Advantages and Disadvantages of Transparency and Public Participation in Investment Arbitration
Advantages and Disadvantages of Transparency and Public Participation in Investment Arbitration

Summary/Abstract: Transparency and public participation in international arbitration proceedings is a relevant issue that has become the subject of many disputes over the last years. Given that international investment arbitration is both public and private in nature, there is a legitimate interest from the public to have increased access, and screening of, previously secretive proceedings. After all, damages awarded to investors by arbitral tribunals are paid almost exclusively from the public purse. Therefore, this paper makes the case for more transparency and access to arbitral proceedings when public interest and welfare are at stake. It analyzes the advantages and disadvantages of more open proceedings from the point of view of the investor, State authorities and the civil society, and takes into account the possible effects this might have on a number of issues such as: duration of proceedings, public interests or sensitive business information. It concludes that although transparency and public participation may, in some cases, hinder the arbitral process, it represents a small price to pay for alleviating public concerns about the ability of international corporations to influence public policies by threatening state authorities with international arbitration.

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