Why ADR?

CEDR works with jurisdictions whose civil justice systems are sufficiently established as to recognise the rule of law in relation to commercial disputes but where access to justice is nevertheless burdened by obstacles. These can include backlogs in the courts, or excessive costs or delays in resolving commercial disputes.

For such countries, there are three distinct but often overlapping reasons as to why their economy and citizens might benefit from the development of ADR within their civil justice system:

• Particularly for economically lesser-developed nations, difficulties faced by small and medium-sized enterprises in resolving commercial disputes may be acting as a disincentive to trade, as well as tying up assets in disputes (e.g. uncollected debts).  ADR can help unblock systems by providing faster and more cost-effective resolution of such disputes, thus strengthening the climate for future trade and investment.

• Developing countries seeking to attract inward investment may perceive a need to introduce internationally accepted standards and practices of private dispute resolution as a means of reassuring investors.

• Countries seeking to align themselves with certain international institutions (e.g. European Union, UNCITRAL) may need to incorporate certain ADR elements as part of the process of conforming their civil justice systems to institutional norms.

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