7 minute read
Assessing the Value of Lawyers
Jacqui Thompson*
The International Bar Association has released its long-awaited report measuring the socioeconomic impact of the legal profession globally. The report concludes that the profession contributes 1.7 per cent of the world’s GDP, and its social impacts are significant.
The direct economic impact of the legal profession has been measured at US$1.6tn, or 1.7% of the world’s GDP). This finding comes from the International Bar Association's Impact project, which in June 2024 released its report on the social and economic impact of the legal profession (the Report).
The IBA was established in 1947, shortly after the creation of the United Nations. Its mission was that an organisation comprising the world's bar associations could contribute to global stability and peace through the administration of justice. In the ensuing 77 years since its creation, the membership has grown to comprise more than 80,000 individual international lawyers from most of the world’s leading law firms and some 190 bar associations (including the New Zealand Bar Association | Ngā Ahorangi Motuhake o Te Ture (NZBA)) and law societies, spanning more than 170 countries.
The Findings
The IBA commissioned the report to increase the general public's understanding of the rule of law, the role of lawyers, and the legal profession's social and economic contribution to society. IBA President Almudena Arpón de Mendívil says that “[w]e now have the big data to address – and we must do so – the gap between the scale of the positive impact the profession has and the sometimes negative public perception about the role that lawyers play in society. 1 While 78% of the profession believes that lawyers have a positive impact, only 54% of the general population agrees.
The primary purpose of addressing that gap is not part of a "be kind to lawyers" campaign. In Ms Arpón de Mendívil's view, it is a call to action for the profession to “educate the public about the Rule of Law, increasing awareness of its importance and its significant benefits, as well as denouncing examples of lawlessness”. 2
The Report identified the following social and economic impacts:
Economic Contribution: As noted above, the legal profession contributes 1.7% of the global GDP or US$1.6tn. North America and Europe dominate legal services, accounting for 80% of the market.
Employment: The profession employs over 20 million lawyers, paralegals, and support staff, with an additional 14 million workers in related sectors (e.g. notaries and translators).
Rule of Law: Countries with a strong rule of law benefit more socio-economically from the legal profession, including better healthcare, increased investment, improved gender equity, and higher innovation levels. An independent legal profession can hold the government accountable.
Access to Justice: Improved access to legal representation can reduce inequality by 5% and decrease cases of governmental overreach by 25%.
Social Impact: A robust rule of law is associated with higher life expectancy, better education outcomes, less pollution, and greater protection of minorities.
Rule of law
The precise meaning of the phrase rule of law is open to interpretation and there is no clear definition of the standards to be applied. The Report has, therefore, used the definition formulated by the former Secretary General of the United Nations, Kofi Annan, who said:
“For the United Nations, the Rule of Law refers to a principle of governance in which all persons, institutions, and entities, public and private, including the state itself, are accountable to laws that are publicly promulgated, equally enforced, and independently adjudicated, and which are consistent with international human rights norms and standards. It requires, as well, measures to ensure adherence to the principles of supremacy of law, equality before the law, accountability to the law, fairness in the application of the law, separation of powers, participation in decision-making, legal certainty, avoidance of arbitrariness and procedural and legal transparency”.
The Report found that the functioning of society depends heavily on the day-to-day work of legal professionals. Yet the Report also frankly acknowledges the challenges and threats to the rule of law globally. Strong adherence is available for only a minority of the world’s population. 3
The research demonstrates the impact of a strong rule of law. Countries with an independent legal profession can hold governments accountable, attract more investment, provide better healthcare, and improve gender equity.
The Report says that a robust rule of law can help countries to achieve greater socio-economic inputs, including:
A higher life expectancy.
30% more girls completing secondary education.
53% less pollution.
34 million fewer youths that do not engage in education, employment or training; and greater protection of minorities, including LGBTQI+ communities.
A reduction in informal employment by $34m globally through improvements in access to justice.
The World Bank has also found the correlation between the rule of law and the GDP per capita to be persuasive. 4
The Report notes, "A one point increase in the Rule of Law Index brings an 0.82% increase in GDP. By building and maintaining the rule of law, legal professionals help create the foundations for economic growth.”5
Call to action
Having gathered the data, what do we do with it? The IBA intends to focus on several areas of improvement required to preserve and strengthen the impact of the legal profession. These include:
Ongoing initiatives to promote equality, diversity and well-being in the legal profession: enhancing access to legal representation and research and awareness about lowering barriers to access. The IBA will do this in collaboration with international institutions, including the World Bank and the United Nations.
Advocacy and support for policy-making: the IBA will continue to issue public statements condemning state actions that undermine the rule of law; build and disseminate research, guidelines, best practices and legal advice on issues such as human rights violations (mainly through the work of the IBA's Human Rights Institute), media freedom, modern slavery, arbitration and artificial intelligence (AI) regulation, as well as continuing crucial work addressing the abolition of criminal punishment for LGBTQI+.
Education and communication: the IBA “will redouble efforts in these areas”, by providing educational programmes for young lawyers, technical assistance to legal practitioners and institutions or materials to broaden public awareness of the rule of law.
Ethics stewardship: the IBA will reinforce guidelines and best practices to help legal professionals uphold the highest possible ethical standards.
What is our role in Aotearoa New Zealand?
“This study underlines the need for law societies, bar associations, law firms, law departments and other professional stakeholders to work collectively to uphold the Rule of Law. It is an important step in gaining a better understanding of the profession’s social and economic impact, the factors that drive it, and potential ways to improve it.” 6
Almudena Arpón de Mendívil, IBA President
The IBA recently met to present the Report to members. Those in attendance included members from Australia, India, Hong Kong, Cambodia, Maldives, Japan, Kazazhstan and elsewhere. Tiho Mijatov, an NZBA Council member, co-chair of our Advocacy Committee, and our IBA representative, attended on behalf of the NZBA.
The NZBA has thanked the IBA for preparing and publishing its Report. It is evident that many of the issues about access to justice and the rule of law in Aotearoa New Zealand are held in common with other justice systems, from the availability of legal aid, to the need for civic education about the institutions of the justice system, to threats to the independence of the judiciary. Perhaps the most frightening threat is what Almudena Arpón de Mendívil described as the "... subtle attrition in many countries with democratic governments."
The IBA encourages its members to circulate the findings of the Report among lawyers, legal organisations, and policy-makers. The NZBA welcomes the Report as an empirical, research-based assessment of the impact of lawyers – including the independent bar – on the rule of law.
If members have any comments to make about the Impact Report or suggestions as to how we can contribute to strengthening the rule of law, please email us.
* Jacqui Thompson LLB (Hons) Executive Director | Kaiwhakahaere matua New Zealand Bar Association | Ngā Ahorangi Motuhake o Te Ture
REFERENCES
1 https://www.ibanet.org/Impact-Project
2 https://www.ibanet.org/Economic-impact-of-the-legal-profession-valued-at-$1.6tn-states-new-IBA-study
3 The IBA Report on the Social and Economic Impact of the Legal Profession (2024) p7
4 Above p 16
5 Above p 98
6 https://www.ibanet.org/Economic-impact-of-the-legal-profession-valued-at-$1.6tn-states-new-IBA-study
