An overwhelming majority (88%) of small and medium-sized enterprises (SMEs) in Armenia believe litigation is the way to solve economic disputes. Over 80% percent also believe that it’s difficult to find a reliable neutral party to facilitate dispute resolution; therefore direct negotiations or litigation is the best option for resolving commercial disputes. Armenia, prompted EF to devote programming resources to improving acceptance of mediation and arbitration as a means to solve business disputes.
EF recently presented the results of these ADR projects at a press conference in Yerevan. Among the highlights: the introduction of revisions to the existing law on arbitration to the Armenia government; the establishment of the first arbitration court in Armenia; and the introduction of a course on mediation into the curricula of the Russian-Armenian Slavonic University in Yerevan. To buttress these developments, over 500 entrepreneurs, lawyers and students took advantage of training and free on-line consultations. EF also supported a large public awareness campaign to raise the understanding of businesses, lawyers and students of law on the benefits of ADR. This three-part approach increases the demand for ADR while concurrently creating the professional skills necessary to support that demand and the legal framework within which ADR can gain credibility.
Ara Nazinyan, Country Director for Eurasia Foundation in Armenia, describes the importance of developing mechanisms for ADR in Armenia by citing its ability to reduce the legal and regulatory barriers for the development of entrepreneurship in the country. “When applied in conjunction with an effective judiciary, ADR methods such as mediation and arbitration support the development of small and medium enterprises by providing these businesses with a means of conflict resolution, which may be tried before a costly court case is initiated.” ADR also provides SMEs with an alternative when faced with a corrupt judicial system where larger companies or even the state would hold a clear advantage.
For more information about the ADR Assessment click here.
