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Vol. 44 (2024)
General Articles

Current State and Future of Investor-State Mediation

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  • Markiyan Malskyy
Markiyan Malskyy
Lviv Polytechnic University

Published 2025-11-14

Keywords

  • ADR,
  • arbitration,
  • mediation,,
  • investor–state dispute settlement,
  • Working Group III

How to Cite

Current State and Future of Investor-State Mediation. (2025). Polish Yearbook of International Law, 44, 177-202. https://doi.org/10.24425/PYIL.2025.156719

Abstract

To protect the investments of their investors abroad, countries began to 
conclude investment treaties among themselves in the middle of the 20th century. 
The main feature of such treaties has been the availability of an effective mechanism 
for resolving disputes between a state and an investor. Most of them provide for arbi
tration, the effectiveness of which is universally recognised. However, arbitration has 
come under criticism in recent years. Among the main reasons are the inconsistency 
of awards, the high cost and long duration of proceedings, the lack of transparency 
and other issues. Due to that, practitioners and scholars call for reform and suggest, 
inter alia, resorting to investor–state mediation. In this regard, many developments 
have been made to increase the use of mediation in future. For example, the Working 
Group III reform is currently taking place, the Singapore Convention has been signed, 
arbitration rules and guidelines have been issued, etc.

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