Alternative Dispute Resolution (ADR) or external dispute resolution (EDR) is the process of resolving disputes without going to court. ADR / EDR can include early neutral evaluation, negotiation, arbitration, mediation and conciliation. Courts may be asked to review the validity of ADR methods, but they will rarely overturn ADR decisions and awards if the disputing parties formed a valid contract to use them. "Alternative dispute resolution," or "ADR," is a term used to describe different methods of settling disputes that are less formal than going to court. These methods can include anything from assisted settlement negotiations, where the people involved in the dispute are encouraged to talk to each other before taking any legal action, to arbitration systems or mini-trials that are similar to what happens in a courtroom. There are also ADR processes that focus on reducing community conflict or helping communities develop There are three types of ADR systems: negotiation, conciliation/mediation, and arbitration. Negotiation systems help to encourage and facilitate communication between those in conflict, without the need for a third party. Mediation and conciliation are similar in that they both involve a third person to help resolve an issue or improve a relationship between disputants. Mediators and conciliators may only help facilitate communication or assist with the direction and form of a settlement, but they do not have the authority to make any decisions or rulings. Arbitration systems allow a third person to decide how to resolve a dispute.
ADR programmes can have a positive impact on different areas associated with development, such as the rule of law. When ADR programmes are well-designed and carried out in the appropriate conditions, they can help with court reform, making it easier for people to access justice, make those who use the programme happier with the results, reduce delays and lower the cost of sorting out arguments. ADR programmes can also be useful for training community leaders, encouraging people to get involved in civic duties, helping communities to manage change smoothly and reducing tension to prevent or resolve development conflicts informal ADR systems have a lot of advantages. They're less expensive and often less scary for populations who don't have a lot of power or money. This results in more people being able to get justice, which is especially important for poor people. These systems are also less expensive for the state and may be more easily put in areas where underserved populations can benefit. However, we don't have enough data yet to know exactly how successful ADR is at enhancing access or how much it costs in comparison to formal legal procedures. Even though we can't measure the impact perfectly, it's still clear that ADR has a positive impact. ADR programmes can be beneficial in many ways, but they cannot replace formal judicial systems. Judicial systems are required to establish a legal code, address fundamental social inequality, offer governmental sanction, and serve as a court of last resort for disputes that cannot be handled by voluntary, informal means. Even under ideal conditions, the best-designed ADR programmes require substantial management and are labour-intensive. There are a few issues to consider when thinking about the potential consequences of ADR. Some people might be afraid that ADR could lead to citizens giving up on conventional, community-based dispute resolution methods. However, this research found several examples of ADR programs that not only worked well with previous informal methods, but also improved them. Second, while ADR programmes cannot resolve disagreements between parties that have vastly different levels of power, they can be created to improve class discrepancies; for example, third parties can be used to balance out inequalities between disputants. Third, there is no clear connection between ADR efficacy and national income distribution. In economies that are as different as the United States, Bangladesh, South Africa, and Argentina, ADR programmes provide essential social functions..