They may wish to exercise more control by specifying the rules which govern the dispute. They may also wish to avoid the current problem of the lack of internationally recognized standards on the enforceability of foreign judgments. There are essentially two kinds of arbitration, ad hoc or institutional. An institutional arbitration is one that is entrusted to one of the major arbitration institutions to handle, while an ad hoc one is conducted independently without such an organization, according to the rules specified by the parties and their attorneys. State vs. Private Parties Arbitrations may also be differentiated by those that involve states as a party, and those which do not.
Special institutions are available for arbitrations in which states are a party.
There are a number of arbitral mechanisms which address arbitrations in a particular industry or concerning a particular topic. There has been a tremendous increase in arbitration options in the last 50 years. Previously, there were a few countries with well-developed arbitration practices and sympathetic national laws. The major arbitration organizations were the ICC and the LCIA . Interference with arbitration by the courts was a well-founded fear in many countries.