The Pragmatism and Justice of International Investment Arbitration

Abstract

International investment arbitration has become a contentiously discussed issue in Europe. Opposing voices, however, too often disregard the merits of this method of dispute settlement. This often leads to categorical opposition within the public rather than concrete proposals. This paper aims at formulating a constructive critique, viewing the controversy as a conflict between pragmatism and justice. Drawing on Jurgen Habermas and Rainer Forst, it is argued that the system lacks legitimacy because it is not sufficiently subordinated to common societal norms. To gain control over the international investment arbitration system and with it basic legitimacy, the paper builds up to suggest an international investment appeals facility.