Convention on the Settlement of Investment Disputes between Countries and Nationals of Other Countries: Purpose of the Convention The Convention on the Settlement of Investment Disputes was initiated by the International Bank for Reconstruction and Development. The draft convention was opened for signature in Washington in March 1965, and came into force on March 1966 10/4 after several regional discussions by an advisory committee composed of members of the bank. Its main purpose is to facilitate the mediation and arbitration of investment disputes between nationals of States parties to the Convention and nationals of other States parties, so as to exclude political interference and diplomatic interference, thus improving the investment climate and promoting the continuous inflow of international private capital into developing countries.