The World Bank's Uses of the “Rule of Law” Promise in Economic Development

Abstract

INTRODUCTION Law is at the center of development discourse and practice today. The idea that the legal system is crucial for economic growth now forms part of the conventional wisdom in development theory. This idea's most common expression is the “rule of law” (ROL): a legal order consisting of predictable, enforceable and efficient rules required for a market economy to flourish. Enthusiasm for law reform as a development strategy boomed during the 1990s and resources for reforming legal systems soared everywhere. After more than a decade of reforms of the legal systems, and particularly of the judiciaries of developing countries around the world we are in a position to analyze the theoretical premises of the programs and the strategies of implementation. By many compelling accounts, these projects have been disappointing, failing to deliver the expected results. On the one hand these critiques challenge the theory that a preordained legal institutional framework is necessary for economic growth. On the other, they review particular reforms of laws and of judicial systems carried out in a variety of countries. However, despite these critiques, the appeal to establishing the “rule of law” by the “right” combination of legal rules and institutions continues to spur hope and inspire reforms. The critical energy comes from both veterans of the “Law and Development Movement” and from contemporary scholars in the field. In addition, a number of current participants in these reforms have voiced criticisms of the strategies and projects promoted by their institutions.

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