Contract Enforcement and Judicial Systems in Central and Eastern Europe Warsaw, Poland June 20-22, 2005 www.worldbank.org/judicialworkshopwarsaw.

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Presentation transcript:

Contract Enforcement and Judicial Systems in Central and Eastern Europe Warsaw, Poland June 20-22,

Judicial Systems in Transition Economies Assessing the Past, Looking to the Future Contract Enforcement and Judicial Systems in Central and Eastern Europe Warsaw, Poland June 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 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.