The Balance Of Public And Private Interests In The Field Of International Investment Arbitration

With the trend of economic globalization gradually developed, the international economic exchanges become more frequent and the number of international investments become more and more. Withe the increase of international investment, the international investment disputes are also increasing. The way which used to solve the international investment disputes is still the way of arbitration. This paper mainly discusses in the arbitration of international investment, involves the public interests and private interests between the foreign investors and the host country. Because of the kind of international investment arbitration in relation to the host countries and foreign investors, the legal relationship main body is both the main body of public law and also private law. Host country is not only a country, but also be involved with the resources of the public, the public construction and infrastructure and so on. Such investment disputes are so difficult to solve. Before the rules of international investment arbitration,the way to solve the conflicts between host country and private investor is through consultation, negotiation, diplomatic protection, but in the development of the investment arbitration of later rised way of solve the conflicts of host country and foreign investors used to tend to favour private interests but ignore the problems of public interests of the host country.With the development of investment liberalization, private investors plays an important rule in the international investment, and not at a disadvantage position. With the continuous development of multinational companies and the growing strength of them, the multinational companies in the host country’s growing influence, even enough to affect the economic development and economic policy making of the host country.As a result, these conflicts between foreign investor and host country is growing.Because international investment arbitration originated in general international commercial arbitration, and inherited the institutional tendency of the international commercial arbitration, the mode of international investment decision used for commercial arbitration by the arbitration tribunal. In the arbitration international investment, the arbitrator on private property is inviolable, regardless of the international sovereignty and the legitimacy of public interest. In international commercial arbitration, usually handle disputes involved are commercial private interests of both sides, there are few cases involve the public interest, in such a mode ofinternational investment arbitration therefore also avail himself of the principle of private property is inviolable, and did not emphasize to protect the interests of the public, thus make the host country often face losing or huge compensation problem. In recent years, however, as some scholars have stepped up to the study of the theory of the balance of public and private interests, and the arbitration tribunal to involve the interests of the public and private interests case imbalances, balance the public and private interests under the background of international investment arbitration is no longer an ideal problems.