Modernization and Institutionalization of Mediation to Resolve Commercial and Investment Disputes in Ethiopia

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2014-03

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Addis Ababa University

Abstract

Dispute settlement is usually considered as an important issue in investment and commercial transactions for disputes are unavoidable. In the modern era, court litigation was considered to be the main and inherent dispute reso lution mechanisms including for commercial and investment disputes. Unlike the needs of commercial and investment disputes, however; Court litigation is generally characterized by, among others, cost ineffic iency, adversarial nature and delay. Consequently, modern alternative dispute settlement mechanisms are becoming more popular in resolving commercial and investment disputes. The primary choice for commercial and investment disputes has been modern arbitration. But, modern arbitration is also becoming more adversarial, costly and lengthy. Therefore, more flexible interest based ADR mechanisms like mediation is becoming more important to resolve investment and commercial disputes. In Eth iopia, resolving disputes using traditional mediation is common throughout the country. But, Modern & institutionalized mediation is very recent and rare. There is also no legal regime specifically governing modern & institutional mediation in the country. Even if we can take mediation and conciliation to mean a similar concept, legal rules governing conciliation are insufficient. However, few ADR centers like the Addis Ababa Chamber of Commerce and Sectorial Association arb itration institute and Court annexed mediation Center at federal courts are rendering mediation services. Using both qualitative & quantitative methodologies as well as primary & secondary data, the research examines modern and institutional mediation in Eth iop ia and the needs to further modernizel and institutionalize it to reso lve commercial and investment disputes. By analyzing primary & secondary data and using logical reasoning, the research recommends, among others, the need to reconsider the policy towards modern and institutionalize mediation on the side of the government, undertaking various legal reforms, strengthening and expanding existing court annexed mediation centers, increasing accessibility of chamber mediation in the country, considering establishment of new mediation centers and the need to consider estab lishing a regional mediation center in Addis Ababa.

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Law

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