The Rule Of Law In The Market Economy

Proceedings from a colloquium

Law, market theory and semiotics together provide a challenging new perspective on economic analysis of law.

A challenging and provocative book that contests the liberal assumption that the rule of law will go hand in hand with a transition to market-based economies and even democracy in East Asia. Using case studies from Hong Kong, China, Indonesia, Malaysia, Taiwan, Japan and Vietnam, the authors argue that the rule of law is in fact more likely to provide political elites with the means closely to control civil society. It is essential, therefore, to locate conceptions of judicial independence and the rule of law more generally within the ideological vocabulary of the state.

"Over the past decade, Carothers has established himself as the leading U.S. expert on democracy promotion. He is a powerful critic not only of the nuts-and-bolts of democracy assistance but also of U.S. grand strategy overall."—SAIS Review Promoting the rule of law has become a major part of Western efforts to spread democracy and market economics around the world. Yet, although programs to foster the rule of law abroad have mushroomed, well-grounded knowledge about what factors ensure success, and why, remains scarce. In Promoting the Rule of Law Abroad, leading practitioners and policy-oriented scholars draw on years of experience—in Russia, China, Latin America, Central and Eastern Europe, the Middle East, and Africa—to critically assess the rationale, methods, and goals of rule-of-law policies. These incisive, accessible essays offer vivid portrayals and penetrating analyses of the challenges that define this vital but surprisingly little-understood field. Contributors include Rachel Belton (Truman National Security Project), Lisa Bhansali (World Bank), Christina Biebesheimer (World Bank), Thomas Carothers (Carnegie Endowment), Wade Channell, Stephen Golub, and David Mednicoff (University of Massachusetts, Amherst), Laure-Hélène Piron (Overseas Development Institute), Matthew Spence (Yale Law School), Matthew Stephenson (Harvard Law School), and Frank Upham (NYU School of Law).

This book examines the institutional dimension of markets and the rules and institutions that condition the operation of market economies.

In Law in a Market Context Robin Paul Malloy examines the way in which people, as social beings, experience the intersection of law, markets, and culture. Through case examples, illustrative fact patterns, and problems based on hypothetical situations he demonstrates the implications and the ambiguities of law in a market society. In his analysis he provides a complete and accessible introduction to a vast array of economic terms, concepts, and ideas--making this book a valuable primer for anyone interested in understanding the use of market concepts in legal reasoning.

"How does the lack of legitimacy of property rights affect the dynamics of the creation of the rule of law? The authors investigate the demand for the rule of law in post-Communist economies after privatization under the assumption that theft is possible, that those who have "stolen" assets cannot be fully protected under a change in the legal regime towards rule of law, and that the number of agents with control rights over assets is large. They show that a demand for broadly beneficial legal reform may not emerge because the expectation of weak legal institutions increases the expected relative return to stripping assets, and strippers may gain from a weak and corrupt state. The outcome can be inefficient even from the narrow perspective of the asset-strippers."