Description: Well-functioning enforcement mechanisms reduce transaction costs, increase trust, and foster the availability of credit. An enforcement regime that results in delays or excessive costs is likely to affect the availability and the cost of credit. The use of alternative dispute resolution mechanisms (e.g. mediation and arbitration) in jurisdictions where the rule of law is weak and enforcement processes before the courts tend to be long and burdensome is recommended by the international financial institutions and provided in international secured transactions instruments. This comparative research aims to examine different approaches in the use of alternative dispute resolution mechanisms in the enforcement of security interests and insolvency in select jurisdictions.
