Madagascar Arbitration and Mediation Centers Towards sustainable access to alternative means of managing commercial disputes in Madagascar

Wednesday, 27 June 2018 11:08 Written by 
  • Location(s): Burkina Faso, Madagascar
  • Type(s): Solution
  • Theme(s): Employment, Peacebuilding, Inclusive and sustainable growth, Justice, Sustainable Development
  • SDG(s): 8. Decent Work and Economic, 16. Peace, Justice and Strong Institutions
  • Locations in Africa: Burkina Faso, Madagascar
  • Types in Africa: Solution
  • Themes in Africa: Employment, Peacebuilding, Inclusive and sustainable growth, Justice, Sustainable Development
  • SDGs in Africa: 8. Decent Work and Economic, 16. Peace, Justice and Strong Institutions
  • Types of ComSec Solutions: Solution

Summary

Exchange visits made in 2011 and 2012 between the Chamber of Commerce and Industry of Madagascar and the Ouagadougou Arbitration, Mediation and Conciliation Center (CAMC-O) of Burkina Faso with the aim of setting up a center of arbitration and mediation backed by a sustainable structure in Madagascar. The initiative aims to contribute to strengthening the competitiveness of enterprises in Madagascar through the improvement of the business climate, particularly regarding the execution of commercial contracts and the adoption of alternative means of dispute resolution (ADR) in the country.

Problem

Being ranked among the least developed countries, Madagascar is recognized for its strong potential, especially in natural resources, which unfortunately can not reverse the impoverishment curve. On average, economic growth (2.3% on average between 2010 and 2015) is still well below population growth (2.8% on average), and reflects a decline in the per capita income of the population and a rate of poverty reaching over 80%.

Also, the establishment of a framework favorable to the promotion of the private sector, in its role of creator of wealth, has always been at the heart of the various successive strategies implemented in Madagascar.

Concerning the improvement of the execution of commercial contracts in particular, an Arbitration and Mediation Center was created in Madagascar (CAMM) in 2000, in the form of a private association. The center was able to benefit from support from certain technical and financial partners. If the CAMM had the merit of existing, as an arbitration center wanted and desired by the business community and the private sector, the fact remains that recourse to the center has been limited: a A dozen cases of arbitration and mediation have been settled by the CAMM since its creation - and the center was practically no longer operational in 2011. However, a study conducted in the same year with local companies showed that 65% of among them have a positive perception of mediation and arbitration, 70% consider their positive impact on the legal business environment, and 53% are ready to provide for a mediation and / or arbitration clause in their contract.

The challenge is therefore to revive alternative modes of trade in Madagascar, drawing lessons from the past to ensure the sustainability of service provision.

Respond to the need to strengthen governance and the functioning of the entrepreneurship and business climate through the prevention and resolution of trade conflicts. The aim is to encourage the search for amicable solutions to disputes arising or in the process of mediation and arbitration through a mechanism for the settlement of disputes and disputes between parties with the intervention of a third party, the arbitrator (or several referees).

Solution

 

In order to respond to the challenge of relaunching the MARCs, but especially their sustainability, the importance of backing the promoter entity to a sustainable structure, led by the private sector (main user) was favored.

Studies and consultations have identified the Antananarivo Chamber of Commerce and Industry (CCIA) as a potential institution to bring the new CAMM, like many successful experiments elsewhere.

In order to ensure full ownership of the vision and approach by the private sector, UNDP supported the organization of a induction and training stay for high-level CCIA representatives at the Center. Mediation and Arbitration of Paris (CAMP) and the Center of Arbitration, Mediation and Conciliation of Ouagadougou (CMAC-O).

The South-South cooperation solution adopted consists of a series of exchange trips in 2011 and 2012 with the objective of preparing the leaders of the CCIA and the private sector in general to take full ownership of the concept and the role they will play. to play in the new configuration of the CAMM to give more depth to mediation and arbitration in Madagascar.

At the end of the mission, a task force composed by the missionaries was set up to pilot the revitalization of CAMM backed by the CCIA.

The group oversaw the review of CAMM's constitution and bylaws, the recruitment of a new SG as well as its capacity building within CMAP and CAMC-O, and the training of mediators for the center (a pool of referees having been inherited from the former CAMM).

The CAMM backed by the CCIA has been operational since 2012. In 2013, it initiated the "Business Bridge OI" network, which groups the commercial conflict management centers of the Indian Ocean islands, in order to facilitate commercial relations between these centers later.

Supported by: UNDP

Implementing Agency: Chamber of Commerce and Industry of Antananarivo

Contact:
Hasina Ramarson,
Program Manager,
Poverty Reduction / Private Sector,
UNDP Madagascar,
This email address is being protected from spambots. You need JavaScript enabled to view it.

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