THE ROLE OF INTERNATIONAL ARBITRATION IN THE DEVELOPMENT OF TRANSITION COUNTRIES: BALTIC STATES AND CIS COUNTRIES AS EXAMPLE
His paper analyses whether arbitration is an effective mechanism for settlement of trade dispute for the developing countries and increasing interest in mediation, compared with arbitration which appears to be becoming more formalized and may be losing some of the features that distinguished it from litigation. Formation and development of the legal system and the functioning of the market depend directly on the reforms and signals that are received for market participants. Undoubtedly, the most difficult sphere for reforming is the issues of litigation and arbitration. Kazakhstan, like many states, is in the process of effectively changing the legal regulation of the economic sphere. To develop the economy, enter foreign markets and attract investment, a strong judicial system is needed. For entrepreneurs, international arbitration is an analogue and a convenient way of resolving foreign business disputes for many years. The existence and functioning of international arbitration in the country is a positive sign for the market. Moreover, as statistics show, the existence of an effective and competitive law on international arbitration and new instruments, as an in-depth consideration or a distance format, attracts not only local market participants to this court, but can also become a regional center for international arbitration. An integral part of the development of the economy is the confidentiality of disputes, especially, this is important in the formation of market relations. International arbitration provides this opportunity in developing countries. Moreover, in the case of two regions (Baltic and CIS countries), it is important to analyze the development of international arbitration. Experience in the field of international disputes, both with Western countries, and the CIS is huge. For 10-12 years the Baltic countries managed to become attractive arbitration centers and develop a non-state dispute resolution tool. According to foreign investors, the existence and excellent practice of international arbitration in the Baltic’s was one of the factors of choice for investment in these countries. Also, the existence of non-state courts avoids delaying the consideration of disputes in state courts. The CIS countries are on the way to reforming international arbitration as one of the most effective instruments of a market economy. Among the main conclusions can be called promoting institutional arbitration in the developing countries, encouraging trade bodies and commerce chambers to start private sector arbitration centers, publishing a model fee schedule to restrain escalation of costs, encouraging more flexible rules of procedure and the use of modern information technology, clarifying the relationship between the judiciary and arbitration, speeding up the appointment of arbitrators and resolution of challenges to awards.