Colombia - Judicial Conflict Resolution Improvement Project

Report No. PID10603 Project Name Colombia-Judicial Conflict Resolution... Improvement Region Latin America and Caribbean Region Colombia, Mexico and Venezuela Country Management Unit Sector Public Sector Management Project ID COPE57369. Borrower Republic of Colombia Implementing Agency Superior Council of the Judicature (SCJ) Calle 12 # 7-65, 5o Piso Palacio de Justicia Tel. 57-1-562-9138 Fax 57-1-565-8945 Date PID Prepared August 6 , 2001 Project Appraisal July 15, 2001 Project Board Date The Project is a Learning and Innnovation Loan and is subject to approval by the Regional Vice President 1. Country and Sector Background The proposed Project constitutes the first phase of a long term initiative undertaken by the Government of Colombia, under the leadership of the Judicial Branch, aimed at improving the rendering by the Judiciary of judicial conflict resolution services in the civil, labor and family law jurisdictions. It is expected that the development of improved conflict resolution services will have three key positive effects. In the first place, it would enable a more effective and lower cost enforcement of contracts, thus, enhancing what is considered a critical condition for private sector development. In the second place, it would create increased incentives for the resolution of labor, family and civil conflicts through peaceful means, thus improving the prevalence of the rule of law and peaceful coexistence among Colombians. In the third place, at the institutional level, it would contribute to improve the judiciary's social legitimacy and ability to respond effectively to the society's justice needs. 2. Project Objectives The overall Project Development Objective consists in significantly improving the Judiciary's timeliness, quality and productivity in discharging its conflict resolution functions. The proposed operation fits squarely with the features of the Learning and Innovation Loan instrument. The Project is modest in size, as it has been designed as a pilot operation involving 32 civil circuit courts. It is aimed basically at testing two promising innovations which, if proved valid, would make a significant contribution towards improving judicial conflict resolutions services in Colombia and probably in many other judiciaries in the developing world. The Project is introducing as an original feature, and will attempt to test, a hybrid change strategy (discussed below) which is aimed at gradually  building up a pro change constituency within the judiciary by placing the initiative for change on judges. Thus, project implementation will enable us to determine whether the proposed change strategy will retain the support of the judicial leadership, generate a significant change dynamic within the various groups of participating judges and contribute to breed a virtuous demonstration effect within the judiciary. The proposed operation seeks to introduce a comprehensive organizational change strategy aimed at tackling concurrently critical institutional and organizational factors affecting the way courts deliver judicial conflict resolution services. The strategy will specifically privilege corporate culture and improved competencies as the driving forces that may generate improved court performance. Project implementation will enable us to ascertain whether the focus on corporate culture and improved competencies as the driving forces of change, and the strategic orientation and content of those components, are the appropriate levers in improving court performance. It is expected that if the hypotheses tested through the proposed LIL are proven valid, it would be followed by regular investment operations aimed at replicating the proposed strategy nationwide. The risks associated with an environment conducive to change would have been significantly minimized in the case of the following operations since the LIL would have helped developed a solid pro change constituency and generated a virtuous demonstration effect for the rest of the court system. 3. Project Description. The Project will specifically promote a comprehensive organizational change strategy in 32 participating civil circuit courts and will provide: (i) technical assistance for developing an organizational culture and competencies and capabilities aligned with the proposed changes in conflict resolution services; (ii) technical assistance for the introduction of changes in the courts' organizational structure, work flows and administrative processes; (iii) technical assistance and grants to align the judiciary's performance evaluation and rewards with the proposed organizational change strategy; (iv) technical assistance, training and equipment for the development of computerized court management systems; (v) improvements in court filing systems and physical facilities; and (vi) monitoring and evaluation systems and improvements in project management capacity. 4. Project Cost and Financing The project would be financed by an IBRD loan in the amount of US$5.0 million that will cover approximately 75t of total project costs. The balance will be financed by the Central Government through resources assigned in the Superior Judicial Council's budget. 5. Project Implementation The SCJ would assume the main responsibility for program implementation. The SCJ is a corporation established by the 1991 Constitution responsible for the planning, human resource management and overall management function of the Judicial Branch. In the discharge of its duties the SCJ is autonomous from the various court systems -the constitutional, criminal, administrative and civil and social jurisdictions. The SCJ is governed by an Administrative and a Disciplinary Board composed of - 2-  six and seven magistrates, respectively. The Administrative Board has assumed direct responsibility for directing the project A Project Coordination Unit has been established to advance project preparation activities. In addition, the PCU has been responsible for the preparation and pilot advancement of some of the activities envisaged under this LIL. The PCU will report to the two magistrates appointed by the Administrative Board. In the discharge of its duties the PCU will: (i) respond to the demands and initiatives arising from the participating courts in carrying out the various project components; (ii) ensure an effective liaison between the participating courts and the SCJ and, particularly, promote an adequate utilization of the SCJ's installed institutional capacity; and (iii) ensure compliance with the Bank's requirements in the areas of procurement, disbursements and financial management. 6. Project Sustainability The sustainability of the proposed operation is predicated on the success of the change strategy supported by the LIL, that is: (i) that the participating civil courts are increasingly recognized within the judiciary as best practice models in terms of swiftness and quality in rendering conflict resolution services, high productivity in the use of judicial resources and increased user satisfaction, as reflected in increased demand for conflict resolution services; (ii) increased pressure by the public for a switch of the civil, labor and family jurisdictions to the new judicial service model; and (iii) increased adherence by the judicial personnel, including the leadership, to the change initiative. It is also expected that as a result of this operation the SCJ will significantly strengthen its institutional capacity to undertake significant organizational change. The proposed institutional arrangements reducing the role of the PCU to a merely coordinating function and maximizing reliance in the SCJ's professional capacity, together with the active role expected from the departmental sections of the SCJ, should go a long way towards building the basis for a judicial organization that will introduce within its abilities the capacity to plan and implement change. Finally, the fiscal sustainability will be mostly dependent on the ability of the judiciary to improve quality while seeking productivity improvements. In the event that improvements in quality would not be compensated by increases in productivity, it will be up to the fiscal and judicial authorities and for society as a whole to determine the extent to which increased investments in justice delivery are warranted because of their return on social welfare, particularly in a country with the conflict levels prevalent in Colombia. 7. Poverty Category The proposed operation is not specifically poverty targeted since its main objective is to improve the rendering of an essential public service such as judicial conflict resolution. However, to the extent that an improved rule of law should specially protect and benefit the poor which are most affected by violence the operation is intended to impact the poor in a highly positive manner in the mediium term. 8. Environmental Aspects Environmental Category [ ]A [ ]B [ X IC - 3 -  9. Project Benefits The proposed operation would benefit directly the litigants of the participant civil circuit courts. It is expected that as a result of the project, litigants would experience a drastic reduction in the period leading to judicial adjudication and a more thorough and open discussion of the controversy with increased involvement and commitment from judges in reaching a fair and quality resolution of the cases. The project will also benefit the participating courts who would be transformed into best practice models with high levels of job satisfaction and morale. Finally, the project will benefit the judiciary for having tried and proved successful an organizational change strategy which may improve the judiciary's social legitimacy and ability to respond effectively to the society's justice needs. Long term effects are the benefits to the poor who are most affected by the prevailing violence, the improvements in governance of the Colombian State derived from the increased legitimacy and independence of the Judiciary and the contribution towards an improved private sector development environment derived from improved effectiveness of contract enforcement. 10. Risks Leadership of judiciary does not establish an environment conducive to change to enable the GJCs and the 32 participating civil circuit courts to act boldly in pursuit of the proposed change objectives; does not strongly and consistently backs the hybrid institutional arrangements proposed for project implementation or does not approve or effectively enforce changes on the performance evaluation and incentives system congruent with proposed organizational changes.Participant judges do not reflect the expected high levels of professional excellence and personal integrity or there is insufficient availability of counterpart funds. 11. Contact Point Felipe Saez The World Bank Venezuela Country Office Edificio Edicampo Piso 9 Caracas, Venezuela 58-212-2679943 -4-