The Puzzling Underuse of Arbitration in Post-Communist South-Eastern Europe

Bruno Schonfelder

Post-Communist Economies, 2007, vol. 19, issue 1, 117-130

Abstract: Dispute resolution by arbitration is available in all post-communist Balkan countries but it has not become popular among businessmen. The article argues that this is a puzzle and not easy to rationalise. Arbitration services have advantages over state court services and some of these advantages arguably are particularly significant in post-communism. The article reports a survey of lawyers which suggests that even 15 years after the beginning of transition plain ignorance has remained a key explanatory factor for the failure of businessmen to use arbitration. Another finding is that trust in arbitration tribunals tends to be shaky. An argument rooted in the incomplete law literature is used to show that in some cicumstances arbitration tribunals may be more prone to favouritism than state courts.

Date: 2007
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DOI: 10.1080/14631370601163285

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