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Former communist states now witnessing a growth in privatisation are increasingly turning to arbitration to resolve disputes, a new survey has revealed
The number of Central and Eastern European parties involved in arbitrations increased by 68 per cent in 2001, according to an International Chamber of Commerce survey. There was a 27.5 per cent rise in the number of parties from South and East Asia. India had the highest in the region, with 43 parties, followed by Japan with 31. Some 42 Greek parties were involved in arbitrations, double its previous highest number, and 37 Turkish parties, representing a significant increase on recent years. Latin American and Caribbean parties grew at a higher rate than in the US. Russian Federation and Polish parties appeared 26 and 15 times respectively, a return to the previous 1999 high after a dip in 2000. Switzerland has the world's highest number of arbitrators with 128, followed by the UK with 117, France with 113 and the US with 100. There were more higher value cases in 2001 than ever before. Some 4.4 per cent of cases were worth between $50m-$100m (£31.8m-£63.7m) and 3 per cent were in the $100m-$1bn (£63.7m-£636.9m) range. The number of energy and IT cases doubled between 1999 and 2001; alongside construction and engineering they represent 38 per cent of cases arbitrated. 2001 also saw the first environment protection cases being arbitrated. France was the most frequently selected venue for an arbitration. There were 142 French parties involved in International Chamber of Commerce arbitrations in 2001, representing the highest number of appearances among European states and the second highest in the world. The US had the highest global number with 195 parties. After France came Germany (118 parties), the UK (89) and Switzerland (49). Seventeen arbitrators in 2001 quit, but only two were replaced. Two out of 33 challenges by parties of the choice of arbitrator were upheld.