The objective of IFC Advisory Service’s Alternative Dispute Resolution program is to institutionalize court-referred mediation for fast and cost-effective commercial dispute resolution, offering greater access to justice for entrepreneurs. The program helps build more efficient judicial systems and introduces new best practices in alternative dispute resolution by establishing pilot commercial mediation centers and by transferring mediation skills to practitioners.
In most of the region's countries, complex and costly contract enforcement processes remain a strong disincentive for investors. Overall, entrepreneurs have limited confidence in the judicial system to resolve their disputes. Lengthy court procedures often cost entrepreneurs more than the amounts they are disputing, considering the financial and human resources involved and the opportunity costs of trapped assets in outstanding disputes over many years.
The Alternative Dispute Resolution program is active in Pakistan. Efforts are underway to explore opportunities for Alternative Dispute Resolution projects in several countries across the region.
What Does the Program Offer?
- Supports the launch of pilot mediation centers
- Reviews legislation and drafts by-laws for enforcement of court-referred mediation
- Enhances case management, referral processes, and enforcement processes
- Trains, certifies, and registers independent mediators
- Raises awareness about Alternative Dispute Resolution and mediation among practitioners and end-users
Expected Outcomes and Impact
In the Pakistan pilot, we expect to have an Alternative Dispute Resolution-enabling legislative framework enacted and to develop a professional cadre of practitioners with the assistance of internationally recognized organizations. The creation of pilot mediation centers will help develop an increasing flow of commercial disputes to be settled through the program.
We also expect to reduce the time and cost of contract enforcement and the backlog of commercial court cases. Freeing up assets trapped in commercial disputes should create increased investor confidence and business activity.
Key Achievements
From IFC Advisory Service's inception to the end of fiscal year 2007, the program has been successful at:
- Establishing a pilot mediation center in Karachi, Pakistan, which commenced operations in February 2007. To the end of June 2007, 20 cases were referred to the pilot mediation center, of which four were successfully settled, resulting in the release of over $1.5 million
- Reviewing 3 laws, by-laws, and court rules
- Training and sensitizing 123 judges, mediators and lawyers
The project also received in September 2006 an Award of Excellence for international achievements in the prestigious biannual mediation awards series organized by the U.K.-based Center for Effective Dispute Resolution.
Read more about the award...
Eligible Partners & Clients
Our primary clients are government ministries in charge of justice and judicial reform, the courts, and private sector representatives. We sometimes partner with other ministries and agencies responsible for industry, especially small and medium enterprise development, as well as industry associations and chambers interested in and supportive of commercial alternative dispute resolution practices.
For additional information contact:
Navin Merchant
Program Manager
E-mail:
nmerchant@ifc.org
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