IBA report supports positive legal aid cost benefit

Publicly funded legal services are as important for economic growth as providing functioning hospitals, schools and roads, according to a report presented to this year's International Bar Association's annual conference in Seoul.

Prepared by the IBA's Access to Justice & Legal Aid Committee and the World Bank, the report, A Tool for Justice: A Cost Benefit Analysis of Legal Aid, is the outcome of discussions first started in 2017 about how increased access to justice can be a "win-win" for businesses, the economy and society at large.

More than 50 cost and benefit studies of legal aid programmes from around the world were surveyed for the report, with evidence compiled from civil and common law jurisdictions in Australia, Bangladesh, Canada, Liberia, Malawi, South Africa, the United Kingdom and the United States of America. It includes references to research from Scotland, and experts providing input included Professor Alan Paterson from the University of Strathclyde.

It reveals that around 5.1bn people – two-thirds of the world’s population – lack meaningful access to justice. That traps people in vicious cycles of poverty, inequality and marginalisation. The burden of this justice gap falls disproportionally on the most vulnerable, including women, children, minorities and people with disabilities. Lack of access to justice also increases the risk of conflict and violence within a society. Legal aid is a recognised way of providing access to justice, with aid programmes most frequently required for divorce, domestic violence, evictions, homelessness and unsafe housing conditions, but funding is often seen as a drain on state finances.

However, not providing legal aid, the report argues, does not save money. The cost of problems left unresolved by a lack of legal aid do not disappear – they simply shift to other areas of government spending such as healthcare, housing, child protection and imprisonment. A study for Canada estimated these costs to be approximately 2.35 times more than the annual direct service expenditures on legal aid; and a cost benefit analysis of a domestic violence legal aid programme in the state of Wisconsin, USA, found that each prevented incident of domestic violence saved $3,201 in avoided medical care, mental healthcare, lost productivity, and property damage costs.

IBA President Horacio Bernardes Neto commented: "The evidence is clear – improving access to justice benefits society and contributes to economic growth. I urge the international community to read this report and share the findings. In a world of injustice, it is vital that we work together to redress the balance."

Georgia Harley, senior governance specialist at the World Bank, added: "Legal aid is undeniably good economics. Strengthening legal aid and related services increases access to justice and ensures that the rule of law is upheld. Most importantly, improving legal aid programmes saves government money and strengthens the economy in the long term."

Andrew Mackenzie, Scottish co-chair of the IBA Access to Justice & Legal Aid Committee, said: "This is another significant international research project commissioned by our committee, adding to our recent reports into access to justice for children and also disabled persons, ombudsman services and legal expenses insurance."