Author: Sílvia Pimentel

Source: Diário do Comércio - SP - ECONOMY - 26/10/2009

The Judiciary has moved forward after its reform in 2004, but it has a long way to go. Decisions are still time-consuming, not all judges are familiar with economic matters and the “kindness” of magistrates, when interpreting a contract as a social and not a private instrument, increases the financial risk, causing legal uncertainty. These were some of the conclusions of the participating economists, yesterday, from a panel coordinated by the vice president of the São Paulo Commercial Association, Roberto Macedo, during the Congress on Judicial Power and Economics - Problems and Challenges, of the International Academy of Law and Economics, which ends today in São Paulo.

"The Judiciary helps to expand or to reverse economic growth each time it signs a sentence," said economist Paulo Rabello de Castro, stressing the impacts of faster and more effective justice in increasing the Gross Domestic Product (GDP). In the economist's opinion, today there is already greater speed with the computerization of the courts, but it is necessary to introduce the concept of the productivity of the judges in the statistics that involve Justice.

Less critical, the economist Armando Castelar Pinheiro, who is part of a working group in the National Council of Justice (CNJ), said that there have been great advances, such as the creation of the binding summary - which requires first instance judges to follow an understanding of higher courts. "There was, for example, the fear of inconsequential judgments involving payroll loans and fiduciary alienation (transfer of ownership of a good from the debtor to the creditor to guarantee the fulfillment of an obligation), but this has not happened," he exemplified. During the seminar, Pinheiro defended greater transparency of Justice and the existence of more mechanisms to measure the speed and legal security produced by the decisions. "We should have indicators on this and use one of these items to guide the promotion of judges," he said.

Although he is not an economist, but a sociologist, Professor José Pastore participated in the debate and argued that every rule must be simple, transparent and self-governing to improve the business environment. And he criticized the fact that employers are still paying a fine of 50% on the balance of the Severance Indemnity Fund (FGTS), when it should be 40%. "This compensation of 10% more has already been paid a long time ago, the deadline has already expired and companies continue with this burden", he added, stating that, today, micro and small entrepreneurs are afraid to hire employees for fear of not having resources in case you need to resign.

The seminar ends today at 18 pm The first panel, which starts at 9 am, The Judiciary in the Vision of Business Entities, will be attended by the president of the São Paulo Commercial Association, Alencar Burti.