Networks

From MicroJustice

• Networks
• Chapter 1
• Panagiotis Tsatsos
• Chapter 1 Introduction

1.1 MicroJustice Latin American countries have some of the most generous legal systems in the world, which incorporate numerous social and economic rights, yet they rank very low in terms of securing those rights for all, particularly for the poor (Gargarella 2002). Madison (1988) showed that one of the main reasons why the underprivileged find it difficult to access the legal system is that, since its origin, the judiciary has been placed too far removed from the people. Factors that lead to the gap between law and social practices are: lack of information (Buscaglia 2001), economic costs (Thomson 2000: 415), corruption (Thomson 2000:74-5, 254-60), and formalism (Thomson 2000: 425). The Government of Bolivia intends to provide real access to justice for the poor. In the last decade a bundle of ideas has been developed, best summarized as bottom-up approaches to legal development cooperation. These ideas contain concepts such as “access to justice”, “legal empowerment”, and recently some scholars even coined the term “MicroJustice” . The approaches share a common concern that legal interventions should benefit the poor, and that their needs and preferences should form the basis for interventions. In the quest for developing a structural and sustainable system to enhance access to rights for all, the MicroJustice approach has been developed by ILA and Tilburg University combining field work and academic research in one product, a first pilot MicroJustice program in Bolivia has been set up since early 2007. The MicroJustice Program fits very well in the policy of making justice accessible and affordable for the lower social classes, guaranteeing real justice and respect of basis human rights. The MicroJustice Program is a novel approach to these problems, based on bottom-up innovations. The goal of MicroJustice is to create paths to justice that are less expensive, less time-consuming and less burdensome. It strives to increase the efficiency of the justice system by making better use of the forces of supply and demand. MicroJustice model developed means offering real access to rights as an alternative and complementary to the formal legal system. The MicroJustice Program’s goal is to develop MicroJustice services as part of the existing micro services as micro credits and micro insurances. MicroJustice aims to give access to justice to people that are not able to ensure their legal position.

1.2 Problem Indication Besides the question of what to make, sell or buy for a company, a more general question is what to do inside one’s own organisation, and what to do outside, in collaboration with other organisations. Next to the question what to do inside or outside, and why, there are the questions with whom to collaborate and who not, and how (Nooteboom, 2002). In this thesis alternative forms of governance will be addressed in cases where MicroJustice repeatedly cooperates with multiple organizations. Their characteristics will be explored and research will be done on how MicroJustice should position itself within this network of players . Firms want to cooperate because they are pursuing a diverse set of business objectives that require cooperation (Powel, 1987). For the case of MicroJustice these business objectives include gaining access to new markets (through the facilitators), benefiting from economies of scale in joint research and or marketing, gaining complementary skills by tapping into sources of know-how, getting things done which go beyond the capabilities and/or scope of MicroJustice (think of activities which can only be done by a legal court), information exchange, etc. If MicroJustice wants to offer their clients the service they need, the organizations is dependent of different players, direct as well as indirect players. Think about the facilitators, the court, civil office, etc. All these players together, including MicroJustice itself, form a network in which MicroJustice has to act. It has to cooperate with every player in different ways. An important aspect of these cooperations is trust. Trust between firms refers to the confidence that a partner will not exploit the vulnerabilities of the other (Barney and Hansen, 1994). Companies are increasingly imbedded in networks or alliances. The economy is no longer a market economy or an organizational economy, but a network economy (Lazonick, 1991). Indeed, networks have become so dominant in the modern economy that they have become an organizational form in their own right (De Man, 2004). Different questions may arise according to networks. Questions about how companies should manage their network, position itself within its network and how their network affects them. All these questions are about how companies should govern their network, thus about network governance.

1.3 Problem Statement “How should MicroJustice Bolivia govern its network? “ Definitions Network: “Generically, a network may be viewed as consisting of 'nodes' or positions (occupied by firms, households, strategic business units inside a diversified concern, trade associations and other types of organizations) and links manifested by interaction between the positions” (Thorelli, 1986).

Network governance: “Coordination characterized by informal social systems rather than by bureaucratic structures within firms and formal contractual relationships between them -to coordinate complex products or services in uncertain and competitive environments (Piore & Sabel, 1984; Powell, 1990; Ring & Van de Ven, 1992; Snow, Miles, & Coleman, 1992).

"A distinct form of coordinating economic activity which contrasts (and competes) with markets and hierarchies" (Powell, 1990).

1.4 Research questions

1) What are networks and why have they become so dominant in the modern economy?

2) Which players belong to the direct external network of MicroJustice Bolivia and what is the relation between MicroJustice and these players?

3) How should MicroJustice position itself within its network?

1.5 Structure In the first chapter an introduction will be given about who and what MicroJustice is, what they do, why they do this, etc. Also the problem indication, the problem statement and the research questions will be discussed. In Chapter 2 there will be paid attention to what networks really are, how they look like, why they are important, etc. This chapter will form a platform for the rest of the chapters, in which research will be done about how MicroJustice should govern its network. In the third chapter the most important players which are active within the network of MicroJustice will be mentioned and their relation with MicroJustice will be described. After this, a conclusion will be drawn about how MicroJustice should govern its network.