Commercial Court and Enforcement Assessment Tool
An effective and efficient justice system is essential for sustained economic growth. In a well-functioning, independent, and efficient justice system, decisions are taken within a reasonable time and are predictably and effectively enforced, and individual rights, including property rights, are adequately protected. Among other objectives, the efficiency of the judicial system is important for creating a good business climate, attracting foreign direct investment, securing tax revenues, and supporting economic growth. Research has shown that weak contract enforcement, for example, raises the cost of borrowing and shortens loan maturities, with a resulting negative effect on investment and GDP. Weak court enforcement systems have also been linked to late payments, which can lead to liquidity issues for companies and increase insolvency. Since the publication of the World Bank’s World Development Report 2005, the importance of well-functioning courts to strengthening the investment climate and ultimately to reducing poverty and boosting shared prosperity has been brought to the forefront and become internationally recognized. Indicators of commercial court performance, and business community perceptions of and trust in the courts, are a part of the World Bank Group’s (WBG) country-level investment climate assessments and its influential Investment Climate Surveys and Doing Business reports. Court performance has also become an element of European Union (EU) and Organization for Economic Co-operation and Development (OECD) accession. Helping countries to improve commercial court operations and ensure improved accessibility and effective delivery of services are important components of the development assistance provided by the WBG. The Commercial Court and Enforcement Assessment Tool has been designed to assist assessment teams and client agencies in this effort.
| Summary: | An effective and efficient justice
system is essential for sustained economic growth. In a
well-functioning, independent, and efficient justice system,
decisions are taken within a reasonable time and are
predictably and effectively enforced, and individual rights,
including property rights, are adequately protected. Among
other objectives, the efficiency of the judicial system is
important for creating a good business climate, attracting
foreign direct investment, securing tax revenues, and
supporting economic growth. Research has shown that weak
contract enforcement, for example, raises the cost of
borrowing and shortens loan maturities, with a resulting
negative effect on investment and GDP. Weak court
enforcement systems have also been linked to late payments,
which can lead to liquidity issues for companies and
increase insolvency. Since the publication of the World
Bank’s World Development Report 2005, the importance of
well-functioning courts to strengthening the investment
climate and ultimately to reducing poverty and boosting
shared prosperity has been brought to the forefront and
become internationally recognized. Indicators of commercial
court performance, and business community perceptions of and
trust in the courts, are a part of the World Bank Group’s
(WBG) country-level investment climate assessments and its
influential Investment Climate Surveys and Doing Business
reports. Court performance has also become an element of
European Union (EU) and Organization for Economic
Co-operation and Development (OECD) accession. Helping
countries to improve commercial court operations and ensure
improved accessibility and effective delivery of services
are important components of the development assistance
provided by the WBG. The Commercial Court and Enforcement
Assessment Tool has been designed to assist assessment teams
and client agencies in this effort. |
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