An Empirical Assessment of the Impact of Formal Versus Informal Dispute Resolution on Poverty: A Governance-Based Approach

Posted: 11 Dec 2006 Last revised: 4 Aug 2013

See all articles by Edgardo Buscaglia

Edgardo Buscaglia

International Law and Economic Development Center

Paul B. Stephan

University of Virginia School of Law

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Abstract

Based on governance-related criteria, this article provides an empirical jurimetric verification of how, where, when and why alternative dispute resolution (ADR) mechanisms provide efficiency-enhancing channels to redress grievances in less developed countries. Based on data collected in 16 developing jurisdictions through a representative sample of poor rural households, the analyses identifies criteria within which ADR enjoys a comparative advantage over court-based formal dispute resolution procedures. The piece further addresses comparative and competitive aspects of formal versus informal dispute resolution and provides policy recommendations in order for the state to assimilate lessons drawn from the functioning of informal mechanisms.

Keywords: alternative dispute resolution, judicial reform, legal reform, economic development, corruption, organized crime, judicial effectiveness, selectivity, processing capacity, case management, cost-benefit

JEL Classification: H40, H41, I30, I31, I32, J70, J71, K00, K10, K40, K41, O18

Suggested Citation

Buscaglia, Edgardo and Stephan, Paul B., An Empirical Assessment of the Impact of Formal Versus Informal Dispute Resolution on Poverty: A Governance-Based Approach. International Review of Law and Economics, Vol. 25, No. 1, pp. 89-106, 2005. Available at SSRN: https://ssrn.com/abstract=950691

Edgardo Buscaglia (Contact Author)

International Law and Economic Development Center ( email )

CA 01080
Mexico

Paul B. Stephan

University of Virginia School of Law ( email )

580 Massie Road
Charlottesville, VA 22903
United States
434-924-7098 (Phone)
434-924-7536 (Fax)

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