Alternative Dispute Resolution Mechanism

ALTERNATIVE DISPUTE RESOLUTION APPROACHES AND THEIR APPLICATION Yona Shamir Israel Center for Negotiation and Mediation (ICNM), Israel (Assisted by Ran Kutner) SC-2003/WS/43 The designations employed and the presentation of material throughout this publication do not imply the expression of any opinion whatsoever on the part of UNESCO concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.
The authors are responsible for the choice and the presentation of the facts contained in this book and for the opinions expressed therein, which are not necessarily those of UNESCO and do not commit the Organization. ACKNOWLEDGMENT This article is a contribution from UNESCO’s International Hydrological Programme to the World Water Assessment Programme. It was prepared within the framework of the joint UNESCO–Green Cross International project entitled “From Potential Conflict to Co-operation Potential (PCCP): Water for Peace,” and was made possible by the generous financial assistance of the Japanese government.
CONTENTS Summary 1. Introduction and Overview 2. The ADR (Alternative Dispute Resolution) Spectrum 3. Negotiation: Principles and Procedures 3. 1. Competitive and Integrative Models 3. 2. Principles 3. 3. Skills 3. 4. Cultural and Identity Aspects 3. 5. Psychological Aspects 3. 5. 1. Psychological Traps 3. 6. International Negotiation 3. 7. Negotiations Over Water 3. 7. 1. International Water Negotiations/Conflicts 3. 7. 2. Intra-national Water Negotiations/Disputes 3. 8. Treaties 4. Mediation 4. 1. The Advantages of Mediation 4. 2. Positive Results of Mediation 4. 3. The Role of the Mediator 4. . Skills and Tools of a Good Mediator 4. 5. The Problems that the Mediator Attempts to Resolve 4. 6. Techniques and Strategies 4. 7. Models and Approaches to Mediation 4. 8. Controversial Issues in Mediation 4. 9. Psychological Issues 4. 10. Ethical Code, Issues, and Dilemmas 4. 11. International Mediation 4. 11. 1. Mediation in International Water Conflicts 5. Consensus Building: Principles, and Procedures 5. 1. Principles and Procedures 6. Conclusion 7. ADR Basics: Definitions Bibliography 1 2 4 6 6 7 10 12 13 14 16 18 18 21 22 23 24 25 25 26 26 26 27 29 29 30 31 31 33 33 36 37 40
ALTERNATIVE DISPUTE RESOLUTION APPROACHES AND THEIR APPLICATION Alternative Dispute Resolution comprises various approaches for resolving disputes in a non-confrontational way, ranging from negotiation between the two parties, a multiparty negotiation, through mediation, consensus building, to arbitration and adjudication The article introduces the key skills required, with particular attention to their important role in the process of negotiation and mediation, with examples of their application in national and international water conflicts. Conflict is endemic to human society, among individuals and groups, and it is important to manage it.
We find stories in the Bible, in the Islamic culture, among Native Americans, First Nations in Canada, and many other traditions that describe processes that have been used from the earliest times to find peaceful solutions to various disputes, and much can be learned from the past. In recent decades, the various conflict resolution approaches have become a widely accepted field both of academic study and of practice, with official and/or legislative functions in many countries. In international relations, they plays an increasing role in containing, managing and resolving potential sources of conflict.
The article reviews its complex development. While conflict can be dangerous, it also carries the possibility of producing creative cooperation in a win–win solution. The key to this is for participants to engage as joint problem solvers, seeking to resolve the dispute, and to try and “enlarge the pie” rather than acting as adversaries and aggravating the situation. A mediator can play a valuable role in this process, facilitate a negotiation process which has come to a dead end, helping the parties concerned to focus on their essential interests rather than defend (or attack) fixed positions.
The principles and procedures of consensus building are dealt with in some detail. The article outlines the principles of negotiation, based on interests and needs of the parties, the use of proper communication, and maintenance of a working relationship as an essential component for reaching a durable agreement. It lists and considers the essential skills needed by negotiators and mediators, and points the different cultural expectations (national, regional, religious, or professional) and the psychological aspects that affect perceptions and communications.
It outlines a range of strategies for and approaches to mediation, and the ethical problems that may arise. 1 1. INTRODUCTION AND OVERVIEW Alternative Dispute Resolution (ADR, sometimes also called “Appropriate Dispute Resolution”) is a general term, used to define a set of approaches and techniques aimed at resolving disputes in a non-confrontational way. It covers a broad spectrum of approaches, from party-to-party engagement in negotiations as the most direct way to reach a mutually accepted resolution, to arbitration and adjudication at the other end, where an external party imposes a solution.
Somewhere along the axis of ADR approaches between these two extremes lies “mediation,” a process by which a third party aids the disputants to reach a mutually agreed solution. This article introduces the key concepts, principles and skills of ADR in a generic form with examples of how they might be applied in the context of water conflicts. The glossary contains definitions of terms used, and readers are advised to familiarize themselves with them. Conflicts have existed in all cultures, religions, and societies since time immemorial, as long as humans have walked the earth.
In fact, they also exist in the animal kingdom. Philosophies and procedures for dealing with conflicts have been part of the human heritage, differing between cultures and societies. Nations, groups, and individuals have tried throughout history to manage conflicts in order to minimize the negative and undesirable effects that they may pose. Conflicts can develop in any situation where people interact, in every situation where two or more persons, or groups of people, perceive that their interests are opposing, and that these interests cannot be met to the satisfaction of all the parties involved.
Because conflicts are an integral part of human interaction, one must learn to manage them, to deal with them in a way that will prevent escalation and destruction, and come up with innovative and creative ideas to resolve them. Dealing with conflicts – “conflict management,” or “conflict resolution” as it has come to be called in professional circles – is as old as humanity itself. Stories of handling conflicts and the art of managing them are told at length throughout the history of every nation and ethnic group who share the same history. Conflicts have been recorded from the very early days of humankind.
We find in The Bible and similar religious and historical documents in different cultures an account of conflicts that were resolved by various processes, including negotiation, mediation, arbitration, and adjudication. We also find accounts of various types of negotiations: between animals and humans, between two persons, between an individual and a group, between two groups, and between humans and God. The first negotiation in The Bible was between the snake and Eve, over the apple in the Garden of Eden. But not all conflicts in religious scriptures have been resolved by alternative/appropriate dispute resolution (ADR).
One that was resolved by force and violence is the story of Cain and Abel. In The Bible we find among many stories of conflicts and their resolution, the story of Abraham and Lot negotiating, where Abraham, in order to avoid a fight, offers Lot a deal that Lot cannot refuse. Negotiation was conducted not only between people, but also between humans and God. Abraham negotiated with God over the fate of the people of Sodom and Gomorra. God also acted as a mediator between Abraham and Sara when she wanted Abraham to expel Hagar and her son.
In the Muslim tradition we find the story of Muhammad who negotiated with God over the number of times that the followers will pray. Muhammad managed to reduce the number from the initial fifty times a day down to five, using as his main argument the necessity to leave enough time for people to do things other than pray. Throughout history, individuals and groups used a variety of ways to resolve their disputes, trying to reach a resolution acceptable to all parties. There is a 2 common belief in all cultures that it is best to resolve disputes and to reach an agreed end to them, because conflict is a destructive force. In the wentieth century many reached the understanding that disputes are normal in human society, and not necessarily destructive, and that if they do not get out of hand they may have within them a potential for growth, maturity, and social changes, an opportunity for new ways of thinking and new experiences. Because conflicts are an integral part of human interaction, one should learn to manage them: to deal with them in a way that prevents escalation and destruction, and arrives at new, innovative, and creative ideas to resolve them. Much can be learned about the different ways in which conflicts have been prevented in the past.
In older societies, resolving disputes was considered a unique ability reserved for the wise and the elders of the community or for religious leaders. More recently, conflict prevention has become a primary focus of interest for everyone, and this has resulted in an ever-expanding field of study and practice. The field of conflict resolution gained momentum in the last three decades of the twentieth century. It has developed into a widely accepted field of study, where skills and strategies are being taught, and changes in philosophical attitudes occur through training and enhanced self-awareness.
The increasing academic activity and practical training initiatives have generated a vast and expanding body of research and publications. The field is characterized by diversity and complexity. It is diverse because conflicts exist in every facet of individual and social life: between business partners, employers and employees, among employees, between trading partners, among neighbors, between parents and their children, husbands and wives, an individual and society, and between countries.
The field of “conflict resolution” has matured as a multidisciplinary field involving psychology, sociology, social studies, law, business, anthropology, gender studies, political sciences, and international relations. The discipline is complex because it deals with conflicts at different stages of their existence, and also because it is a mix of theory and practice, and of art and science, as Howard Raiffa demonstrated so brilliantly in his book The Art and Science of Negotiation (1982). The “science” is the systematic analysis of problem solving, and the ”art” is the skills, personal abilities, and wisdom.
Some conflicts may not be resolved easily, and can last many years. Sometimes these conflicts persist in spite of the fact that they cause heavy losses of resources, and even human life. According to a study at Stanford University (Arrow et al. , 1995) there are three categories of barriers to resolving conflicts: ? ? ? Tactical and strategic barriers; these stem from the parties’ efforts to maximize short or long term gains. Psychological barriers; these stem from differences in social identity, needs, fear, interpretation, values, and perceptions of one another.
Organizational, institutional and structural barriers; these can disrupt the transfer of information, and prevent leaders from reaching decisions that are in the interests of the parties in dispute. A conflict may store within it the potential for a future major dispute, but at the same time it also contains the possibility of future creative cooperation, provided the parties seek what is called the “win–win solution. ” To accomplish this, one must learn to negotiate in a manner that is less competitive and adversarial, thereby invoking the potential for cooperation.
By working together as “joint problem solvers” seeking joint solutions and not working against one another, the participants can “enlarge the pie” that is to be 3 divided. This can be done either by negotiation, or with the help of an impartial third party who will act as mediator. Third-party intervention is used when a negotiation reaches an impasse. It is used to restore belief in the possibility of a beneficial resolution for the parties, future dialogue, and restored relationships, while leaving the control over the decisions with the parties.
President Carter acted as a mediator between President Sadat of Egypt and Prime Minister Begin of Israel. Former US Senator George Mitchell acted as a mediator in Northern Ireland. An outside third party, whether a person (Archbishop Desmond Tutu), a group of people, a representative of a state (Henry Kissinger), or an international organization (The Vatican, The UN) can act as a mediator, in an attempt to help the parties reach an understanding, and an agreed solution to the conflict.
A third party, a neutral, can also act as an arbitrator, hear the parties’ arguments and reach a decision which can be binding, or non-binding according to the agreement made beforehand. A dispute between Israel and Egypt over the location of the border between the two countries in the Gulf of the Red Sea was settled in favor of Egypt by an international arbitration panel, on September 29 1988. Israel had to return the town of Taba, a resort town near Eilat, to Egypt as a result of the arbitration.
Adjudication is another method that can be used as an alternative in the international arena (The International Court in The Hague) and in the national local system. The courts have the ability to enforce the law in the case of a failure of the parties to reach agreement through negotiation or mediation. There is a law, and a way to enforce it without the consent of the parties. In international disputes, where states are involved, when problems arise due to opposing interests, such as security and/or resources, an outside enforcer cannot act where it is not acceptable to one or more of the parties involved.
Ruling by the International Court can end the conflict only if the two countries agree to abide by its ruling. Conflict prevention, de-escalation, management, and resolution can all be applied to conflicts involving water. The choice of the applicable process will depend on the particular circumstances and context of the water conflict. We will examine each of these key processes and than review their potential role in water conflicts. 2. THE ADR (ALTERNATIVE DISPUTE RESOLUTION) SPECTRUM
On the spectrum between an agreement reached by the parties by direct negotiation, based on mutual understanding, and a binding decision rendered by a third party’s authority in a procedure of adjudication, there are many other ways of dealing with disputes. These options and possibilities create “a menu” of alternative or appropriate dispute resolution (ADR) that parties may choose to use, with the intent of removing a potential source of conflict, preventing its escalation into a dispute, and finding the way back to a constructive cooperative and a potentially productive future working relationship.
The ADR “movement” started in the United States in the 1970s in response to the need to find more efficient and effective alternatives to litigation. Today, ADR is 4 flourishing throughout the world because it has proven itself, in multiple ways, to be a better way to resolve disputes. The search for efficient and better ways to resolve disputes, and the art of managing conflicts, are as old as humanity itself, yet it has only been within the last thirty years or so that ADR as a movement has begun to be embraced enthusiastically by the legal system.
More recently, ADR has become institutionalized as part of many court systems and system for justice as a whole throughout the world. The first ADR method to gain acceptance was arbitration, which shared many of its practices and procedures with the judicial system, including the judge (or arbitrator) deciding the outcome of the dispute. ADR has matured and developed, and mediation is being received as a preferred alternative and has become widely accepted as a process providing more flexibility and less procedural complexity.
The US Federal Civil Rights Act (1964) led to the formation of the CRS (Community Relations Service in the US Department of Justice), which was mandated to help “communities and persons therein in resolving disputes, disagreements, or difficulties relating to discriminatory practices based on race, color, or national origin” (Moore, 1996). “Mediators” were asked to assist in resolving disputes of any sort, and not only to deal with issues of discrimination (Goldberg et al. , 1992).
The US federal government funded Neighborhood Justice Centers (NJC), provide free or low-cost mediation services. Throughout the United States and other countries, the courts became involved in mediation, following Professor Frank Sander’s (Harvard University) vision of a courthouse that would become a dispute resolution center – a “multi-door courthouse” – where each case would be referred to a process most appropriate to it. The NJC’s became part of a city-based, court-based, or district attorney-based alternative dispute resolution service.
The American Bar Association took a proactive role in the process and created CPR – The Center for Public Resources center – which provides ADR services. Following an act of Congress (1990), federal agencies are obligated to use mediation in certain civil cases before going to court. Many states passed a law requiring mandatory mediation. In the private sector, many large US and multinational companies signed a mediation pledge, according to which they use mediation before going to court. Several countries are experiencing similar growth while continuing to develop new and creative ADR processes and applications.
Canada, New Zealand, Australia, and the United Kingdom have become pioneers in the field. In the United Kingdom, the Advisory, Conciliation and Arbitration Service (ACAS) was set up in 1974 to deal with industrial disputes, and at the end of the 1980s commercial mediation services became available, corresponding to the Lord Chancellor’s statement in a television interview, “Mediation and other methods of resolving disputes earlier, without going to court, produce satisfactory results to both sides are, I think, very much to be encouraged” (Acland, 1990).
The ADR movement has been gaining popularity, and a movement that started as an answer to needs of the judicial system, has generated interest in a variety of fields (such as education, society, environment, international, and gender concerns). In the 1980s, the US National Association of Mediation in Education (NAME) was founded, and a large variety of ADR programs, including negotiation, problem solving, and mediation was introduced in schools.
A variety of skills and techniques are taught: communication skills, different approaches of managing conflicts effectively, tracing needs and real interests, moving from positions to interests, how to deal with intense emotions, re-framing, open questions, and so on. The expansion of these programs and practices in education is becoming increasingly widespread. In 1997, there were over 8,500 school-based 5 conflict resolution programs in the United States, taught in over 86,000 public schools.
Alongside the search for ways to solve or manage diversities that turn into disputes and help people manage/solve existing disputes, advocates of ADR emphasize the need to develop and use the skills resulting from diversity that can help to prevent the escalation of disputes; this can be done by using joint problem solving in conflict situations, in order to enhance cooperation for the improvement of future relations. 3. NEGOTIATION: PRINCIPLES AND PROCEDURES Goldberg, Sander, and Rogers in Dispute Resolution: Negotiation, Mediation, and Other Processes (1992) define negotiation as “communication for the purpose of persuasion. Negotiation is a process in which parties to a dispute discuss possible outcomes directly with each other. Parties exchange proposals and demands, make arguments, and continue the discussion until a solution is reached, or an impasse declared. In negotiations there are three approaches to resolving the dispute, each with a different orientation and focus – interest-based, rights-based, and power-based – and they can result in different outcomes (Ury et al. , 1993). INTEREST-BASED NEGOTIATION This approach shifts the focus of the discussion from positions to interests.
Because there are many interests underlying any position, a discussion based on interests opens up a range of possibilities and creative options, whereas positions very often cannot be reconciled and may therefore lead to a dead end. The dialogue on interest should be transparent, in order for the parties to arrive at an agreement that will satisfy the needs and interests of the parties. While interest-based negotiations have the potential of leading to the best outcomes, the parties may not adopt it, and therefore we often find that negotiations are “rights-based” or “power-based. ” RIGHTS-BASED NEGOTIATION
When negotiations between parties fail, the parties may then attempt to resort to what they consider to be their rights. This means appealing to the court (local, national, or international) and will result in a legal process in which the law is the dominant feature. POWER-BASED NEGOTIATION Resorting to threat or even violence as a way of communication for the purpose of persuasion is called power-based negotiation (for example, the posture of the Americans in the Cuban missile crisis). Rights-based and power-based approaches are used at times when parties cannot or are not willing to resolve their issues through interest-based negotiation. . 1. Competitive and Integrative Models Negotiations are characterized by polarity between two extremes: ? ? Competition – Cooperation Opposing interests – Common interests Competition and opposing interests lead to a requirement by the parties to divide the assets or resources under dispute. They lead to “dividing the pie” or “claiming value,” 6 in other words a “zero-sum game. ” On the other hand, when negotiations are based on cooperation and identification of common interests, this can lead to seeking opportunities for “increasing the pie” (which is also called “creating value”).
When negotiations are based on common interests, cooperation, and joint problem solving, this is called the “integrative or collaborative model. ” This model was developed at PON (the Project On Negotiation) at Harvard University in the early 1980s. It is useful for parties to negotiate over a number of issues or resources, since they can try to create value and maximize benefits by trade offs between them. This is because the order of priority among these issues for one party may differ from that of the other and provide an opportunity for exchanges.
Therefore, the parties find ways to increase gains through creativity, originality, and linkage between issues to enlarge the overall pie, thereby creating value. To provide an historical example of the difference between positions and interests, consider the issue of the Sinai in the dealings between President Anwar Sadat of Egypt and Prime Minister Menahem Begin of Israel, in the wake of the 1967 Six Day War. Each leader claimed that the territory of the Sinai, taken over by Israel in the war, belonged to his nation. This was their stated position.
President Jimmy Carter, acting as mediator, interrogated the two leaders as to their interests, and identified them as follows: Egypt wanted sovereignty over the territory, in line with the national position that Egypt would not yield control over the territory which it considered to be its own; Israel’s interest was to have guarantees of security on its border with Egypt, in view of the threat it had been facing on this border previously. President Carter then proposed that the Sinai would be returned to sovereign Egyptian rule, but would remain a demilitarized zone.
This creative solution satisfied the interests of both sides, and was therefore agreed. The principles of the interest-based model can be used in any type of negotiations: from buying a car to resolving a conflict between the United States and Mexico over water, and from buying a company to dealing with the selection of a site for building a wastewater treatment plant. Negotiation based on “rights” or “power” fall under the “adversarial, distributive, or competitive model,” where the parties try to get the best deal for themselves at a cost to the others. A gain for one side means a loss for the other.
Living in a society in which competition is part of the daily experience, we tend to think of competition as the only way to reach our goals. Competition is almost always at the expense of someone else. In the “conventional way,” a negotiation is “zero-sum game” – whatever one side wins the other side loses. Both of the parties assume that it would be best to ensure that they end the negotiation at the positive side of the equation. 3. 2. Principles “The reason to negotiate is to produce something better than the results that you can obtain without negotiation” (Fisher et al. 1991). The goal is to reach an agreement that is acceptable to all parties, to which they remain committed, and which they indeed implement. This is the essence of interest-based negotiations, which has the following principles: 7 INTERESTS–NEEDS Interests are needs (food, shelter, security, and so on), desires, aspirations, fears, hopes, and concerns. Positions are what we want and demand. The interests are the reasons behind the position. In negotiating on the basis of interests, parties will need to: ? ? ? distinguish between positions and interests move from positions to interests list all the interests according to priority think of positions as only one of many solutions to the problem. ALTERNATIVES Alternatives are those actions that one can take outside the negotiations, alone or possibly with a third partner, but without the party with whom one negotiates. The alternative that yields the best outcome for you is called the BATNA (Best Alternative To a Negotiated Agreement). The BATNA is the “best alternative to a negotiated agreement. If any of your alternatives without negotiation is better than the deal on the negotiating table, you will obviously go to the best alternative. If however the deal on the table is better than any of your alternatives, it will be your BATNA. It is important to make sure that the alternatives are indeed realistic, and try to improve your BATNA, because the BATNA influences the way in which you conduct the negotiations. Having a BATNA provides us with the ability to negotiate effectively, and provide the answers to the following: ? ? ?
What are our alternatives if this negotiation reaches a dead end? Do we have an alternative at all if the negotiations fail? Which agreement do we consider (the one which is at least as good as our BATNA)? OPTIONS This is the range of outcomes that the parties agree to consider during the negotiations. Options are outcomes that can enlarge the pie and create value with little or no extra cost to the parties. In developing the options use the following criteria: ? ? ? Use brain storming among the parties to generate a list of options.
Look to the interests in order to generate a broad range of options to choose from. Include options that will answer both parties’ needs and interests. STANDARDS AND CRITERIA Objective standards and criteria can be used in the negotiations to enable both parties to perceive the process as fair and legitimate. Objective standards and criteria include: ? ? ? ? ? market value of an asset or a resource the law regarding the matter being discussed precedents opinion of an expert priority of human water consumption over other users (in water issues). 8 COMMUNICATION
This refers to all the means by which the parties communicate with each another, including spoken words, level and tone of speech, body language, and any other means that parties use to signal to one another. This is important because part of the message is not just the words, but also in the manner in which it is delivered. To consider these aspects one must: ? ? be attentive to all signals of communication speak clearly and exercise “active listening” (discussed in Section 3. 3: Skills). RELATIONSHIP This refers to the interpersonal and intergroup dynamics between all the parties to the negotiation.
Proper consideration of these elements requires that one: ? ? Separate the people from the substance; that is, do not allow oneself to become personal, but stick to the matters being discussed. Consider that there are differences in the way in which people in other cultures value interpersonal relationships as a precondition to holding negotiations. AGREEMENT AND COMMITMENT An agreement should be specific, realistic, operational, clear, and understood by all parties. It should be specific as to who will do what, how, when, and where. In the agreement the parties should commit to what they have agreed.
Before signing an agreement one should ask: ? ? ? ? ? Does the agreement anticipate future contingencies, to avoid surprises and disappointments that may result in motivation not to uphold it? Do we have the authority to sign this agreement? Does the other side have the authority to sign this agreement? Do we want a tentative agreement, subject to final approval? Do we want an interim agreement that covers only part of the issues and leaves the rest for a further and final agreement? In interest-based negotiation one should strive to reach an agreement that will satisfy: ? all or most of our interests, and the other parties’ interests in a way that will be acceptable to them. One needs to ensure that the other parties’ interests are met to a degree that will satisfy their interests because their interests are inextricably tied to one’s own and both needs have to be met in order for the agreement to hold. Be cognizant of parties that are absent from the negotiations who will be affected by them or have an influence on their outcome. When Israel signed the contract with the Chinese on the Falcon aircraft, the agreement was satisfactory to both parties, the Israelis and the Chinese.
Israel just forgot the third party – the United States – which was not interested in selling know how to the Chinese and objected to the deal. As a result, the agreement fell through, and Israel had to compensate the Chinese for not fulfilling the agreement. 9 3. 3. Skills COMMUNICATION SKILLS: ACTIVE LISTENING This is one of the most important and difficult skills for a negotiator and a mediator. Active listening as a skill and technique are taught to, and applied by, negotiators and mediators to enhance their effectiveness during the process.
Active listening means stopping our inner voices, and truly listening to the other person. Listening will enable you to hear important information, and learn a great deal about the other party. By listening attentively you: ? ? ? ? ? Show interest in what the other party has to say. Show understanding to the way they feel, their positions and underlying issues, hidden agendas, demands, and priorities (showing understanding does not mean that you agree with what was said). Acknowledge that people like to be listened to, and when you listen, you create a positive atmosphere.
Hope it may clarify many issues; make you understand the other side’s point of view, and show respect to the other party’s needs, hopes, and fears. Hope it may help to improve the relationship, and break the cycle of arguments. COMMUNICATION SKILLS: TALKING CLEARLY AND PRECISELY Effective negotiation is also making sure that whatever you said was understood in the way that you

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