Resolving Anarchy: Arbitration in Emerging African Economies

Arbitration is used to resolve business disputes in the US and UK financial markets; particularly stock exchange disputes. Indeed, the World Federation of Stock Exchanges requires members to have a functioning dispute resolution system and Stock Exchanges are heavily regulated in an attempt to bolster investor confidence. They are also frequently understood as national institutions, influenced by economic, political and legal traditions. As the global economy contracts and expands, emerging exchanges are faced with increasing competition in obtaining global capital financing. They need this capital investment to grow. Establishing credible dispute resolution processes, can assist exchanges in this endeavour. But what should these systems look like?

The focus of my paper will be on Africa, which has over a dozen stock exchanges in various stages of development; most are located in countries without the banking and legal infrastructure needed to support a viable stock exchange. My paper considers the implications of global financial developments for emerging African economies. These developments include the increased use of Anglo-American style dispute resolution methods, the growing burden on public companies caused by the global adoption of ill-defined concepts of corporate social responsibility, as well as the absence of African influence on any of these processes.