Yesterday the International Chamber of Commerce and the Asian Development Bank released a new report quantifying the economic impact of unresolved low-value commercial disputes. The report specifically mentions ODR as a possible solution.

From the Executive Summary:

“Commercial disputes which fail to reach a resolution impose substantial and far-reaching costs on businesses and economies. The direct losses to businesses, incurred through attempts at resolution and write-offs, represent only the tip of the iceberg. Beneath this lies a much larger set of significant economic consequences, constraining business growth, deterring investment and innovation, and weakening market performance. These consequences are felt most keenly in developing countries, where dispute values are frequently lower than the cost of pursuing resolution, and a lack of affordable resolution options represents a barrier to accessing justice.
This report, commissioned by the International Chamber of Commerce (ICC), is the first to set out a comprehensive framework linking a lack of resolution for low-value commercial disputes to wider economic outcomes. In this setting, we define a low-value commercial dispute as a dispute with low monetary value where the expected costs of resolution exceed the expected value of the claim.5 This is particularly relevant to small and medium-sized enterprises (SMEs) given that they typically transact on a smaller scale, meaning dispute costs are more likely to represent a greater proportion of the claim itself. Drawing together economic theory, empirical evidence, and case studies, it demonstrates how disputes—particularly those that remain unresolved—create a chain of economic effects that extend well beyond the parties involved.”

Learn more, and download the full report, here: https://iccwbo.org/news-publications/report/the-economic-impact-of-unresolved-low-value-commercial-disputes/