Africa, there are complaints about lawyers who prefer to transfer a complex commercial case to private arbitration, because the presiding judge is black. This undermines public confidence in the judiciary and makes a mockery of the justice system.Furthermore, international arbitration evolved due to the lack of confidence in the judi...
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