Legal systems and economic development: specific examples and general conclusions

Abstract

This article presents the author's analysis of the impact of legal systems on the economies of individual countries. It summarizes the views of several authoritative scholars in the humanities (N. Ferguson et al.) and assesses practical cases of reform, primarily of judicial systems, aimed at aligning them with free market demands. Specifically, it analyzes scholarly perspectives both theoretically and in defining a list of practical measures, for example, in accordance with the 1989 Washington Consensus. It is argued that the lack of a comprehensive set of measures to reform the legal system (with a one-sided emphasis on protecting property rights) can lead to the failure of economic reforms. The conclusion is that any legal system has a significant impact on the economy; however, the superiority of any one system cannot be definitively asserted outside the overall context of legal regulation and other key social relations.