International Centre for Settlement of Investment Disputes (ICSID) is currently engaged in a review of its rules and regulations. This article considers the new rule on security for costs that ICSID is proposing to introduce as part of this review process. After outlining the existing regime for security for costs in ICSID arbitration, the author analyses the text of the proposed new rule (Draft Rule 51) and explains how it lacks balance and will work in favour of respondent States if it is adopted as currently drafted. The writer concludes by proposing certain amendments to Draft Rule 51, the intention of which is to ensure that the new rule strikes a proper balance between the interests of investors and States as users of the ICSID system.
Journal of International Arbitration