ANALAYTICAL STUDY OF THE CHALLENGES AND SOLUTIONS IN THE ENFORCEMENT OF ARBITRAL AWARDS UNDER INTERNATIONAL INVESTMENT AGREEMENTS IN DEVELOPING ECONOMIES

Abstract

In order to foster a stable investment climate in developing economies, the enforcement of arbitral awards under International Investment Agreements (IIAs) is crucial. However, the reliability and predictability of arbitration as a dispute resolution mechanism is undermined due to the unique challenges such as inconsistent legal frameworks, lack of judicial independence, political interference, and economic constraints in these countries. While focusing on the legal, political and economic aspects of enforcement of arbitral awards, this study covers a case-based analytical methodology to investigate these systemic barriers across various jurisdictions. This research encompasses a systematic framework to identify key obstacles, including procedural irregularities, judicial hesitancy, and the misuse of public policy exceptions.

Important conclusions drawn by the research shows that strengthening enforcement mechanisms requires the creation of specialized arbitration courts, anti-corruption initiatives, and the harmonization of domestic laws with international standards. Furthermore, regional cooperation and increased transparency in arbitration processes are emphasized as successful strategies for mitigating enforcement disparities. The recommendations in the study aims to empower policymakers and legal reformers to establish a predictable and stable legal framework that increases investor confidence and promotes economic growth.By bridging gaps in existing literature, this study underscores the importance of  continuous reforms and international cooperation in arbitration frameworks. Future avenues include integrating advanced technologies to expedite enforcement and exploring the role of regional arbitration councils in standardizing procedures. These efforts are significant for transforming developing economies into more appealing destinations for foreign investment and ensuring the credibility of IIAs in international arbitration.