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International Investment Arbitration and Corruption Claims: An Analysis of World Duty Free v. Kenya

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  • Odumosu Ibironke T.

Abstract

In some recent investment arbitration cases, tribunals have been presented with facts that suggest that foreign investors and public officials in the host state have engaged in corrupt practices. In its analysis of the extension of the anti-corruption campaign to investment arbitration, this article examines the legal measures adopted to combat corruption before investor-state arbitral tribunals in light of a study of World Duty Free Co. Ltd. v. The Republic of Kenya. An examination of the background to the World Duty Free v. Kenya dispute, the broader circumstances that surrounded the dispute, and Kenya's political climate that was not within the tribunal's purview, demonstrate that investment arbitration tribunals are not sufficiently equipped to exhaustively tackle corruption. Given the intricate political and public nature of corruption, responses to foreign investment-related corruption also have to be multi-faceted.

Suggested Citation

  • Odumosu Ibironke T., 2011. "International Investment Arbitration and Corruption Claims: An Analysis of World Duty Free v. Kenya," The Law and Development Review, De Gruyter, vol. 4(3), pages 88-129, September.
    • Handle: RePEc:bpj:lawdev:v:4:y:2011:i:3:n:5
    DOI: 10.2202/1943-3867.1118
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    References listed on IDEAS

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    1. Neumayer, Eric & Spess, Laura, 2005. "Do bilateral investment treaties increase foreign direct investment to developing countries?," World Development, Elsevier, vol. 33(10), pages 1567-1585, October.
    2. Elizabeth Asiedu & James Freeman, 2009. "The Effect of Corruption on Investment Growth: Evidence from Firms in Latin America, Sub‐Saharan Africa, and Transition Countries," Review of Development Economics, Wiley Blackwell, vol. 13(2), pages 200-214, May.
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