1. The Law and Development Institute “Rule of Law and Development” Prof. Y.S. Lee 2014 Law and Development Conference May 16, 2014 Manchester, U.K.

2. I. Rule of Law 1.Rule of Law - Formalistic v. substantive 2.Rule of Law and Development -Rule of law itself as an essential achievement of development - Law as means to an end – law as a mechanism to foster social and economic development: examples 3.Law and development initiatives / movements -50s and 60s by a group of lawyers and scholars from the United States to “transplant” U.S. legal practices and methods of legal education at U.S. law schools in the developing world with hopes to facilitate development through effective legal apparatus: considered failure by the 70s - 80s and 90s rule of law projects in the neoliberal contexts focusing on deregulation and privatization - Causes of failure: failure to understand the local context and local needs; lack of due institutional capacities (legislature, judiciary, administration)

3. II. Rule of Law and Development 1.Role of law for economic development -Securing property law enhances individual motivation to engage in economic activities which will give him the benefit of property exclusive to the individual, which contributes to economic development. Good contract and business laws also contribute to economic development by improving predictability and security of business transactions with recourse to legal remedy. -Obviously laws that are considered beneficial to economic development will be of little use unless they are effectively implemented 2.Necessity for a New Analytical Framework - Necessity to study the role and impact of law on economic development in specific key areas, including business transactions (e.g. contract law), property rights, state industrial promotion, competition law, corruption -Law and Development Analytical Framework

4. III. Lessons from the Past 1. Setting realistic targets in consideration of institutional Capacities 2. Rule of law initiatives to meet the local needs 3. Cost-benefit analysis essential for rule of law initiatives Example: 4. Promotion of rule of law in the local context necessary: e.g. meaning of “law”, different legal culture and tradition 5. Rule of law to promote social agenda: local consensus required