IDB Experience in Justice Reform February 12, 2003

Some Background on IDB Support for Justice Sector Reform IDB support for modernization of justice systems initiated with region-wide conference in 1993 entitled Justice in Latin America and the Caribbean in the 1990s: Challenges and Opportunities. The conference galvanized interest in justice system reform drawing upon IDB support. Document approved by the IDB’s Board of Directors in 1994 authorizing the Eighth General Increase in Resources identified modernization of the state as a key area of activity and endorsed assistance to countries’ efforts to promote strengthening and modernization of the judicial system.

Background… IDB Board approved the document Frame of Reference for Bank Action in Programs for Modernization of the State and Strengthening Civil Society. It recommends Bank involvement in justice sector reform encompassing civil and criminal law and entailing actions in diverse areas. law reform and promotion of civil and human rights justice administration strengthening legal aid and civic education; access to justice alternative methods of conflict resolution development of human resources in justice sector infrastructure promotion of citizen security

Background… The document provided general guidelines but left room for the Bank to respond to the needs and demands of countries in a range of justice reform areas. Support in the sector based on broad mandate from IDB charter of supporting social and economic development but also more specified mandates related to values (democracy, human rights, etc.) thought to be associated with development of countries in the region.

Background… New Modernization of the State Strategy under consideration of Board of Directors explicitly identifies as priority areas of action for the IDB: the consolidation of the democratic system the establishment of the rule of law enhancing institutions at the foundation of a dynamic and competitive market economy, strengthening public management and policy-making capabilities The needs and demands of the region’s countries are far- reaching in the justice sector due to needs to enhance investment climate and the growth of the market economy, reduce pervasive social inequalities; fight problems of growing crime and violence and persistent corruption, strengthen protection of human/civil rights, and establish a democratic rule of law.

Violent crime and crime in general is a serious and growing problem in the region. Homicides/100,000 Persons, United Nations. Fifth, Sixth and Seventh United Nations Survey of Crime Trends and Operations of Criminal Justice Survey.

But, clearly the severity of the problem of violent crime varies greatly across the region Intentional Homicides in the 1970s and 1990s United Nations. United Nations Survey of Crime Trends and Operations of Criminal Justice Survey. 5th, 6th and 7th Surveys.

Percentage of Men and Women Victimized by Violent Crimes Over Five Years in Urban Areas, Source: United Nations. Global Report on Crime and Justice

Percentage of the Public Victimized by Any Crime in Urban Areas, by Region, Source: United Nations. Global Report on Crime and Justice

Source: Latinobarómetro, 1996 and 2001 Crime in general appears to be increasing in majority of countries in recent years (% of Respondents Claiming Themselves or Family Member Victimized by Crime in Previous Year)

Corruption is also a pervasive problem whose solution depends at least partly upon reform in the judicial sector Absence of Corruption Source: Kaufmann, Kraay, and Zoido-Lobatón, 2001.

Property rights, impartial contract enforcement, respect for laws, fair treatment by the state not well-established Rule of Law Source: Kaufmann, Kraay, and Zoido-Lobatón, 2001.

The problems of corruption and deficient rule of law are of different magnitudes across the region; judicial reform needs and strategies vary Absence of Corruption Source: Kaufmann, Kraay, and Zoido-Lobatón, 2001.

Rule of Law Source: Kaufmann, Kraay, and Zoido-Lobatón, 2001.

In most countries citizens have little confidence in the judicial system (% who express they have “a lot” or “some” confidence in judiciary) Source: Latinobarómetro, 2001; Eurobarometer 21, April 1985.

Judicial Independence The judiciary is independent and not subject to interference by the govt. or parties to dispute (1=strongly disagree; 7=strongly agree) Source: World Economic Forum, 2001

Judicial Corruption The judiciary rarely accepts irregular payments (1=strongly disagree; 7=strongly agree) Source: World Economic Forum, 2001 Source: World Economic Forum, World Economic Forum, 2001

Property Rights Property Rights are clearly delineated and protected by law (1=strongly disagree; 7=strongly agree) Source: World Economic Forum, World Economic Forum, 2001

In some countries case backlogs and delays are an important problem (Clearance Rate (Resolved Cases/Filed Cases) Ave ) Source: Maria Dakolias. Court Performance Around the World. 1999

Congestion Rate (Caseload/Resolved per year ) Source: Maria Dakolias. Court Performance Around the World. 1999

IDB Supported Justice Investments by Approval Year,

Justice System, Violence Prevention and Citizen Safety Loans and TCs (Until June 2001) Total Project Amount (Millions US$) Total IDB Amount (Millions US$) Number of Projects Loans TCs Total

Substantive Areas Addressed Civil Law Reform (32/83 projects) Constitutional Law; Real Property Law; Commercial Law; Labor Law; Consumer Protection Law; Administrative Law and Review Access to Justice (32/83 projects) Public defense and legal aid offices; access to lawyers; justices of the peace, first- level trial courts; small claims courts; civic education about justice institutions and processes and civil rights; ADR Criminal Justice Reform (19/83 projects) Training in implementation of new criminal procedure codes; strengthening public prosecutor’s and attorney general’s offices; drafting crime-prevention policies; rehabilitation programs; information systems; juvenile justice reform (juvenile courts; rehabilitation, job training); violence prevention programs

IDB Investment by Substantive Area Juvenile Justice Violence Prevention Other

IDB Supported Investment for Institutional Strengthening

Level of Investment by Type of Reform Process (% of Total Funds)

IDB support extends to most countries of region focusing in diverse areas ( US$ Millions)