Publication Type

Journal Article

Version

publishedVersion

Publication Date

7-2025

Abstract

This article examines the intricate dynamics of community representation and stakeholder influence in the realm of international investment law. More specifically, it considers the most effective method by which to operationalise the concept of the ‘social licence to operate’ when attempting to resolve investor-state disputes. By utilising disputes relating to China’s Belt and Road Initiative as a case study, it is shown that the social impact of foreign investment projects is often a catalyst for arbitration claims. Community interests are insufficiently represented at the stage of procurement or admission of investment, which has led to violent clashes between investors and local residents and activists. The role of the ‘social licence to operate’ in mitigating this phenomenon is explored, as well as the possibility of crystallising the ‘social licence’ conceptwithin an enforceable legal obligation. It is argued that the inherently context-dependent character of the concept makes it challenging to craft a treaty provision that will capture the core purpose of stakeholder engagement. As an alternative, it is proposed that there is a strong synergy between mediation and the ‘social licence to operate’, and that a stakeholder-focused mediation process may be an effective method of dispute prevention.

Keywords

Mediation, investor-state disputes, social license to operate

Discipline

Dispute Resolution and Arbitration | International Law

Research Areas

Dispute Resolution

Publication

Dispute Resolution Review

Volume

4

Issue

2

First Page

1

Last Page

24

ISSN

2653-6951

Identifier

https://doi.org/10.53300/001c.140830

Publisher

Bond University

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.53300/001c.140830

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