Q. Consider the following statements regarding International Centre for Settlement of Investment Disputes (ICSID):
1. It was set up in 1966 is an investment dispute settlement body whose decisions are binding on the parties.
2. India is not a member of ICSID.
Which of the statements given above is/are correct? 
Answer: C
Notes:
The International Centre for Settlement of Investment Disputes (ICSID), set up in 1966 is an investment dispute settlement body whose decisions are binding on the parties.
- It was established under the 1966 Convention on the Settlement of Investment Disputes between States and Nationals of Other States.
- Though recourse to the centre is voluntary, but once the parties have agreed to arbitration, they cannot withdraw their consent unilaterally.
- It settles the investment disputes arising between the investing foreign companies and the host countries where the investments have been done.
- India is not its member (that is why the Enron issue was out of its preview).
- It is believed that being signatory to it encourages the foreign investment flows into an economy, but risks independent sovereign decisions, too.
Source: Sriram’s IAS
