El costo del Arbitraje de Inversión como mecanismo default de mitigación de riesgos políticos. Hacia un análisis económico de los seguros de riesgo politico en las inversiones extranjeras. - Iurgium [previously Spain Arbitration Review] View El costo del Arbitraje de Inversión como mecanismo default de mitigación de riesgos políticos. Hacia un análisis económico de los seguros de riesgo politico en las inversiones extranjeras. by - Iurgium [previously Spain Arbitration Review] El costo del Arbitraje de Inversión como mecanismo default de mitigación de riesgos políticos. Hacia un análisis económico de los seguros de riesgo politico en las inversiones extranjeras. 2022 45

The uncertainty of the future of investment arbitration is accentuated by a global context in which political risks are ever more diffuse, constraining the the investment protection regime with new and unforeseen scenarios. Hence, investment arbitration —as the default mechanism to mitigate political risk— has become very costly. To reconceptualize the purpose and aptness of investment arbitration, I propose an economic analysis of the cheapest cost avoider in order to put forth the idea of political risk insurance as the most efficient mechanism to distribute certain risks in foreign investment. With a systemic implementation of political risk insurance, investment arbitration will cease to be a default mechanism for the mitigation of all types of political risk and redeem its essence as a Public International Law adjudication mechanism that guarantees the accountability of states in the international arena.

Iurgium [previously Spain Arbitration Review]