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

2. 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

3. Framework for Analysis 1) Reforms of the past 2) Court performance in the present 3) Priorities for judicial reform for the future

4. 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

5. Lagging Improvements in the Judiciary The Judiciary—Not the Biggest Problem, but Slow to Improve

6. 1. Reforms of the Past

7. 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)

8. 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.

9. Early reforms emphasized law drafting over institution-building Institutions Have Lagged Lawmaking

10. 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

11. … more than efficiency … Efficiency Considerations Lag Independence

12. … and transparency came last Source: Judicial Systems in Transition Economies—Assessing the Past, Looking to the Future. Based on ABA-CEELI Judicial Reform Index

13. 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

14. …acknowledging that independence must be balanced with accountability  transparency, publication of decisions  random case assignment  citizen feedback mechanisms  disciplinary procedures for judges

15. 2. Court Performance

16. Firms’ views of judicial performance did not improve from ’99 to ‘02. Evaluations of Courts by Firms, 1999 and 2002

17. Courts are often seen as slow … The Time Delay to Collect on a Debt Through Courts

18. … unaffordable … Assessments of Courts as "Affordable"

19. … unable to enforce decisions … Assessments of Courts as "Able to Enforce Decisions"

20. … and untrustworthy … Assessments of Courts as "Fair"

21. … and transition countries lag behind most other regions. Perceptions of the Efficiency and Neutrality of the Legal System 2004

22. 3. Priorities for Judicial Reform

23. Reforms increase pressure on courts Use of Courts is Higher Where They are Most Relevant

24. Pressure on courts slows them down Where Firms Use the Courts, the Courts are Viewed as Slow

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

26. … and the most citizen dissatisfaction is in countries in the middle The Judiciary as a Problem Doing Business

27. Countries face varying priorities  early in transition: build basic demand for impartial dispute resolution through market reforms

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

29.  somewhat stronger capacity: more complex aspects of court performance

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

31.  advanced capacity: more focused programs on remaining areas of weakness

32. 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.