2016 | Octubre 25
The idea behind a Brics-centric dispute resolution mechanism stems from challenges faced frequently by developing countries in existing international arbitration frameworks. Arguably, the current international framework, particularly in investment treaty arbitrations, is extremely unfavourable for developing countries. There is inequitable representation of arbitrators from developing countries on such panels, resulting in a level of obliviousness regarding the socio-economic conditions prevailing in developing nations. This often leads to adverse economic ramifications of arbitral awards for these countries.
In an attempt to increase economic cooperation, the discussions at the Brics summit in Ufa, Russia last year culminated in the constitution of the National Development Bank (NDB), a transnational bank, rivalling the IMF and other institutions historically dominated by western countries.