Business reforms have an impact not only on businesses, and thereby on the economy and society, but also within government. When one part of government carries out a reform, it is noticed by others in government – and sometimes dynamics are created that lead to even more reforms.
Back in 2008, the International Finance Corporation (IFC) was approached by the Bangladesh chapter of the International Chamber of Commerce (ICC-B) for support in bringing its ambitious idea of arbitration into practice. Three years of rigorous preparatory work – including due diligence of market demand, learning about global experience, and socializing the idea among stakeholders in Bangladesh – led to the establishment of the Bangladesh International Arbitration Center (BIAC) in 2011.
This initiative – through an IFC-supported consortium of three premier business chambers: ICC-B, the Dhaka Chamber of Commerce and Industries (DCCI) and the Metropolitan Chamber of Commerce – was an important milestone in itself. But there was more to come.
From establishing a facility to changing the law
During project design, the implementing team thought that establishing and operationalizing BIAC would be sufficient for introducing ADR in Bangladesh. Implementation, however, had more sobering lessons. It quickly became apparent that, for BIAC to succeed, changes would also be required in the legal and regulatory environment governing dispute resolution. As the organization’s credibility was critical to its operational success, the team initiated discussions with the Ministry of Law (MoL) to win its support for the enactment of regulatory and legislative changes, as well as the endorsement of BIAC rules.