Please remain seated

The ICSID's new rules failed to guide the alternative dispute resolution to the metaverse era unhooking it from the physical seat. 

 

In October 2016, the ICSID launched a large scale process for the amendment of the Centre's Rules. The consultations were effectually concluded on January 20th, 2022, and the ICSID Member States are expected to cast a vote on the amended rules by March 21, 2022. If approved, the updated rules would go into effect on July 1, 2022. 

As for the amendments, they are mainly aiming to deal with a series of diverse issues arisen during the ICSID's almost 60-year experience. Pursuant to the Center, first the changes are intended to modernise the rules based on case experience. Second, the amendments will make the process increasingly time and cost effective while maintaining due process and a balance between investors and States. Third, ICSID hopes that the rule amendments will make the procedure less paper-intensive, with greater use of technology for transmission of documents and case procedures.

On the face of the new rules, we would not share the Centre's optimistic opinion that it achieved to modernise its procedures by fully capitalising on the technological means. Apart from the compulsory electronic exchange of the files and documents, the ICSID did not take the unique chance to digitalise the arbitral proceedings. Thus, instead of introducing the remote attendance as the mainstream means of holding hearings, it only provides such option as a mere possibility. 

ICSID could have led the dispute resolution to the metaverse era. Unfortunately, due to its reluctance, the Centre's new rules not only contribute little to the time, cost and eco-efficiency, but they also maintain grounds of controversies between the parties.