Examine the Arguments for and Against Investor State Dispute Systems

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The Answer is ISDS can be used to encourage investment as they help to give reassurance to investors that their outlay would be protected. Using such a mechanism allows investors to take action against hostile measures taken by governments without having to go through domestic courts who might be inclined towards their own government. As a result, countries which abided by such mechanisms would be able to attract more investment and so encourage economic growth including jobs and wage gains for their citizens.
There is, however, wide-spread concern that such protection for investors is undemocratic and a threat to national sovereignty. The policies of democratically elected governments can therefore be overturned or halted by the use of ISDS or just the threat of action being taken - see for example the Vattenfall cases.
There are also concerns about the ISDS themselves. In particular, criticism has been made of the lack of judicial independence as it is felt that there is a bias towards investors. Many of the ISDS also conduct their proceedings in private and so there is a lack of external scrutiny of their operation.

Examine the Arguments for and Against Investor State Dispute Systems

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