Bribery and Other Serious Investor Misconduct in Asian International Arbitration

Abstract

Bribery and other serious illegal behaviour by foreign investors face wide condemnation in any society. Yet there remains a lack of consensus on the consequences of corruption and illegality affecting international investment, and especially in investment arbitration—a transnational procedure to resolve disputes between a foreign investor and a host state. A core issue is whether a foreign investor violating a host state's law should be awarded protection of its investment, as per its contract with the host state and/or the applicable investment or trade agreement between the home state and the host state. Some suggest such protection would be unnecessary, as the investor committed a crime in the host state, while others attempt to establish an equilibrium between the investor and the host state. Some others claim to protect investment, invoking the sanctity of promises made. This book explores Asian approaches towards the issue, setting it in the wider political economy and domestic law contexts. It also considers the extent to which significant states in Asia are or could become ‘rule makers’ rather than ‘rule takers’ regarding corruption and serious illegality in investor–state arbitration.