Introduction

All-powerful global institutions may be out of fashion. But, as recent arbitration rulings show, they may be exactly what the world needs. Czech taxpayers must think poorly of what passes for the world system of investment arbitration. Just a year ago, the Czech Republic was forced to pay $355 million to a foreign investor--CME Czech Republic B.V.--which had won the award through arbitration under an investment treaty. But the American mogul Ronald Lauder, who controls CME, lost an identical claim under a second investment treaty. Faced with two opposing rulings on the ...