Arbitrating Commercial Disputes Methodology

The Arbitrating Commercial Disputes indicators quantify 3 aspects of arbitration regimes that are essential for foreign and domestic companies seeking to resolve commercial disputes outside of domestic courts. These factors are the strength of a country’s arbitration laws (including adherence to international conventions on arbitration); the ease of process for the parties conducting arbitration proceedings in that country; and the extent to which domestic courts assist the arbitration process, both during the proceedings and regarding the enforcement of arbitral awards. These 3 factors also measure, to a certain extent, the ease of resolving disputes through commercial arbitration between foreign-owned companies and state entities, and other elements of alternative dispute resolution (ADR), such as the use of mediation. iThese elements are considered essential to the operation of an effective arbitration regime that prioritizes predictability, transparency, efficiency, due process and party autonomy.

There are 2 types of questions asked in the Arbitrating Commercial Disputes indicators:

  • Legal questions, measuring the strength of laws and regulations applicable to foreign-owned companies in the respective country. Responses to these survey questions are based on the provisions of the laws, regulations and judicial precedents, if applicable. These questions are therefore de jure, meaning that they measure what the law states.
  • Procedural questions, measuring the duration and difficulty of arbitration related procedures. Responses to these survey questions are based on the respondents’ practical experience. These questions are de facto, meaning that they measure what exists in fact, or in other words, practice on the ground.

Each index takes values from 0 to 100, where a score of 100 denotes a regime offering most reassurance and security to foreign companies interested in commercial arbitration in their country of incorporation.

  • Strength of laws index (0-100)
  • Ease of process index (0-100)
  • Extent of judicial assistance index (0-100)

The 3 tables below present the complete list of survey questions which comprise the 3 indexes. For each index, the last column indicates how each question was scored. For all 3 Tables, a simple binary system is used where a good practice answer is scored with a “1” and a poor practice answer is scored with a “0”.

For each index, there are also additional “bonus” questions: 1 bonus question for Strength of laws index (1 point); 2 bonus questions for Ease of process index (2 points); and 2 bonus questions for Extent of judicial assistance index (2 points). These bonus questions provide additional points for countries that implement good arbitration practices, even though they are not considered essential for an effective arbitration regime. Countries that do not implement such practices are not penalized. They simply do not receive the bonus points. In other words, the maximum score attainable for a country is 100, as all countries are judged on a scale of 0-100.

Where there are several parts to the question, they are scored as a decimal of 1. For instance, a question with parts (a), (b), (c) and (d) will be assigned 0.25 as the best score for each part.

Where there are several categories to answer one question, the highest value assigned is 1, and the lowest 0. For instance, if there are 3 possible categories to answer a question, “Almost always”, “Usually” and “Rarely”, the first category will receive a value of 1, the second category will receive a value of 0.5 and the third category will receive 0.

A handful of countries have no arbitration practice. These countries are not included in the scoring for the indexes where they lack practice, and this is indicated in their country page for example Afghanistan and Solomon Islands in the Extent of judicial assistance index.

Strength of laws index

The Strength of laws index compares the strength of countries’ arbitration regimes by examining the laws and regulations that a country relies on to regulate its domestic and international arbitrations, as well the country’s adherence to specific international conventions. Specifically, 3 concepts are examined in the Strength of laws index:

  • Legislation: what laws on alternative dispute resolution are in place, whether different laws apply to domestic and international arbitrations taking place in that country, and whether the country has entered into leading international conventions on arbitration, specifically the 1958 New York Convention and the ICSID Convention;
  • Arbitrability: whether the law restricts the subject matter of commercial disputes being submitted to arbitration, including certain disputes arising out of contracts with state entities; and
  • Form: whether the law restricts the form that an arbitration agreement can take in order to be legally binding on the parties. For instance, some laws require that an arbitration agreement must be in writing and in the main contract. Other laws state that the arbitration agreement can be in a separate document and incorporated into the contract by reference.

The table below presents the complete list of survey questions which comprise the Strength of laws index. There are a total of 10 points spread over 10 equally weighted questions, plus an additional bonus question.

Composition of the Strength of laws index

Survey questions comprising the Strength of laws index

How the question was scored

Example: Bangladesh

Does your national law recognize arbitration as a means of dispute resolution between private parties in commercial transactions?

“Yes” = 1 or “No” = 0

Yes = 1

Has your country enacted a specific statute on commercial arbitration?

“Yes” = 1 or “No” = 0

Yes = 1

Please indicate the Web site(s) where the statute(s) can be consulted

“Web site” = 1 or “No Web site” = 0

No = 0

Are the following types of disputes arbitrable under your country’s national law:

  1. Disputes over rights over immoveable property located within your country;
  2. Any intra-company disputes;
  3. Disputes involving shareholder arrangements;
  4. Disputes involving patents/trademarks (excluding administrative actions)?

  1. “Yes” = 0.25 or “No” = 0
  2. “Yes” = 0.25 or “No” = 0
  3. “Yes” = 0.25 or “No” = 0
  4. “Yes” = 0.25 or “No” = 0

  1. Yes = 0.25
  2. Yes = 0.25
  3. Yes = 0.25
  4. Yes = 0.25

Under your national law, is an arbitration agreement severable from the main contract?

“Yes” = 1 or “No” = 0

Yes = 1

Can an arbitration agreement be incorporated by reference?

“Yes” = 1 or “No” = 0

Yes = 1

Can the following methods of concluding an agreement constitute a binding arbitration agreement:

  1. By electronic communication, including email?
  2. By fax?
  3. By oral agreement?
  4. By conduct, for example performance on the part of one party
  1. “Yes” = 0.25 or “No” = 0
  2. “Yes” = 0.25 or “No” = 0
  3. “Yes” = 0.25 or “No” = 0
  4. “Yes” = 0.25 or “No” = 0
  1. Yes = 0.25
  2. Yes = 0.25
  3. No = 0
  4. No = 0

Has your country ratified the 1958 New York Convention?

“Yes” = 1 or “No” = 0

Yes = 1

Under your national law, are the state and state entities allowed to enter into arbitration with foreign owned companies in connection with the following:

  1. Concession agreements;
  2. Infrastructure contracts;
  3. Contracts dealing with natural resources; and
  1. “Yes” = 0.33 or “No” = 0
  2. “Yes” = 0.33 or “No” = 0
  3. “Yes” = 0.33 or “No” = 0
  1. Yes = 0.33
  2. Yes = 0.33
  3. Yes = 0.33

Has your country ratified the ICSID Convention?

“Yes” = 1 or “No” = 0

Yes = 1

Bangladesh total points

8.49 (out of 10)

Bonus Questions

Has your country adopted a specific statute on commercial mediation or conciliation of commercial disputes?

Bonus point “Yes” = +1or No = Not scored

No = Not scored

Bangladesh total points +bonus

8.49 (out of 10)

Bangladesh index score

84.90 (out of 100)

The Strength of laws index is constructed by using the simple (equal) weighted average of the scored answers for each country for the 10 questions included, in line with the Doing Business methodology. The 1 bonus question is only scored if the country includes the practice and like all other questions, is equally weighted. Preliminary sensitivity analysis of the data to alternative sets of weights has yielded similar results. As can be seen in the example, Bangladesh has a strong legal framework, although it does not adopt a wide definition of an “arbitration agreement” requiring it to be in writing, and there are certain restrictions on contracts with state entities. It does not receive the bonus point regarding having a statute on commercial mediation, giving it, when averaged out, a total score of 8.49 out of a total possible 10 points for a final index score of 84.90.

Ease of process index

The Ease of process index compares the ease of parties to design arbitration proceedings in their chosen manner and conduct fair and predictable arbitrations in the country that respect due process. Specifically, 4 concepts are examined in the Ease of process index:

  1. Party autonomy: this is an essential value underpinning arbitration as a dispute resolution tool, and laws may enshrine it by providing parties with the freedom to select integral elements of the arbitration process including any seat of arbitration, any arbitrators and foreign counsel. These restrictions are also measured in relation to arbitrating with state entities;
  2. Tribunal integrity: measures whether the law expressly enshrines the values of independence and impartiality of arbitrators, and confidentiality of the arbitration proceedings;
  3. Choice of institutions: whether the law permits parties to choose institutional or ad hoc arbitration proceedings, whether online arbitration is available, and whether there are domestic arbitral institutions administering arbitrations and mediations; and
  4. Practice: practitioners’ estimates regarding the average period of time to establish an arbitral tribunal in the country’s most used arbitration institution, the average time to render an award in the country’s most used arbitration institution, how frequently state entities include arbitration clauses in their contracts with foreign companies and how frequently mediation is used to resolve commercial disputes between businesses.

The table below presents the complete list of survey questions which comprise the Ease of process index. There are a total of 35 points spread over 35 equally weighted questions, plus additional 2 “bonus” questions.

Composition of the Ease of process index

Survey questions comprising the Ease of process index

How the question was scored

Example: Romania

In a domestic/international arbitration, may the parties freely choose arbitrators without regard to the arbitrator’s nationality?

“Yes” = 1iior “No” = 0

No = 0 (domestic)
Yes = 1 (international)

In a domestic/international arbitration, may the parties freely choose arbitrators without regard to the arbitrator’s gender?

“Yes” = 1 or “No” = 0

Yes = 1 (domestic)
Yes = 1 (international)

In a domestic/international arbitration, may the parties freely choose arbitrators without regard to the arbitrator’s professional qualifications?

“Yes” = 1 or “No” = 0

Yes =1 (domestic)
Yes =1 (international)

In a domestic/international arbitration, may the parties freely choose any language of the proceedings?

“Yes” = 1 or “No” = 0

No =0 (domestic)
Yes =1 (international)

In a domestic/international arbitration, may the parties freely choose the method of appointing arbitrators to resolve their dispute e.g. by subscribing to arbitration institutional rules?

“Yes” = 1 or “No” = 0

Yes =1 (domestic)
Yes =1 (international)

In a domestic/international arbitration, may the parties freely choose the number of arbitrators to resolve their dispute?

“Yes” = 1 or “No” = 0

Yes =1(domestic)
No =0 (international)

In a domestic/international arbitration, does your national law expressly provide that all arbitrators must be independent and impartial?

“Yes” = 1 or “No” = 0

Yes =1 (domestic)
Yes = 1 (international)

In a domestic/international arbitration, may the parties retain a foreign lawyer not licensed to practice in your country to represent it in arbitration proceedings?

“Yes” = 1 or “No” = 0

No = 0 (domestic)
Yes = 1 (international)

In a domestic/international arbitration, under your national law, are arbitrators expressly bound to preserve confidentiality of arbitration proceedings?

“Yes” = 1 or “No” = 0

Yes = 1 (domestic)
Yes = 1 (international)

In a domestic/international arbitration, is online arbitration (electronic ADR) an available method of dispute resolution in your country?

“Yes” = 1 or “No” = 0

Yes = 1 (domestic)
Yes = 1 (international)

In a domestic/international arbitration, are parties free to choose any arbitration institution, even one that is outside of your country to administer their arbitration?

“Yes” = 1 or “No” = 0

No= 0 (domestic)
Yes = 1 (international)

Are there any arbitration institutions administering commercial arbitrations in your country?

“Yes” = 1 or “No” = 0

Yes = 1

Do the institutions have official Web sites available?

“Yes” = 1 or “No” = 0

Yes = 1

In domestic/international arbitrations, how long would you estimate the period to be from the filing of the request for arbitration to the constitution of the arbitral tribunal?

Under 30 days = 1
30-180 days = 0.66
181 – 1 year = 0.33
Over 1 year = 0

30-180 days = 0.66 (domestic)
30-180 days = 0.66 (international)

In domestic/international arbitrations, how long would you estimate the period to be from the first hearing of the arbitration tribunal on the merits to the rendering of the arbitration award?

Under 30 days = 1
31-180 = 0.66
181 – 1 year = 0.33
Over 1 year = 0

30-180 days = 0.66 (domestic)
181 – 1 year = 0.33 (international)

In an arbitration between a foreign owned company and the state/state entity, can the parties freely choose the seat of arbitration?

“Yes” = 1 or “No” = 0

Yes = 1

In an arbitration between a foreign owned company and the state/state entity, can the parties freely choose institutional arbitration or ad hoc arbitration?

“Yes” = 1 or “No” = 0

Yes = 1

In an arbitration between a foreign owned company and the state/state entity, can the parties freely choose the nationality of the arbitrators?

“Yes” = 1 or “No” = 0

No = 0

In an arbitration between a foreign owned company and the state/state entity, can the parties freely choose foreign counsel?

“Yes” = 1 or “No” = 0

No = 0

In an arbitration between a foreign owned company and the state/state entity, can the parties freely choose the applicable procedural rules?

“Yes” = 1 or “No” = 0

Yes = 1

Is there a public authority designated to handle administrative, logical and other issues related to investors’ disputes with the state or state entity?

“Yes” = 1 or “No” = 0

Yes = 1

Is there an institution in your country that administers mediation or conciliation of commercial disputes?

“Yes” = 1 or “No” = 0

Yes = 1

Romania total points

26.31 (out of 35)

Bonus Questions

How often does the state include arbitration clauses in their contracts with foreign companies?

Bonus point:
Always or nearly always = 1
Usually = 1
Occasionally = Not scored
Rarely = Not scored

Occasionally = Not scored

How frequently do private parties in your country agree to attempt to settle their commercial disputes through mediation or conciliation?

Bonus point:
Always or nearly always = 1
Usually = 1
Frequently = Not scored
Rarely = Not scored

Rarely = Not scored

Romania total points + bonus

26.31 (out of 35)

Romania index score

75.17 (out of 100)

The ease of process index is constructed by using the simple (equal) weighted average of the scored answers for each country for the 35 questions included, in line with the Doing Business methodology. The 2 bonus questions are only scored if the country includes the practice and like all other questions, is equally weighted. Preliminary sensitivity analysis of the data to alternative sets of weights has yielded similar results. As can be seen in the example, Romania has restrictions in domestic arbitrations regarding the nationality of the arbitrator and the language of the proceedings (score of 0). It also has restrictions in appointing foreign counsel in domestic arbitration proceedings (score of 0) and limitations on what the foreign company can do when arbitrating with state entities. Romania receives no bonus points given that it only occasionally includes arbitration clauses in contracts with its state companies and given that mediation is rarely used as an ADR tool to resolve disputes. This gives Romania a total score of 26.31 for a final index score of 75.17.

Extent of judicial assistance

The Extent of judicial assistance index compares the extent of judicial assistance to the arbitration proceedings through the domestic courts. It examines assistance before, during and after the arbitration proceedings.

The Extent of judicial assistance is divided into 2 categories, each of which receives 50% of the points in this index: (i) assistance and rules for enforcement questions, which include de jure and de facto questions relating to how domestic courts assist the arbitral process and rules relating to enforcement of domestic and foreign arbitration awards; and (ii) time questions which relate to the number of days it takes to enforce an arbitral award in a local court. The 2 time questions that fall within the second category are awarded 50% of the total points in this index, given the high importance of time-efficient and effective enforcement proceedings for investors.

  • Assistance and rules for enforcement: whether domestic courts support arbitration and have articulated a “pro-arbitration” policy, as well as upholding the parties’ agreement that the arbitration tribunal can rule on its own jurisdiction, whether the law expressly provides for courts to assist the arbitration process by ordering interim relief, the production of documents and the appearance of witnesses and the grounds for setting aside or refusing to enforce arbitration awards, both for awards rendered in the country and foreign arbitration awards.
  • Time: the time it takes to enforce an arbitration award in a court of the surveyed country for awards rendered in both the surveyed country and a foreign country. This is calculated by aggregating 3 time periods: (i) the time it takes from the filing of an application for enforcement to the date of a hearing in the first instance court; (ii) from the date of the first hearing to the first instance court decision assuming no objection to enforcement has been filed; and (iii) from the final court decision granting enforcement to a writ of execution being issued attaching the assets. These responses have been quantified by aggregating the 3 time periods described above, and then dividing the 87 countries into quintiles. The quintiles have been divided into the following categories: “fast” = 1; “moderately fast” = 0.75; “average” = 0.5; “slow” = 0.25; and “very slow” = 0.

The table below presents the complete list of survey questions which comprise the ease of process index. There are a total of 23 points spread over 23 questions. 21 questions relate to assistance and enforcement of awards rendered in the host country and foreign awards, and carry a weight of 50% of the total points. Two questions relate to time of enforcement of awards rendered in the host country and foreign awards and carry a weight of 50%. There are 2 additional bonus questions.

Composition of the Extent of judicial assistance index

Survey questions comprising the Extent of judicial assistance index

How the question was scored

Example: United Kingdom

Have the courts in your country stated a “pro-arbitration policy” that is, a general policy in favor of enforcing arbitration agreements and arbitration awards. Case citation required.

“Yes” = 1 or “No” = 0

Yes = 1 (domestic)
Yes = 1 (international)

If the parties have expressly agreed that the arbitration tribunal can rule on its own jurisdiction, will that be upheld by your national courts?

“Yes” = 1 or “No” = 0

Yes = 1

In domestic/international arbitrations, if a party brings an action in a court of your country with respect to a dispute that the parties have agreed should be arbitrated, how frequently would the courts in your country decline to hear the case and refer the parties to arbitration?

In nearly all cases = 1
Usually = 0.5
Rarely = 0

In nearly all cases = 1 (domestic)
In nearly all cases = 1 (international)

Does your national law provide for domestic courts to assist the arbitration process by ordering the production of documents or the appearance of witnesses in domestic/international arbitrations?

“Yes” = 1 or “No” = 0

Yes = 1 (domestic)
Yes = 1 (international)

Are such requests generally granted in domestic/international arbitrations?

“Yes” = 1 or “No” = 0

Yes = 1 (domestic)
Yes = 1 (international)

In domestic/international arbitrations, does your national law provide for your courts to assist the arbitrators or parties by granting interim relief to prevent immediate and irreparable injury while the arbitration is pending/before the arbitration has commenced?

“Yes” = 1 or “No” = 0

Yes = 1 (domestic)
Yes = 1 (international)

If an immediate need can be shown, how often do courts grant such requests?

In nearly all cases = 1
Usually = 0.5
Rarely = 0

Usually = 0.5

May a judgment of that court enforcing the award rendered in your country be appealed to a higher court?

“No” = 1 or “Yes” = 0

No = 1

In the case of a domestic award, if Company Biii brings an action in court to set aside the award in favor of Company A, is the court authorized to review that award on the merits?

“No” = 1 or “Yes” = 0

No = 1

In the case of an international award, if Company Aiv brings an action in court to set aside the award in favor of Company C, is the court authorized to review that award on the merits?

“No” = 1 or “Yes” = 0

No = 1

What is the likelihood that your courts would enforce a domestic/international arbitration award such as the one described above, if no objection to enforcement were filed?

In nearly all cases = 1
Usually = 0.5
Rarely = 0

In nearly all cases = 1 (domestic)
In nearly all cases = 1 (international)

May a judgment of that court enforcing or denying enforcement of the foreign award be appealed to a higher court?

“No” = 1 or “Yes” = 0

Yes = 0

May a foreign arbitration award be denied recognition or enforcement on:

  1. The ground of an error of law?
  2. The ground that the award is not supported by substantial evidence; or
  3. On any additional grounds other than the ones stated in the survey?

(a) “No” = 0.33 or “Yes” = 0
(b) “No” = 0.33 or “Yes” = 0
(c) “No” = 0.33 or “Yes” = 0

  1. No = 0.33
  2. No = 0.33
  3. No = 0.33

What is the likelihood that your courts would enforce a foreign award, if no objection to agreement were filed?

In nearly all cases = 1
Usually = 0.5
Rarely = 0

In nearly all cases = 1

In arbitrations involving a state or state entity, can your courts review the arbitration awards on its merits in connection with recognition and enforcement proceedings?

“No” = 1 or “Yes” = 0

No = 1

United Kingdom points for enforcement and assistance

19.49 (out of 21)

Bonus Questions

Is the court for enforcement of arbitration awards rendered in your country, a higher level court or a specialized court?

“Yes” = +1 or No = Not scored

Yes = 1

Is the court for enforcement of foreign arbitration awards rendered outside your country, a higher level court or a specialized court?

“Yes” = +1 or No = Not scored

Yes = 1

United Kingdom total points for enforcement and assistance (including bonus)

21.49 (out of 23) – 50% of total score

Time Questions

How many days on average are necessary to enforce a domestic and international arbitration award in your country from the filing of an application for enforcement to a writ of execution attaching Company B’s assets?

Quintile of countries with min and max days for each quintile reported.
Quintile 1:Fast = 1
Quintile 2: Moderately fast = 0.75
Quintile 3: Average = 0.5
Quintile 4: Slow = 0.25
Quintile 5: Very slow = 0

Fast = 1

How many days on average are necessary to enforce a foreign arbitration award in your country from the filing of Company C’s application for enforcement to Company C obtaining a writ of executing attaching Company A’s assets?

Quintile of countries with min and max days for each quintile reported.
Quintile 1:Fast = 1
Quintile 2: Moderately fast = 0.75
Quintile 3: Average = 0.5
Quintile 4: Slow = 0.25
Quintile 5: Very slow = 0

Fast = 1

United Kingdom points for time

2 (out of 2) – 50% of total score

United Kingdom index score

96.71 (out of 100)

Preliminary sensitivity analysis of the data to alternative sets of weights has yielded similar results. As can be seen in the example, the courts of the United Kingdom are supportive of commercial arbitration, and the United Kingdom almost receives a perfect score. Domestic courts do not always grant interim relief, which is where the United Kingdom loses 0.5 of a point. In calculating the days to enforce both a domestic and foreign arbitration award, the United Kingdom falls within the first quintile, and so is awarded 1 point. Arbitration awards, whether domestic or foreign, are enforced in a higher court or specialized court, and so the United Kingdom is awarded the 2 bonus points.

The case study and assumptions

In order to ensure comparability of results, there are 2 different case studies: (i) domestic commercial arbitration and (ii) international commercial arbitration, where the seat of arbitration for both arbitrations is in that country’s largest business city.

  • The first case study relates to a domestic arbitration between 2 companies incorporated in the same country. Company A is 100% foreign-owned by a multinational corporation. Company B is owned by a domestic investor.
  • The second case study relates to an international arbitration between our local Company B and a multinational Company C, which is incorporated and operates in a foreign country.

Accordingly, IAB also assumes 3 different types of arbitral awards:

  • A domestic arbitration award given in the respective host country.
  • An international arbitration award given in the respective host country in favor of a foreign company.
  • A foreign arbitration award given in a foreign country following arbitration proceedings in that country, which is not the host country.

For procedural questions regarding the timing of arbitration proceedings, vIAB asked respondents to answer based on the assumption that arbitration proceedings take place before 3 arbitrators, using the most commonly used arbitral institution, with no court assistance.

For procedural questions regarding the timing of enforcement proceedingsvi(for awards rendered in the country, and in a foreign country), IAB asked respondents to answer based on the assumption that the award is in the amount of $100,000 and that proceedings are commenced in the competent court situated in the country’s largest business center. IAB further asked them to assume that legal counsel does not use any strategies to delay proceedings, and that court deadlines are complied with.

It should also be noted that the terms mediation and conciliation have been used interchangeably for the purposes of this data.

Limitations in the arbitrating commercial disputes indicator

  • The methodology for the Arbitrating Commercial Disputes indicators is primarily limited to analyzing objective and verifiable data, such as the legal framework and most common practices in each country. The survey used a methodology consisting mainly of yes or no questions about whether certain laws or regulations exist in the country. It contained few perception-based questions. Thus coverage of actual practice is limited, given the survey methodology and the nature of arbitration, which is private and confidential.
  • There is no such thing as a “one size fits all” arbitration regime. But by asking standardized questions in the survey, the IAB project aims to identify good practices that can help countries benchmark the strength of their arbitration regimes.
  • Many countries that have recently adopted arbitration statutes (such as Afghanistan and the Solomon Islands) have little or no experience with international arbitration. This makes it hard to compare them with countries where arbitration is a well-established mechanism for resolving commercial disputes. Countries with little or no experience are excluded from some of the analysis on court assistance and enforcement.
  • The indicators do not cover:
    • Evaluation of arbitration clauses in bilateral investment treaties, investment chapters of free trade agreements, investment treaty arbitrations, and enforcement of arbitration awards by the International Centre for Settlement of Investment Disputes (ICSID).
    • Levels of awareness and acceptance of arbitration practices by countries’ legal and business communities.
    • Levels of training of countries’ arbitration practitioners and judges.
    • Effectiveness of arbitral institutions.
    • Extent to which arbitration is preferred over other dispute resolution tools in each country.
    • Effectiveness of commercial litigation (which is already measured by the World Bank Group’s Doing Business enforcing contracts indicator).

      Due to these and other limitations, the IAB indicators are only partial measures of the topic areas they cover. They are limited in scope and explanatory power relative to actual policies and business realities. The specific contexts of each economy must be considered when interpreting the indicators and their implications for that country’s policies and investment climate.

      The following section presents all 4 IAB topics and their specific data methodology, assumptions, and indicator designs. It provides an overview of how the topic-specific data are analyzed, structured, and presented.


      i - State entities include state constituent parts such as ministries, corporate entities owned by the state. However, these questions are not intended to deal with disputes arising out of international investment treaties.

      ii - As this question is asked twice, the desirable/good practice points should be doubled.

      iii - For purposes of this question, Company A (a foreign owned company which is organized in, and operates in the surveyed country) has obtained an award in local currency equivalent in value to $100,000 against Company B, a domestic company organized and operating in the surveyed country. The award is rendered in an arbitration fully conducted in the surveyed country. Company A intends to attach Company B’s assets located in the surveyed country’s largest business city.

      iv - For purposes of this question, Company C, a company organized and operating in a foreign country, has obtained an award of $100,000 against Company A (a foreign owned company which is organized in, and operates in the surveyed country). The award was rendered in the surveyed country and Company C intends to attach Company A’s assets located in the surveyed country’s largest business city.

      v - Questions 19-21 in the Arbitrating Commercial Disputes survey.

      vi - Questions 32 and 38 in the Arbitrating Commercial Disputes survey.