The cost of litigation in Ireland is higher than the EU average, according to a World Bank report on the costs of doing business.

As a percentage of the claim, legal fees in Ireland were 17.7%, compared to an EU average of 12.5%.

Business-friendly

The report finds that the three most business-friendly economies this year are New Zealand, Singapore and Denmark.

Ireland comes 23^rd in the ease of doing business rankings, below Canada and just above Germany, with a 78.91 percentile, and a scoring drop of 0.51 since last year.

Ireland beats Poland (33), France (32), Spain (30) and Austria (26). But it languishes below competitor economies such as Denmark, in third place, Norway in seventh place, and the US and UK in eighth and ninth place respectively.

The report uses metrics such as dealing with permits, getting electricity, credit availablility, and registration of property, as well as trading across borders and protecting minority investors.

And those economies which make the training of the judiciary mandatory are more likely to enjoy higher resolution rates and better judicial decisions, the report says.

“The training of judges is imperative for increased judicial efficiency and productivity,” the report says.

It cites evidence from Pakistan that judicial training reforms had a positive effect on both court efficiency and, consequently, entrepreneurship.

Competent judge

The report says that specialised training and continuous learning on insolvency law and practice allow the competent judge to make better decisions.

“Economies with training programmes for judges score better and are closer to the best regulatory practice.” the report says.

Training can act as an essential conduit for the introduction of new laws, methods and practices to the judiciary.

“Training can, in effect, make the decisions of judges more predictable.”

Trained civil servants

And new business regulations must be put into practice by trained civil servants and properly communicated, the report says.

From the perspective of service providers – such as officers of land registries, judges, prosecutors or engineers – training serves as a platform to acquire new skills and keep existing knowledge up to date.

Better customer service leads to a public that is more informed about business regulatory processes.

Role of dissemination

“The role of dissemination should not be under-estimated,” the report says.

“The process of improving a business environment often spans several years.”

Public-private dialogue is a powerful tool for increasing reform and business regulatory efficiency.

Ireland’s Chief Justice Frank Clarke has prioritised judicial training and the new Judicial Council will take responsibility for ongoing upskilling on the bench.

Cutbacks

Recently, he complained that financial cutbacks had made it “virtually impossible” to develop training systems for the judiciary.

Belgium increased its ranking this year by strengthening access to credit and by introducing changes to its insolvency legal framework, with all proceedings digitised into a solvency register.

Liquidation laws in Belgium were streamlined to include the ‘liberal professions’ as well as merchants.

Sun-Saharan economy

Mauritius joins the group of top-twenty economies for the first time, and is the first sub-Saharan economy to do so.

That country has “reformed its business environment methodically over time” the report says.

Afghanistan had the most improved economy, with an ease of business ranking of 167^th, and a ten-point score improvement.

This is largely due to an improved legal framework for business and strengthening of corporate governance structures.

The report also found that development contribution fees in Dublin are over five times higher than in Galway.

The report benchmarks business costs in Dublin, Cork, Limerick, Galway and Waterford under the categories of starting a business, dealing with construction permits, getting electricity, registering property and enforcing contracts.

Registering property

Galway comes out on top for starting a business but registering property was fastest in Dublin with an average of just over 30 days compared to over 50 days in Waterford.

Getting electricity in Dublin takes an average 85 days compared to just 44 days in Waterford.

Construction permits take 200 days in Cork, over a month longer than the average 158 days.

The ‘Doing Business’ report is founded on the principle that economic activity benefits from clear and consistent rules, and that strong property rights and dispute resolution provide contractual partners with protections against arbitrariness and abuse.