BCLP International Arbitration Survey 2024

Does arbitration have the tools to tackle the elephant in the room?

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This year, our Annual Arbitration Survey focuses on the issue of corruption and the challenges it poses for international arbitration.

Corruption is a complex social, political and economic phenomenon that affects all countries.  The United Nations and World Economic Forum have estimated the global cost of corruption at 5% of the world’s Gross Domestic Product.  In spite of international efforts to combat corruption, it remains one of the biggest challenges facing international commerce.  As a result, the treatment of corruption allegations in commercial and investment arbitration is of particular significance. 

Recent cases, including the widely reported decision in The Federal Republic of Nigeria v Process & Industrial Developments, have highlighted the challenges faced by arbitrators when dealing with corruption allegations and the impact that this can have on the reputation of arbitration as a method of dispute resolution.  

This year’s survey canvases views on some of those risks and asks whether change is needed to avoid arbitration becoming a safe harbour for corruption.

Key findings include:

• 64% of respondents indicated a high or moderately high level of concern about the risk of abuse of the arbitral process in cases involving allegations of corruption.
• 82% of respondents indicated high or moderately high level of confidence in the robustness of the arbitration process.
• 58% of respondents were concerned that the confidential nature of arbitration increases the risk of abuse of the arbitration process.
• 67% of respondents were in favour of increased transparency in commercial arbitrations involving States or state-owned entities.
• 61% of respondents thought that arbitrators should be more interventionist when faced with an under-represented or poorly represented party. 
• 72% of respondents thought the arbitration process would benefit from additional best practice guidelines for the conduct of arbitrations involving allegations of corruption.