IDB Experience in Justice Reform

February 12, 2003

Some Background on IDB Support for Justice Sector Reform

• IDB support for modernization of justice systems initiated with region-wide conference in 1993 entitled Justice in Latin America and the Caribbean in the 1990s: Challenges and Opportunities. The conference galvanized interest in justice system reform drawing upon IDB support.

• Document approved by the IDB’s Board of Directors in 1994 authorizing the Eighth General Increase in Resources identified modernization of the state as a key area of activity and endorsed assistance to countries’ efforts to promote strengthening and modernization of the judicial system.

Background….

1996 IDB Board approved the document Frame of Reference for Bank Action in Programs for Modernization of the State and Strengthening Civil Society. It recommends Bank involvement in justice sector reform encompassing civil and criminal law and entailing actions in diverse areas.

• law reform and promotion of civil and human rights• justice administration strengthening• legal aid and civic education; access to justice• alternative methods of conflict resolution• development of human resources in justice sector• infrastructure• promotion of citizen security

Background…

The document provided general guidelines but left room for the Bank to respond to the needs and demands of countries in a range of justice reform areas.

Support in the sector based on broad mandate from IDB charter of supporting social and economic development but also more specified mandates related to values (democracy, human rights, etc.) thought to be associated with development of countries in the region.

Background…New Modernization of the State Strategy under consideration

of Board of Directors explicitly identifies as priority areas of action for the IDB:

• the consolidation of the democratic system• the establishment of the rule of law• enhancing institutions at the foundation of a dynamic and

competitive market economy, • strengthening public management and policy-making capabilities

The needs and demands of the region’s countries are far-reaching in the justice sector due to needs to enhance investment climate and the growth of the market economy,

reduce pervasive social inequalities; fight problems of growing crime and violence and persistent corruption, strengthen protection of human/civil rights, and establish a democratic rule of law.

Violent crime and crime in general is a serious and growing problem in the region.

Homicides/100,000 Persons, 1970-1999

United Nations. Fifth, Sixth and Seventh United Nations Survey of Crime Trends and Operations of Criminal Justice Survey.

0

5

10

15

20

25

OECD LAC Rest of World

1970-74

1975-79

1980-84

1985-89

1990-94

1995-99

But, clearly the severity of the problem of violent crime variesgreatly across the region

Intentional Homicides in the 1970s and 1990s

United Nations. United Nations Survey of Crime Trends and Operations of Criminal Justice Survey. 5th, 6th and 7thSurveys.

0 20 40 60 80 100 120 140

Chile

Uruguay

Trinidad &Tobago

Ecuador

Argentina

Barbados

Costa Rica

Brazil

Bahamas

Mexico

Venezuela

Nicaragua

Jamaica

Colombia

El Salvador

Guatemala

1999-2000

1990-94

1970s

Percentage of Men and Women Victimized by Violent Crimes Over Five Years in Urban Areas, 1989-96

0 2 4 6 8 10 12 14 16

Latin America

Africa

New World

Central andEastern Europe

Western Europe

Asia

violence (males)

violence (females)

Source: United Nations. Global Report on Crime and Justice. 1999.

Percentage of the Public Victimized by Any Crime in Urban Areas, by Region, 1989-96

0 10 20 30 40 50 60 70 80

Latin America

Africa

New World

Central and EasternEurope

Western Europe

Asia

Source: United Nations. Global Report on Crime and Justice. 1999.

Source: Latinobarómetro, 1996 and 2001

Crime in general appears to be increasing in majority of countries in recent years

(% of Respondents Claiming Themselves or Family Member Victimized by Crime in Previous Year)

0

10

20

30

40

50

60

70

80

MEX ECU VEN PER BOL ARG GTM HND NIC PRY SLV CHL PAN BRA COL CRI URY Spain LAC

1996

2001

Corruption is also a pervasive problem whose solution depends at least partly upon reform in the judicial sector

Absence of Corruption

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

HIC CEE EA MENA LAC SSA CIS SA

Source: Kaufmann, Kraay, and Zoido-Lobatón, 2001.

Property rights, impartial contract enforcement, respect for laws, fair treatment by the state not well-established

Rule of Law

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

HIC MENA CEE EA LAC CIS SSA SA

Source: Kaufmann, Kraay, and Zoido-Lobatón, 2001.

The problems of corruption and deficient rule of law are of different magnitudes across the region; judicial reform needs and strategies vary

Absence of Corruption

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Source: Kaufmann, Kraay, and Zoido-Lobatón, 2001.

Rule of Law

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

Source: Kaufmann, Kraay, and Zoido-Lobatón, 2001.

In most countries citizens have little confidence in the judicial system

(% who express they have “a lot” or “some” confidence in judiciary)

Source: Latinobarómetro, 2001; Eurobarometer 21, April 1985.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Judicial Independence The judiciary is independent and not subject to interference by the govt. or parties

to dispute (1=strongly disagree; 7=strongly agree)

0

1

2

3

4

5

6

7

Source: World Economic Forum, 2001

0

1

2

3

4

5

6

7

CHL BRA COL ARG SLV MEX VEN PER ECU BOL LAC HIC EA CEE CIS WorldAve.

Judicial CorruptionThe judiciary rarely accepts irregular payments (1=strongly disagree;

7=strongly agree)

Source: World Economic Forum, 2001Source: World Economic Forum, 2000. World Economic Forum, 2001

0

1

2

3

4

5

6

7

URY CHL CRI ARG BRA TTO JAM PAN MEX SLV COL DOM PER VEN BOL GTM HND ECU NIC PRY LAC HIC WorldAve.

Property RightsProperty Rights are clearly delineated and protected by law

(1=strongly disagree; 7=strongly agree)

Source: World Economic Forum, 2001. World Economic Forum, 2001

In some countries case backlogs and delays are an important problem (Clearance Rate (Resolved Cases/Filed Cases) Ave. 1995-1996)

0 20 40 60 80 100 120

France

Peru

Germany

Singapore

Chile

Brazil (Brasilia)

Panama

Brazil (Sao Paulo)

Hungary

Colombia

Ukraine

Ecuador

Source: Maria Dakolias. Court Performance Around the World. 1999

Congestion Rate (Caseload/Resolved per year)

0 200 400 600 800 1000 1200

Ecuador

Panama

Brazil (Brasilia)

Chile

Brazil (Sao Paulo)

Hungary

Ukraine

Peru

Germany

France

Singapore

Colombia

Source: Maria Dakolias. Court Performance Around the World. 1999

IDB Supported Justice Investments by Approval Year, 1994-2000

0

20

40

60

80

100

120

140

160

180

200

1994 1995 1996 1997 1998 1999 2000

Mill

ions

of U

S$

Justice System, Violence Prevention and Citizen Safety Loans and TCs

(Until June 2001)

Total Project Amount

(Millions US$)

Total IDB Amount

(Millions US$)

Number of Projects

Loans 418 274 18

TCs 43 36 65

Total 461 310 83

Substantive Areas Addressed

Civil Law Reform (32/83 projects)Constitutional Law; Real Property Law; Commercial Law; Labor Law; Consumer

Protection Law; Administrative Law and Review

Access to Justice (32/83 projects)Public defense and legal aid offices; access to lawyers; justices of the peace, first-

level trial courts; small claims courts; civic education about justice institutions and processes and civil rights; ADR

Criminal Justice Reform (19/83 projects)Training in implementation of new criminal procedure codes; strengthening public

prosecutor’s and attorney general’s offices; drafting crime-prevention policies; rehabilitation programs; information systems; juvenile justice reform (juvenile courts; rehabilitation, job training); violence prevention programs

IDB Investment by Substantive Area

39.1

21.5

4.5

7.3

21.3

6.4

ACCESSTO JUSTICE

GENERAL ADMINOF CIVIL JUSTICE

GENERALCRIMINAL ANDHUMAN RIGHTS

ADR

Juvenile Justice

ViolencePrevention

Other

29.5

7.7

12.620.2

18.7

3.08.4

GeneralManagementPolicyFormulationTraining

Infrastructure

InformationSystemsSupport NGOs

Other

IDB Supported Investment for Institutional Strengthening

Level of Investment by Type of Reform Process (% of Total Funds)

5.0

2.11.3

91.6

InstitutionalStrengthening

Law Reform

ConsensusBuilding, ProjectPreparationResearch,Seminars,Conferences

IDB support extends to most countries of region focusing in diverse areas (US$ Millions)

0 10 20 30 40 50 60 70 80 90

Argentina

Bolivia

Brazil

Chile

Colombia

Costa Rica

Dominican Rep.

Ecuador

El Salvador

Guatemala

Guyana

Honduras

Mexico

Nicaragua

Panama

Paraguay

Peru

Trinidad and Tobago

Uruguay

Venezuela

Regional

Access to Justice

General Criminal and Human Rights

General Admin. Of Civil Justice