Contract Enforcement and Judicial Systems in

Central and Eastern Europe

Warsaw, PolandJune 20-22, 2005

www.worldbank.org/judicialworkshopwarsaw

Judicial Systems in Transition Economies

Assessing the Past, Looking to the Future

Contract Enforcement and Judicial Systems inCentral and Eastern Europe

Warsaw, PolandJune 21, 2005

Framework for Analysis

1) Reforms of the past

2) Court performance in the present

3) Priorities for judicial reform for the future

A Broad Array of Perspectives and Data

Citizens

Firms

Lawyers

World Values Survey

New Democracies and New Russia Barometer

EBRD-World Bank Business Environment and Enterprise Performance Surveys

World Economic Forum’s Global Competitiveness Reports

ABA-CEELI Judicial Reform Index

EBRD Legal Indicator Survey

World Bank’s Doing Business database

Lagging Improvements in the Judiciary

The Judiciary—Not the Biggest Problem, but Slow to Improve

1. Reforms of the Past

Socialist judicial institutions:not suited to the needs of a market

economy

subordinate to the executive

limited role or capacity in commercial matters

inadequate resources (buildings, IT, salaries, etc)

The challenge: Judicial systems to …

shape the implementation of new rules of a market economy

resolve complex commercial disputes effectively

protect economic and social rights

hold governments accountable

These systems need independence, capacity, and accountability.

Early reforms emphasized law drafting over institution-building

Institutions Have Lagged Lawmaking

Early reforms also emphasized judicial independence…

new constitutions

specialized constitutional courts

rules on the appointment, tenure, removal, and disciplinary procedures for judges

self-governing bodies for the judiciary

judge-controlled training institutes

… more than efficiency …

Efficiency Considerations Lag Independence

… and transparency came last

-100 -50 0 50 100

Maintenance of Trial Records

Publication of Judicial Decisions

Computers and Office Equipment

Judicial Decisions and Improper Influence

Judicial Associations

System of Appellate Review

Guaranteed Tenure

Judicial Immunity for Official Actions

negative neutral positive

Source: Judicial Systems in Transition Economies—Assessing the Past, Looking to the Future. Based on ABA-CEELI Judicial Reform Index

Recent reforms focus more on efficiency and effectiveness

IT and case management

refurbishing of courts

alternative dispute resolution (ADR)

court clerks

legal professions (bar, bailiffs, notaries, etc)

legal education

…acknowledging that independence must be balanced

with accountability

transparency, publication of decisions

random case assignment

citizen feedback mechanisms

disciplinary procedures for judges

2. Court Performance

Firms’ views of judicial performance did not improve from ’99 to ‘02.

Evaluations of Courts by Firms, 1999 and 2002

Courts are often seen as slow …

The Time Delay to Collect on a Debt Through Courts

… unaffordable …

Assessments of Courts as "Affordable"

… unable to enforce decisions …

Assessments of Courts as "Able to Enforce Decisions"

… and untrustworthy …

Assessments of Courts as "Fair"

… and transition countries lag behind most other regions.

Perceptions of the Efficiency and Neutrality of the Legal System 2004

3. Priorities for Judicial Reform

Reforms increase pressure on courts

Use of Courts is Higher Where They are Most Relevant

Pressure on courts slows them down

Where Firms Use the Courts, the Courts are Viewed as Slow

Countries are at different stages … Capacity and Demand for Judicial Services (and Reforms)

… and the most citizen dissatisfaction is in countries in the middle

The Judiciary as a Problem Doing Business

Countries face varying priorities

early in transition: build basic demand for impartial dispute resolution through market reforms

further in transition but weak capacity: continued structural reforms and capacity building

somewhat stronger capacity: more complex aspects of court performance

full market economy: comprehensive judicial reform strategies addressing all aspects of reform

advanced capacity: more focused programs on remaining areas of weakness

The bottom line …

There has been less progress in judicial reform than in many other areas of transition.

Improving the capacity of judicial systems is now a critical priority in most transition countries.

This workshop is designed to share experiences to date and ideas on how to move forward.