Introduction and development of alternative dispute resolution system in Armenia will increase investors’ confidence in the country

YEREVAN, July 12. /ARKA/. The introduction and development of alternative dispute resolution (ADR) system may increase investors’ confidence in Armenia and spur the amount of investments in the economy, Deputy Minister of Justice Yeghishe Kirakosyan said today at a conference organized to look into Armenian judicial system’s reform. 

According to him, the introduction and development of alternative dispute resolution will take the brunt off the courts that will in turn significantly improve the quality of cases and cut the time needed for their hearing and also the costs of the parties.

Kirakosyan said introduction of ADR is an important component of judicial reforms in Armenia.

"We in Armenia have arbitration courts, but it is necessary to develop and improve them. We do not have the institution of intermediaries, which should be introduced," he said.

The head of the Yerevan office of the U.S. Agency for International Development (USAID) Karen R. Hilliard noted that USAID will assist the Ministry of Justice in the introduction and development of ADR system.

Hilliard noted that according to the World Bank, poor execution of contracts is one of the main obstacles to doing business in Armenia, and that hearing of a case in Armenian courts lasts for months because of their workload.

"We hope that this new way of economic problems resolution will increase the confidence of investors and bring fresh investments in Armenia and new create jobs,” she added.

The conference was organized by the USAID-funded Enterprise Development and Market Competitiveness (EDMC) Project and the Ministry of Justice of Armenia with the assistance of the US Embassy in Armenia. The conference was attended by U.S. Federal Judges Ricardo Martinez and Robert Lasnik. 

On July 11, the USAID-funded EDMC Project and the Ministry of Justice of Armenia signed a letter of intent to implement business-enabling reforms in Armenia and develop the country’s alternative dispute resolution (ADR) system. The ceremony was attended by U.S. Ambassador to Armenia John Heffern and Minister of Justice Hrayr Tovmasyan. 

From July 2013 to December 2014, the parties will jointly implement a range of activities, including a thorough study of the current ADR system. Through the EDMC project, USAID will support the Ministry of Justice in drafting of primary and secondary legislation and conducting public hearings and roundtable discussions with stakeholders. The activities will not only seek to improve the system but also to raise public awareness of the reforms and to build the confidence of the business community in the ADR system. -0-