The International Center for Settlement of Investment Disputes, headquartered in DC, is an absolute international legal organization. The purpose of its establishment is to increase the confidence of developed country investors on investing in developing countries and to resolve investment disputes through arbitration and mediation. It requires both parties involved in dispute to be members of the Convention, and the subject of the dispute to be a nation or national institution or agency. The nature of the dispute must be a legal dispute directly caused by the investment.

ICSID has its own arbitration rules exclusively used in arbitration. Arbitrators and mediators must be selected from its roster, and whose award shall be final and both parties in dispute must accept it.

ICSID consists of the Council, which is the supreme authority composed of a representative from each member state, and holds one meeting each year with the President of the World Bank as the president, and the Secretariat directly under the management of the Secretary-General to handle daily affairs. ICSID members include all members of the World Bank and other invited countries.

The purpose and mission of ICSID is to formulate rules for mediation or arbitration of investment disputes, accept requests for mediation or arbitration investment disputes, handle investment disputes, etc., and facilitate the settlement of disputes between member states and foreign investors. Mutual trust between the host and the host country, thereby encouraging international private capital to flow to developing countries. ICSID usually address disputes by either mediation or arbitration.