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13 - Who Has Benefited Financially from Investment Treaty Arbitration? An Evaluation of the Size and Wealth of Claimants

from Part III - Output Legitimacy

Published online by Cambridge University Press:  06 January 2022

Daniel Behn
Affiliation:
Universitetet i Oslo
Ole Kristian Fauchald
Affiliation:
Universitetet i Oslo
Malcolm Langford
Affiliation:
Universitetet i Oslo
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Summary

The legitimacy of ISDS appears to depend in part on an expectation that it benefits smaller businesses, not just large multinationals and the super-wealthy. This chapter collects data on size and wealth of the foreign investors that have brought claims and received monetary awards due to ISDS. Categories for the size and wealth of foreign investors are compared to the size of damage awards, which helps determine that the primary beneficiaries in ISDS cases have been companies with annual revenue exceeding US$1 billion and individuals with net wealth in excess of US$100 million. The main finding is that the beneficiaries of ISDS-ordered financial transfers, in the aggregate, have overwhelmingly been wealthy individual investors and large companies – and especially extra-large companies. The authors also note that the awards gained by small companies are not so different from their legal costs.

Type
Chapter
Information
The Legitimacy of Investment Arbitration
Empirical Perspectives
, pp. 394 - 423
Publisher: Cambridge University Press
Print publication year: 2022

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