1. Fundamentals of Judicial Institutions Around the World: Myths and Lessons Nuno Garoupa UNIVERSITY OF ILLINOISUNIVERSITY OF ILLINOIS COLLEGE OF LAW Champaign, 2010

2. WHO IS THE BEST? Champaign, 2010

3. WHO IS THE BEST? Champaign, 2010

4. GERMANY Champaign, 2010

5. GERMANYFRANCE Champaign, 2010

6. GERMANYFRANCE BRAZIL Champaign, 2010

7. GERMANYFRANCE BRAZILMEXICO Champaign, 2010

8. Judges from civil law don’t speak English… that’s what’s going on! Champaign, 2010

9. UK Champaign, 2010

10. UKAUSTRALIA Champaign, 2010

11. UKAUSTRALIA CANADA Champaign, 2010

12. UKAUSTRALIA CANADAHONG-KONG Champaign, 2010

13. Judges from common law speak English… but they are outdated! Champaign, 2010

14. JAPAN Champaign, 2010

15. JAPAN THE PHILIPPINES Champaign, 2010

16. EVERYONE THINKS THEY HAVE THE BEST JUDGES AND THE BEST SUPREME COURT!  Civil law countries  Common law countries  Even if heavily influenced by the U.S. Champaign, 2010

17. HOW SHOULD WE COMPARE? WHAT DO WE WANT TO COMPARE? Champaign, 2010

18. HOW SHOULD WE COMPARE? WHAT DO WE WANT TO COMPARE? ==THEORY== ==EVIDENCE== Champaign, 2010

19. ==EVIDENCE== Measures of judicial quality around the world! Champaign, 2010

20. World Bank Champaign, 2010

21. Doing Business Champaign, 2010

22. Closing a Business (I) Champaign, 2010

23. Closing a Business (II) Champaign, 2010

24. Closing a Business (III) Champaign, 2010

25. Closing a Business (IV) Champaign, 2010

26. Conclusions… Common law countries have great courts… … civil law countries have bad courts… … the French are the worst! Champaign, 2010

27. ==THEORY== Civil Law is “Good” Common Law is “Good” Champaign, 2010

28. WHY? Champaign, 2010

29. Unclear why (1)Judge-made law is good and codes are bad. --how is this useful to distinguish US from France now? US statute law? French general principles of law? Champaign, 2010

30. Unclear why (1)Judge-made law is good and codes are bad. --how is this useful to distinguish US from France now? US statute law? French general principles of law? (2) Pro-market orientation of U.S. judges and pro-state interventionism of French judges. --really? Are we in the 19 th century or in the 21 st century? Is the quality of a legal system determined by events from 200 years ago? Champaign, 2010

31. Reading is a problem… Champaign, 2010

32. Unclear why (3) What is the meaning of common law in this context? --US? UK? Australia? Canada? Israel? Champaign, 2010

33. Unclear why (3) What is the meaning of common law in this context? --US? UK? Australia? Canada? Israel? (4) The myth of career judiciary --Higher courts in Europe are also largely appointed by “recognition mechanisms”, although much less politicized. --Juries… Champaign, 2010

34. Unclear why (5) Common law judges are more independent… --Personal? Collective? Administrative? Procedural? Champaign, 2010

35. Unclear why (5) Common law judges are more independent… --Personal? Collective? Administrative? Procedural? (6) The legal culture… --Courts in the US are “deductive” whereas courts in Europe are “axiomatic”… Champaign, 2010

36. There is no theory! There won’t be any theory! It makes little sense to say a particular legal family is “better”! Champaign, 2010

37. There is a more general problem… what about the evidence? What are we measuring with the current data? Champaign, 2010

38. The Evidence is no Evidence What is quality of the judiciary? We cannot measure quality if we do not define quality! Champaign, 2010

39. The Evidence is no Evidence Current measurements are based on a set of “cherry-picked” legal variables to promote a particular point of view popularized by international organizations such as the World Bank and the IMF! Champaign, 2010

40. The Evidence is no Evidence There are oranges and apples. Some people like orange. Others like apples. Let’s ask those people who like oranges what color should the “best” fruit have… “Surprisingly” they say orange Let’s tell those people who like apples they should have oranges because that’s the “best” fruit! Champaign, 2010

41. Policy Consequences (1998-2010) Legal reforms based on these “measurements” have largely failed! They have not improved GDP per capita! They have not improved FDI! They might have reduced institutional quality! Champaign, 2010

42. Conclusions Everyone thinks they have the best judges! It is unclear what we mean by “best”. It is even harder to measure “best”. Policymaking based on alleged measurements has been quite detrimental! Champaign, 2010