Why reform is needed
Over the last 20 years of EBRD's work in legal transition, the legal framework for doing business in our regions has improved substantially. Overall, judiciaries have shown imporvements in indepenendence and understanding of market economy, while new legal mchanisms in such areas as dispute resolution have emerged as well as best practices which are being applied in EBRD's new countries of operations. However, the enforcement of contracts and commercial laws is often problematic, which deters investors from participating in countries' markets for fear that their legal rights will not be protected.
The LTP's role
The Legal Transition Programme (LTP) has recently devoted special attention to strengthening the enforcement of contracts and judicial capacity. The LTP runs wide-ranging commercial law judicial training projects in EBRD countries of operations. These projects typically aim to train pools of local judges who then work with international experts to deliver fundamental training to all judges hearing commercial matters in the given country. In addition, the LTT also seeks to promote the use of alternative dispute resolution (ADR), through advising governments on the upgrading of arbitration laws in accordance with the model law of the UN Commission on International Trade Law (UNCITRAL); the training of arbitrators; establishing court-annexed mediation facilities and mediation centres; and the training of mediators. Furthermore, the LTT is also involved in reforms to court structure and jurisdiction. This typically entails advising governments or agencies on how specialised commercial courts or chambers can improve the handling of commercial matters in a given country.