ABSTRACT
This chapter examines the extent to which arbitral tribunals have invoked the principle of good governance, as understood in the New Delhi Declaration, in resolving investor-state disputes arising under international investment treaties (IITs). It analyses the relevant jurisprudence and describes the findings of specific arbitrations that apply sub-principles of good governance, specifically transparency, corruption and due process. Several arbitral tribunals have referred to principle of transparency, almost always in the course of determining whether a host State has breached fair and equitable treatment (FET) standard of an investment treaty. The first mention of transparency was in the Maffezini v Spain decision. Arbitral tribunals have considered the issue of corruption in two contexts: first, situations in which the host State retaliates against a foreign investor that has refused to pay a bribe requested by host State; and second, situations in which a foreign investor pays a bribe to host State and subsequently seeks to invoke the protections of an investment treaty.
