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CRISIS OF TRUST OR WHY ARBITRAGE DOES NOT WORK IN ARMENIA
Lusine Vasilyan
"Radiolur"
03.04.2012 17:18
The Arbitration Court of Armenia, which has been functioning since 2007
adjunct to the Chamber of Commerce and Industry has considered only
eleven cases during five years. This is a figure, which, according to
specialists, does not speak in favor of development of this institute
in Armenia.
What prevents the development of the system? Why do businessmen
avoid applying to the Arbitration Court to solve trade disputes? What
should be done for the system to develop in practice? The issues were
discussed during a conference at the Chamber of Commerce and Industry,
featuring local and foreign experts.
There are several explanations as to why the arbitrage fails to
develop in Armenia. Deputy Minister of Justice Aram Orbelyan sees at
least two reasons.
"The services of the Arbitration Court are rather expensive. However,
the sum is not that big, if we take into consideration that the
dispute will be solved quickly during one sitting, and there is no
need to wait for a year or two," he said.
The arbitrage is actually an alternative to the court system, and
at first glance it has privileges over the court. Here consideration
of the issue takes a very short time, the parties to the dispute can
pose certain conditions, e.g. decide when and where the issue will be
considered and choose the arbiter, who will solve the dispute. Trust
is the most important, when choosing the arbiter.
Despite all these privileges the system does not seem to show signs
of development in our country. According to the President of the
Chamber of Commerce and IndustryMartin Sargsyan, slow development is
connected with insufficient level of awareness.
"The greatest problem is the lack of information, not the lack of
trust. This is a new culture, a new institute, and businessmen need
time to understand the good and bad sides of the structure," he said.
Today's conference aims to fill that gap.
Lusine Vasilyan
"Radiolur"
03.04.2012 17:18
The Arbitration Court of Armenia, which has been functioning since 2007
adjunct to the Chamber of Commerce and Industry has considered only
eleven cases during five years. This is a figure, which, according to
specialists, does not speak in favor of development of this institute
in Armenia.
What prevents the development of the system? Why do businessmen
avoid applying to the Arbitration Court to solve trade disputes? What
should be done for the system to develop in practice? The issues were
discussed during a conference at the Chamber of Commerce and Industry,
featuring local and foreign experts.
There are several explanations as to why the arbitrage fails to
develop in Armenia. Deputy Minister of Justice Aram Orbelyan sees at
least two reasons.
"The services of the Arbitration Court are rather expensive. However,
the sum is not that big, if we take into consideration that the
dispute will be solved quickly during one sitting, and there is no
need to wait for a year or two," he said.
The arbitrage is actually an alternative to the court system, and
at first glance it has privileges over the court. Here consideration
of the issue takes a very short time, the parties to the dispute can
pose certain conditions, e.g. decide when and where the issue will be
considered and choose the arbiter, who will solve the dispute. Trust
is the most important, when choosing the arbiter.
Despite all these privileges the system does not seem to show signs
of development in our country. According to the President of the
Chamber of Commerce and IndustryMartin Sargsyan, slow development is
connected with insufficient level of awareness.
"The greatest problem is the lack of information, not the lack of
trust. This is a new culture, a new institute, and businessmen need
time to understand the good and bad sides of the structure," he said.
Today's conference aims to fill that gap.