International Arbitration As A Spontaneous Legal Order

Methodological Individualism (or better, praxeology) is essential to understand social phenomena. Praxeology should be applied not only to the study of the social process but also to the study of the different aspects of this process, such as Economics, Law, and Institutions. Hence, social sciences, including the Law (and International Arbitration within it) should therefore be studied from Methodological Individualism. There have been very few attempts to draw up a legal theory of arbitration. The lack of a comprehensive theory capable of explaining Arbitration’s foundation may have undesired results, both with regard to its (mal-) functioning and its future survival. We argue in this paper that praxeology, as the science that studies the logic of human action, and the theory of the spontaneous evolution of institutions, is the only methodology that can explain International Arbitration integrally. International arbitration is a means by which international disputes can be definitely resolved, pursuant to the parties’ agreement, by impartial, non-public decision-makers, appointed by or for the parties, applying neutral judicial procedures that provide the parties an opportunity to be heard. Today it is the main mechanism for solving international disputes involving States, individuals, and/or corporations. International arbitration is also a social-juridical institution of spontaneous evolution.