1. Fairness Versus Welfare by Luis Kaplow and Steven Shavell Critique June 25, 2002 Discussion By Luba Berdsley, LEGLR

2. Lawyer’s Interpretation Society objective is to maximize welfare (well-being of individuals) Welfare maximization rather than fairness should determine legal rules, including rules for admissibility of case and legal process Definition of fairness is unclear though it appears to overlap with the notion of well- being

3. Quantity of Rights Vs Quality of Justice in Transition Countries Explosion of rights without considering the costs Inability to enforce due to lack of resources and capacity Absence of policies for addressing the trade-off between the rights and cost of their enforcement (“legal policy”) External pressures

4. Policy Implications of the Trade- off between Rights and Costs Prioritizing rights and the areas where the state assumes responsibility for their enforcement Sensitivity to local capacity –Resources –Human capital

5. Book’s Value Added Shakes the dogma about the absolute values of rights Introduces a new dimension to justice sector reform Encourages a more realistic approach to development

6. Remaining Challenges Measuring externalities Overcoming political pressures Integrating the concept of relativity of justice into development theory and practice –By the governments –By the Bank and other donors

7. Relativity of Justice Justice depends on welfare of society and is relative Rich countries can always afford more justice than poor countries Poor countries should be very selective in what rights they make enforceable

8. Globalization Should we have minimum standards of justice? Is the international community equipped to support such standards with external funding?