DOING BUSINESS 2009 - JOHN J. HADDAD, Ph.D.
DOING BUSINESS 2009 - JOHN J. HADDAD, Ph.D.
DOING BUSINESS 2009 - JOHN J. HADDAD, Ph.D.
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400Source: Doing Business database.52 Doing Business <strong>2009</strong>FIGURE 10.3Few reforms in the Middle East & North Africa and in South AsiaNumber of reforms easing contract enforcementby Doing Business report yearEastern Europe& Central Asia(28 economies)DB2005 DB2006 DB2007 DB2008 DB<strong>2009</strong>26Steps to file claim, obtain and enforce judgmentNote: See Data notes for details.FIGURE 10.4Top 5 reform features in enforcingcontractsReforms including feature since DB2005 (%)Increased procedural efficiency43%Sub-SaharanAfrica(46 economies)1518%Established or expanded commercial courtsOECDhigh income(24 economies)Latin America& Caribbean(32 economies)East Asia& Pacific(24 economies)South Asia(8 economies)Middle East &North Africa(19 economies)11Note: A reform is counted as 1 reform per reforming economy per year.Source: Doing Business database.existing courts. Some African countrieshave a longer track record with specializedcourts or divisions—includingKenya, Madagascar, Tanzania, Ugandaand Zambia.In 7 African countries that introducedcommercial courts or sectionsin the past 5 years—Burkina Faso, theDemocratic Republic of Congo, Ghana,Mauritania, Mozambique, Nigeria andRwanda—the average time to resolve acommercial dispute dropped by about19%, from 604 days to 492 (figure 10.5).Because judges must be hired andtrained, rules adjusted and funding ensured,achieving such reductions in timeusually takes years. In Ghana, for example,a commercial division began operatingin its high court in March 2005.Doing Business 2008 records a drop intime from 552 days to 487—more than2 years later.Specialized commercial courts areoften criticized because they deal onlywith the financially most important cases.Those in Tanzania, for example, acceptonly cases with a value 66 times incomeper capita. In Zambia it is 15 times incomeper capita. Minimum thresholds can bejustified as a way to avoid overloading711FIGURE 10.1Top 10 reformers in enforcing contractsAverage improvementnewly 2007 established specialized courts. Buta balance must 3% be struck 6% between accessto justice and a reasonable caseload forthe2008new courts. A pragmatic approach isto lower minimum thresholds as courtsare gradually able to accept more cases.This is better than having courts inundatedwith cases from the start.Moving to oral proceedingsin Latin Procedures America TimeCountries in Latin America have spedcriminal cases by using oral proceedingsrather than an exchange of writtendocuments. Argentina and Chile startedthis trend in the 1990s. Colombia, Guatemala,Honduras and Mexico are nowworking 1. Mozambique on similar reforms. And Colombia2. plans Macedonia, to extend former oral Yugoslav proceedings Republic of tocommercial 3. Bulgariacases over the next 4 years.4. RomaniaIn El Salvador the legislature is close5. Armeniato adopting a bill to make court cases,6. Chinaincluding 7. Bhutan commercial cases, oral. Noweverything 8. Belgium takes place in writing between9. Azerbaijan the parties, with little intervention10. from Portugal the judge. In the future therewill be a preliminary hearing duringwhich the judge will first try to reconcileSource: Doing Business database.the parties. Failing that, the judge willdetermine the facts and evidence to bepresented in the case. At a second andfinal hearing the parties, witnesses andFIGURE 10.5Specialized commercial courts in Africa help to reduce delays in enforcing contractsTime to enforce a contract (days)Mozambique1,0002004800600400132008Source: Doing Business database.NigeriaMauritaniaMade enforcement of judgment cheaperor more efficientNote: A reform may include several reform features.Source: Doing Business database.Ghana9%Streamlined appeals8%12%Simplified rules for small claimsRwandaDemocraticRepublicof CongoBurkinaFasoFIGURE 10.2Rankings oare based oDays to resolcommercial sbefore courtsSteps to file cNote: See Data noFIGURE 10.3(c) The International Few reforms Bank in Reconstruction the Middle East and Development & North Africa / The and World in South Bank AsiaFIGURE 10.4Top 5 reform