Alternative Dispute Resolution

Commercial litigation is often an unavoidable consequence of growth for new businesses, and expensive, time-consuming court proceedings are an increasing burden to small and medium enterprises (SMEs) in Albania, Bosnia, FYR Macedonia and Serbia. According to the World Banks’ Doing Business Report, companies in the region who seek help from the judicial system to enforce a contract wait an average of 500 days for a court decision. In addition, the high cost of litigation can tie up company assets that might otherwise be directed to new business development and operational upgrades.

To help SMEs cut through judicial red tape and unlock these assets, Private Enterprise Partnership for Southeast Europe (PEP-SE) is building on successful ADR pilots previously launched in Albania, Bosnia, FYR Macedonia and Serbia. These programs helped to draft ADR legislation, train participants and raise awareness on the benefits of using ADR and mediation. In one Bosnian court alone, the ADR pilot project helped to resolve around 20 commercial disputes within one month, releasing approximately $1 million in assets. PEP-SE is developing ten additional self-sustaining ADR centers in Albania, Bosnia-Herzegovina, FYR Macedonia, and Serbia and Montenegro.