Chapter 9 The Settlement of Disputes Regarding Foreign Investments: The Role of the World Bank, with Particular Reference to ICSID and MIGA

Abstract

The World Bank (hereinafter referred to as the Bank) is often regarded as simply an international institution which provides loans for productive purposes in its member countries. However, the Bank’s mandate is not limited to making loans. Indeed, the founders of the Bank thought that direct lending would be a secondary function of the institution.1 Early plans for the Bank show that it was expected that the principal function of the Bank would be “to encourage international investment by private investors.”2 The Articles of Agreement of the Bank3 reflect this expectation. Article I of the Articles of Agreement emphasizes the role of the Bank in “facilitating the investment of capital for productive purposes”4 and describes the promotion of private foreign investment as one of the chief objectives of the Bank.5