enforcing contracts around the world: court efficiency and access to justice in 189 economies
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Enforcing Contracts Around the World: Court Efficiency and Access to
Justice in 189 Economies
Melissa Johns Advisor, Global IndicatorsDevelopment Economics, World Bank Group
Doing Business – Women, Business and the Law – FDI Regulations Database
Enforcing Contracts Around the World: Court Efficiency and Access to Justice in 189 Economies 2
Provides objective measures of business regulations and their enforcement across 189 economies and selected cities at the subnational and regional level.
Analyzes laws and institutions that impact women entrepreneurs and employees globally.
Presents indicators on countries’ laws, regulations and practices affecting how foreign companies invest across sectors and arbitrate commercial disputes, among others.
Doing Business – What does Enforcing Contracts measure?
Enforcing Contracts Around the World: Court Efficiency and Access to Justice in 189 Economies 3
To resolve a commercial dispute in the local courts, how long will it take, how much will it cost and what steps are required?
Doing Business – Where is it easy to resolve a commercial dispute?
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1. Luxembourg
2. Korea, Rep.
3. Iceland
4. Norway
5. Germany
6. Austria
7. France
8. Finland
9. Hong Kong SAR, China
10. Russian Federation
Top 10 Performers
Enforcing Contracts Around the World: Court Efficiency and Access to Justice in 189 Economies
Doing Business – Where is it more difficult to enforce a contract through the local courts?
5
189. Timor-Leste
188. Myanmar
187. Angola
186. India
185. Bangladesh
184. Suriname
183. São Tomé and Príncipe
182. Honduras
181. Benin
180. Central African Republic
Bottom 10 Performers
Enforcing Contracts Around the World: Court Efficiency and Access to Justice in 189 Economies
Doing Business – Reforms in Malaysia
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• Implementation of a case management system
• Reorganization of the Commercial Division of the Kuala Lumpur high court and training of judges
• Expansion of an “e-court” project - Queue management system using text
messaging to notify lawyers of hearing dates- Digital planners enabling registrars to schedule
hearings on the basis of which judge is available earliest
- Court recording and transcription system provides video and audio recordings of proceedings
- Introduction of electronic filing
Reduction of backlogs by more than 50% between 2009 and 2011
Enforcing Contracts Around the World: Court Efficiency and Access to Justice in 189 Economies
Improvements in Malaysia since 2009
Doing Business – Reforms in Cote d’Ivoire
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Côte d’Ivoire introduced a commercial court and cut the time to enforce contracts by 185 days
Enforcing Contracts Around the World: Court Efficiency and Access to Justice in 189 Economies
Why does it matter?
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Studies link efficient contract enforcement with
Decreased informality
Improved access to credit
Increase in trade
• Long resolution times render litigation irrelevant• High litigation costs influence the parties’ decision on whether or not to go
to courtDabla-Norris, Gradstein and Inchauste, 2008; Safavian, Mehnaz, and Siddharth Sharma, 2007; Duval and Utoktham, 2009.
Enforcing Contracts Around the World: Court Efficiency and Access to Justice in 189 Economies
FDI Regulations Database - Arbitrating and Mediating Disputes
9Enforcing Contracts Around the World: Court Efficiency and Access to Justice in 189 Economies
The strength of the legal and institutional framework and practice related to alternative dispute resolution (with a focus on commercial arbitration, but also covering mediation and conciliation),
The ease of initiating and resolving commercial disputes involving foreign-owned companies through alternative dispute resolution, and
The extent of judicial assistance during arbitration proceedings as well as at the stage of the recognition and enforcement of foreign arbitral award.
Average length of arbitration proceedings , by region
Eastern Europe and Central Asia 36 weeks
East Asia and the Pacific 41 weeks
Latin America and the Caribbean 41 weeks
High-Income OECD 48 weeks
Middle East and North Africa 58 weeks
South Asia 63 weeks
Sub Saharan Africa 65 weeks
FDI Regulations Database 2012
Recognition/enforcement proceedings for foreign arbitral awards can also vary, note Latin America and the Caribbean (average 90 weeks), Sub-Saharan Africa (average 65 weeks), and East Asia and the Pacific (average 39 weeks).
The project measures:
Women, Business and the Law – Small claims courts and access to justice
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In a 11 economies, women’s testimony carries less
evidentiary weight than a man’s. In Democratic Rep. of Congo, married women need
the permission of their husband to initiate a suit.
Enforcing Contracts Around the World: Court Efficiency and Access to Justice in 189 Economies
Small claims courts are of extreme importance for
women, since studies have shown that businesses owned by women tend to be smaller than those owned by men.
Doing Business – Upcoming research on courts
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o Quality of the judicial infrastructure• Publication of judgments, availability of voluntary mediation
o Mechanics of the process • Case management, e-filing, automation of court processes
o Mechanisms available to workers and firms to resolve labor disputes
• Availability of specialized jurisdictions dealing exclusively with labor issues
• Types of sanctions that could be imposed on the employer for wrongful dismissal (compensation, reassignment, etc.)
• Length of the dispute
Enforcing Contracts Around the World: Court Efficiency and Access to Justice in 189 Economies
Enforcing Contracts indicators
Measures of labor courts
Thank you!Please visit our websites:www.doingbusiness.orgwww.iab.worldbank.orgwww.wbl.worldbank.org
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