Judiciary and Economic Development

Question: Discuss about the Judiciary and Economic Development. Answer: Introduction The Doing business report investigates the manner in which the government policies affect the nature of business in various countries (World Bank, 2017). It has given very meaningful recommendation for how business can be conducted in an easier manner. It also shows how the reforms in the regulatory framework of businesses have reduced the inequity demonstrated by the income of business owners (World Bank, 2017). This research will analyze some of the key indicators that ensure that contracts are enforced. It will also keenly analyze how these indicators have benefited businesses and more attention will be given on the effect of some of the indicators on small and medium enterprise. Indicators for enforcing contract A country that has quality judicial process is likely to achieve an improved business environment because of efficiency demonstrated by the judicial process (Esposito, Lanau and Pompe, 2014). Additionally quality judicial process attracts foreign direct investors and promotes the growth and development of small firms within a country (Islam, 2003). People can easily entrust that there tax revenues are safe if the county has a quality judicial process because the courts are not compromised (Esposito, Lanau and Pompe 2014). Quality judicial process implies that the courts are accountable and embraces integrity in all its functions. Most of the small and medium economies have ensured that they attain a quality judicial system that will promote business efficacy for the small and medium enterprises. The contracts that made by the small and medium enterprises can only be enforced through a competent system of the judiciary that is not compromised through corruption and it is capable of interpreting the law in fair and just manner. Most the enterprises in sub Saharan Africa and East-Asia are small and medium and thus they have created a reform process that is targeted at creating a formidable judicial system that offers quality judicial services. Indonesia initiated a very simple process for the handling small claims which mainly emanate from the small and medium enterprises. The same has also been implemented in countries like India and Cte dIvoire which have created a judicial structure that is efficient and offers quality simple procedures for the small and medium enterprises. It bear noting that the quality jud icial process encompasses good case management and court structures and procedures that can efficiently enforce contracts and an automated court system. The laws that prescribe how business should be conducted in a country may be complicated and the contracts of the small and medium enterprises may not have anility to seek legal redress. A quality judicial process thus will assist them to attain justice by enforcing their contracts through quality interpretation process of the law by the judiciary. Quality judicial process is achieved allowing alternative dispute resolutions mechanism in the courts that will assist the small and medium enterprises that do not have the money to pay for litigation access justice in an efficient manner and grow their entities. Automated Court System An automated court system has been credited to reduce the level of corruption in court because of lack of contact between the court official and the parties of a case. Some of the features of an automated court system include an electronic system that is used to register the cases in court. It is beneficial to the business because it allows the efficient handling of court cases and thus justice is likely to be achieved between the parties. Such a system is likely to make business people save on cost documentations and the general costs applied in enforcing contracts. Court automation factors have been very common in the highly developed economies. It is imperative to note that countries like Spain have an automated system for registering cases and this encourages the speedy commencing of cases in court. This ensures that the medium and small enterprises can grow their business and boost the economies of their nation. The automated system ensures that there is sanity in the small and medium enterprises which gives them the capacity to grow and develop. A country like Rwanda is a good example of a country that has promoted the Integrated Electronic Case Management System (World Bank, 2017). It is important to note that Rwanda is a country that is defined by several small and medium enterprises because it is still a developing country. However, the automated system has helped the country improve economic efficiency and the sustainable development and growth of the enterprises. It is through the application of such an automated system that developing countries will develop. When the traders are able to save cost and time in the court disputes through the automated systems Rwanda aims to make the small and medium maximize the their time and funds on growing their enterprises instead of using the funds in court process and corruption activities in the judiciary. As has been noted the automated court system reduces the chances or possibility of corruption taking place and thus increases transparency in the business and the court process. The fact there is an automated system in the judicial process implies that the cost of enforcing contracts is significantly low thereby the small and medium have the opportunity to grow and expand their entities. Court Structure and Proceeding The court structure entails the criteria that are applied by the courts to select the judges. Where highly qualified judges are used in contract matters the rulings and judgments are usually of good quality. Proceedings must also be carried in a specialized court such as a commercial court that understands contract cases which are mostly commercial cases (World Bank, 2017). The parties in a case are able to get the best outcomes of their cases and this will improve the business of individuals because very credible directions are given by a commercial court. Case Management System A good cases management system ensures that cases in court are hard expeditiously without regard to delay. A good cases management system should be able to uphold the legal equity maxims that delay defeats equity and that justice delayed is justice denied. The performance of the court is thus improved if its case management system is underpinned by necessary adjournments and the court has schedule that ensures the parties in a case are heard quickly so that they can go and continue with business. It also leads to the general development of economies and the credit markets become more developed thereby being of good benefit to the business (Dam 2006). Alternative Dispute Resolution Alternative dispute resolution mechanisms are less costly as compared to the court cases because they do not involve a lot of legal fees. This is an advantage to people who have small business because they can solve disputes without spending so much. Such mechanism are not defined by strict rules and procedures like the courts and therefore the parties can freely negotiate the dispute and reach to a conclusion that is agreed by both parties. Mechanisms like mediation have been held to benefit both parties in a dispute since no one becomes a looser in these cases. Reflection on Research Process The research process has been very educative as I have been able to learn many new aspects in the. I have been able to learn that through this report various governments can set the basic capital requirement for business so that they can regulate fair competition in the market. The recommendation that have been given in the doing business report are very instrumental in enabling people to conduct their business easily. Other important aspects that I learnt include the many reforms that have been inspired by information that the report gives. From the research I am able to be very resourceful in my community since I can offer advises to small and medium business around me on how they can conduct their business efficiently. I noted that after the world economies crisis in 2008 most the recommendation in the doing business report on enhancing the enforcement of contracts to ease the process of doing were applied in most of the economies and this played a significant role in the reform p rocess. I have also learnt that if the businesses are well regulated and contracts are enforced efficiently the productivity level increase and more jobs are created. Getting some information in this research was quite tedious because of the many pages that one has to read but all this was not in vain because the benefit was more important. Another challenge that was posed during this research is the fact that some information given by the report was very scanty and there is very little material to research from. It can thus be evinced in this research that there is no much reference on the arguments because the only wealthy resource was the doing business report 2017. What I concluded from the research is that an efficient judicial process and mechanism plays an anomalous role in enforcing contracts and boosting the economies of different nations. References Dam, K. (2006). The Judiciary and Economic Development. University of Chicago Law Economics, Olin Working Paper 287. Available at Social Science Research Network (SSRN). https://ssrn.com/abstract=892030 Esposito, G., Sergi, L., and Sebastiaan P. (2014). Judicial System Reform in Italy: A Key to Growth. IMF Working Paper 14/32, International Monetary Fund, Washington, DC. Islam, R. (2003). Do More Transparent Governments Govern Better? Policy Research Working Paper 3077, World Bank, Washington, DC. World Bank. (2017). Doing Business2017 Equal Opportunity for All Available at https://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual-Reports/English/DB17-Report.pdf