Effective Nationality In International Investment Arbitration

Effective nationality doctrine is confined to situations where an individual possesses lawfully two or more nationalities and where it is necessary to choose which of them is effective for given purposes.¹ In international law, the issue of "effective nationality" was famously considered by the International Court of Justice in the Nottebohm case. The Court considered whether Liechtenstein could espouse the case of Mr. Nottebohm, a national of both Liechtenstein and Germany, against Guatemala. Mr. Nottebohm had a long-standing and close connection with Guatemala, where he had lived for most of the previous thirty years, but only a minor connection with Liechtenstein. Accordingly, the Court held that Mr. Nottebohm's case could not be espoused by Liechtenstein because he did not have sufficient connection with that country. In this case, with emphasizing on effective nationality, it was decided that the existence of a genuine link between a person and a state is