International Investment Law in the Context of Jus Post Bellum : Are Investment Treaties Likely to Facilitate or Hinder the Transition to Peace?

This article seeks to explore how international investment treaties interact with the transition from armed conflict to peace. While the protection of foreign investors in conflict and post-conflict environments is a necessary requirement for re-establishing the rule of law and attracting new capital that is needed for rebuilding the wrecked economy, the threat of excessive arbitration claims may also complicate the delicate process of creating a stable political order and pose a burden on the well-being of the state's population. The article compares traditional, government-to-government methods of settling post-conflict international claims with investor-state arbitration. Unlike investors, governments will usually base their decision about raising a conflict-related claim on a number of political, economic and strategic considerations, such as conditions for sustainable peace. These considerations will often reflect in the amount and the method of payment of compensation for conflict-inflicted losses. The article looks at the practice of investment arbitration tribunals and identifies certain interpretive tools that take better account of post-conflict realities and lead to more balanced awards