Law
and Development
Professor
David Kennedy
Fall
2008
Course
Description:
This course will deal with past and present debates over the role of the legal order in economic development. We will explore the relationships among economic ideas, legal ideas and the development policies pursued at the national and international level in successive historical periods.
Required and recommended readings
marked “DM” are in the distributed materials available at the
distribution center, except when they come from one of the following
texts:
You should purchase:
James Cypher and James Dietz, The Process of Economic Development, 2nd
Edition (Routledge, 2004)
Gerald M.
Meier, Biography of a Subject: An Evolution of Development Economics (
David Trubek and Alvaro Santos, The New Law and Economic
Development (Cambridge University
Press, forthcoming, October 2006)
Raphael Kaplinsky, Globalization, Poverty and Inequality (Polity Press 2005)
Karl
Polanyi, The Great Transformation: The Political
and Economic Origins of Our Time (originally published 1944, 2001 Beacon
Press edition with Foreword by Joseph Stiglitz and introduction by Fred Block)
Victor
Bulmer-Thomas, The Economic History of Latin
America Since
Exam:
The take home exam will be available on the last day of the course and will be due at the Registrar’s office on the last day of the exam period.
Part I: Introduction: What is “Development?”
September
3, 2008
National
Economic Development: A matter for measurement or a matter of history?
Required: Cypher and Dietz, Chapter 2 “Measuring
Economic Growth and Development,” pp. 28-65.
Cypher and Dietz, Chapter 3 “Development in
Historical Perspective” pp. 66-99
DM: David
Kennedy, “What is
‘Development?’ Issues That Have Divided the Profession”
Karl
Polanyi, The Great Transformation (Chapter 4 “Societies and Economic Systems,” Chapter 5
“Evolution of the Market Pattern” and Chapter 6 “The Self-Regulating Market” –
in the 2001 Beacon Press edition, these are pages 45-80
Background:
Victor Bulmer-Thomas, The Economic History of Latin America Since
Independence (Cambridge Press, 2003) Chapters 1-6, but particularly Chapter 5,
“Export-led Growth and the Nonexport Economy”
117-151.
Meier:
Chapter 1, pp. 3-14
Eric wolff,
J. S. Furnival, Progress and Welfare in Southeast
Asia: A Comparison of Colonial Policy and Practice (1941) (contents and pp. 3-84)
See also: H.W. Arndt, Economic Development: The History of an Idea
(1987) Chapter 2 and 3, pp. 9-87; Meier, Leading Issues in Economic
Development (2000) 1-68; Gilbert Rist, The History of Development: From Origins to
Global Faith (1997) Chapters 1, 2 and 4, pp 8-46, 69-79, Walt Rostow,
How it All Began: Origins of the Modern Economy (1975). Walt Rostow, Politics and States
of Growth (1971).
Part II: Economic Theories and National
Development Policies 1950-1980: The Rise and Fall of Import Substitution
Industrialization
september
10, 2008
A.
Growth: Neo Classical and Keynesian
theories of Development
Required: Cypher and Dietz, Chapter 4 “Classical and Neoclassical Theories”
and Chapter 5, “Developmentalist Theories of Economic
Development” pp. 103-157
Alternative
Meier: Chapter 2, “The Heritage of Classical
Growth Economics” pp. 15-40, Chapter 4, “Early Development Economics 1: Analytics”
pp. 53-67, and Chapter 5, “Early Development Economics 2: Historical
Perspectives” pp. 68-80.
DM:
David
Kennedy, “Modest Interventionism: Key People and Key Concepts”
DM: Albert Hirschman, “Preliminary Explanations” in The Strategy of Economic Development (1958),
pp. 1-28.
Background: Meier, Leading Issues in
Economic Development (2000) pp. 297-299 (Lewis on “Economic Development
with
Unlimited Supplies of Labor”)
Gilbert
Rist, The History of Development:
From Origins to Global Faith (1997) 80-103
Walt
Rostow, The Stages of Economic
Growth: A Non-Communist Manifesto (1960);
Albert Hirschman, The
Strategy of Economic Development (1958);
Ragnar Nurkse, Problems
of Capital Formation in Underdeveloped Countries (1955);
W. Arthur Lewis, “Economic Development
with Unlimited Supplies of Labor,” in
september
17, 2008
B.
National Import Substitution Industrialization: The Policy Program and its
politics
Required: Cypher and Dietz , Chapter 9, “The Initial Structural
Transformation: The Industrialization Process” pp. 248-279
DM: Alice Amsden , Statistical Table on ISI
results
Victor Bulmer-Thomas, The Economic History of Latin America Since
Independence (Cambridge Press 2003) Chapter 9, “Inward-looking Development in the
Postwar Period” 268-312.
DM: Carlos Dias Alejandro, The Argentine State and Economic
Growth: A Historical Review, in Government and Economic Development
pages 216-250 (1971).
Background Maurice Girgis, Industrialization and Trade
Patterns in Egypt pages
5-53
Meier, Leading Issues in Economic
Development (2000) 168-169, 180-186
september
24, 2008
C. Heterodox Economic theories of
Development: The left, World systems, dependency and self reliance.
Required: Cypher and Dietz, Chapter 6 “Heterodox Theories of Economic
Development,” pp. 158-188
DM: Gunnar Myrdal, “The Drift Toward Regional
Economic nequalities in a Country,” in Economic
Theory and Underdeveloped Regions (1957) pp. 23-38
DM: Gunnar Myrdal, Appendix 2, “The Mechanism of Underdevelopment and
Development and a Sketch of an Elementary Theory of Planning for Development”
in Asian Drama Vol III (1968) pp. 1843-1940.
Background: Gunnar Myrdal, Economic Theory
and Underdeveloped Regions (Harper
Torchbooks, 1971)
H.W. Arndt, The Rise and Fall
of Economic Growth: A Study in Contemporary Thought (
ANDRE GUNDER FRANK,
Fernando Henrique Cardoso and Enzo Faletto, Dependency
and development in
Peter Evans, Dependent Development: The
Samir Amin, Unequal Development: An Essay on the Social
Formations of Peripheral Capitalism (Monthly Review Press, 1976); Samir Amin, Accumulation
on a World Scale: A Critique of the Theory of Underdevelopment (Monthly Review Press 1974); Samir Amin, “Alternative Development for Africa
and the
Johan Galtung,
Peter O’Brien, Roy Preiswerk, eds. Self-Reliance:
A Strategy for Development (Institute
for Development Studies, Geneva, 1980)
The Club of
Paul Baran, The Political Economy of Growth (Modern Reader
Paperbacks,
1957)
Harry Pearson, “The Economy Has No Surplus: A
Critique of a Theory of Development” in Trade and Market in the Early
Empires: Economies in History and Theory (1957) pp. 320-341
Arturo
Escobar, “Economics and
the Space of Development: Tales of Growth and Capital” in Encountering
Development: The Making and Unmaking of the
Terence Hopkins and Immanuel Wallerstein “Patterns of Development of the
Modern World System” in World Systems Analysis: Theory and Methodology
(1982);
Gilbert Rist, The History of Development: From Origins to Global Faith (1997) 104-139 (postwar
Marxism, dependency,
October
1, 2008
D.
The Legal Element in Import Substitution Industrialization:
The
anti-formalist Social
Required: Duncan Kennedy, “Three Globalizations of Law and Legal Thought 1850-2000,”
in The New Law and Economic Development, David Trubek and Alvaro
DM: David Trubek and
Mark Galanter, “Scholars In
Self-Estrangement: Some Reflections on the Crisis in Law and Development
Studies in the
David Kennedy, “The ‘Rule of Law,’ Political
Choices, and Development Common Sense” in David
Trubek and Alvaro Santos, eds,
The New Law and Economic Development: A Critical Appraisal, (
Background: David Trubek,
“Max Weber and the Role of Law in the Rise of Capitalism” (1974), Roberto Unger, Law and Modernization
(1977);
Part III: Transition 1965-1980
October
8, 2008
A. Adjusting
Strategy in light of Disappointments and problems of implementation
Required: Cypher and Dietz, Chapter 10, “Strategy Switching and
Industrial Transformation pp. 299- 329
DM: Alice Amsden, The Rise of “The Rest” – Challenges to the West
from Late Industrializing Economies (Oxford University Press, 2001) Chapter
1, “Industrializing Late” pp. 1-28, and Chapter 6 “Speeding Up” pp. 125-160
Victor
Bulmer Thomas, The Economic History of Latin America Since
B. the
rise of critique: public choice and rent-seeking analytics
Required: Meier: Chapter 6, pp. 81-94
Cypher and Dietz, Chapter 7, “The State as a Potential Agent of Transformation:
From Neo-liberalism to Embedded Autonomy” pp 191-222
DM: Anne Krueger, Political Economy of Policy
Reform in Developing Countries (1993), Chapter 2 “Economic Policies in Developing
Countries” pp 11- 35, & Chapter 4
“Models of Government” pp. 53-73
DM: Deepak Lal, “The Dirigiste Dogma,” 5-16,
in The Poverty of Development Economics
(1985)
Background:
Deepak
Lal, The Poverty of Development
Economics (1985) and Lal, “The Political Economy
of Economic Liberalization,” World Bank Economic Review 1987; World Bank
Development Report (1983).
C. Efforts
to engage a changing international context
Required: Cypher and Dietz, Chapter 16, “The Debt Problem and
Development” pp 471-495
DM: Gilbert Rist The
History of Development: From Western Origins to Global Faith (1997) Chapter
9 “The Triumph of Third-Worldism pp. 140-170.
Victor Bulmer Thomas, The Economic History of Latin America Since
Independence, (Cambridge University Press, 1994) Chapter 11,
“Debt, adjustment, and the shift to a new paradigm” pp. 353-391
DM: Declaration on
the Establishment of a New International Economic Order, adopted by the UN
General Assembly on 1 May 1974
Background : Wolfgang Friedmann, “The Relevance of International Law to the Processes of Economic
and Social Development,” 60 ASIL Proc., 8 (1966)
Mohammed Badjaoui, Towards a New International Economic Order, (UNESCO 1979), Table of Contents, 97-115
Oscar Schachter, “Dag Hammarskjold and the Relation
of Law to Politics,” 56 Am. J. Int’l L., 857 (1965)
Part IV: Economic Theories and Development:
1980-2000: The Rise and the Chastening of the
October 15, 2008
A. The intellectual framework for
Neo-liberalism and the
Required:
DM: Wilhelm
Röpke, Economic Order and International Law, 86 Recueil des Cours
203-71 (1954) (excerpts)
DM: David Kennedy, “Turning to Market
Democracy: A Tale of Two Architectures” 32 Harvard International Law Journal
373 (1991)
Cypher and Dietz Chapter 15 “Microeconomic
Equilibrium: the External Balance“ pp 440-470
Background: John Jackson, The World Trade
Organization: Constitution and Jurisprudence (2000) 1-6 and 12-29; Jaroslaw Pietras,
“The Role of the WTO for Economies in Transition,” 353-364, in Anne Krueger, ed. The WTO as an International Organization
(1998).; Stephen Cohen, Joel Paul and Robert Blecker,
Fundamentals of US Foreign Trade
Policy, Economics, Politics, Laws and Issues (1996) 3-24, 55-104 (review of
economic basics of trade), 217-237 (US trade policy and LDCs);
Dan Tarullo,
“Beyond Normalcy in the regulation of international trade,” Harvard Law Review
January 1987 p. 546-628; Finger and
Winters, “What Can the WTO Do for Developing Countries,” with comment by
Alan Hirsch, at 365-400 in Anne Krueger, ed., The WTO as an International
Organization (1998).
B. The National policy program:
Efficiency, Getting Prices Right and integration into the world economy
Required:
DM: Tom Hewitt, Hazel Johnson and Dave Weld, “Neo Liberal Theory” Industrialization and Development
(1992)
Cypher and Dietz, Chapter 17, “International Institutional linkages: The IMF, the World Bank and Foreign Aid” pp 496-532
Background Meier Leading
issues in economic development (2000)(6th
Edition), 453-511 (trade and development)
October
29, 2008
C. The Legal element in National
Neoliberal Policy Making: Formalization, Standardization, Privatization and
Transparency
Required:
David
Kennedy, “The ‘Rule of
Law,’ Political Choices and Development Common Sense, in Trubek and
Alvaro
DM: David Kennedy, “Some Caution About Property
Rights as a Recipe for Development” (DRAFT 2008) for publication in Kennedy and
Stiglitz, eds., New Policy Approaches to Chinese Economic Development,
(forthcoming 2009)
[to
be distributed in class]
DM: Hernando de Soto, The Mystery of Capital: Why Capitalism
Triumphs in the West and Fails Everywhere Else, (
Chapters 3 “The Mystery of Capital” and Chapter
6, “The Mystery of Legal Failure”
Background: Duncan Kennedy, “Mainstream Law and
Economics from the Point of View of Critical Legal Studies,” pages 465-474
(1998); Duncan Kennedy, “Hale and
Foucault” in Sexy Dressing (1993); Katharina Pistor, “The
Standardization of Law and Its Effects on Developing Economies” 50 American
Journal of Comparative Law (2002) 97-130
PART
V: AFTER NEO-LIBERALISM: A CONSENSUS CHASTENED
November
5, 2008
A.
second thoughts about market shock and structural adjustment: the emergence of
critique
Required:
DM: Joseph Stiglitz, “Whither Reform? Ten Years of
Transition” (World Bank Annual Bank Conference on Development Economics:
Keynote Address, April 28-30, 1999) (Stiglitz was Chief Economist for the Bank
in the late 1990s)
Recommended:
DM: Carlos Heredia and Mary Purcell, “Structural Adjustment and the
Polarization of Mexican Society” in Mander and
Goldsmith, eds. The Case Against the Global Economy
and For a Turn Toward the Local (1996) 273-284
DM: Walden
Background: Kerry
Rittich, Recharacterizing Restructuring – Law, Distribution and Gender in Market Reform (Kluwer Law International,
2002), Chapter 5 “Recharacterizing Restructuring” pp.
153-169 and Chapter 6 “The Gender of Restructuring” pp. 173-234.
Linda Lim, “Women’s Work in Export Factories: The Politics of a
Cause,” in Persistent Inequalities, Irene Tinker, ed. (1990) pp 101-119
Ruth Pearson, “Nimble Fingers Revisited:
Reflections on Women and Third World Industrialization in the late Twentieth
Century,” in Feminist Visions of Development, Gender Analysis and Policy,
edited by Cecile Jackson and Ruth Pearson, (1998) pp 171-186
Jan Kregel, Egon Matzner, Gernot
Grabher, The Market Shock: An Agenda for the
Economic and Social Reconstruction of Central and Eastern Europe (Austrian Academy of Sciences,
1992); John Nellis,
“The World Bank, Privatization and Enterprise Reform in Transitional Economies:
A Retrospective Analysis.” World Bank
Discussion Paper (2002); Douglas North, Institutional Change and Economic Performance (1990); Amy Chua, “Globalization and Ethnic
Hatred” in The World on Fire: How Exporting Free Market Democracy Breeds
Ethnic Hatred and Global Instability, (Doubleday, 2004); Amy Chua, “The Paradox of Free Market
Democracy: Rethinking Development Policy,” 41 Harvard International Law Journal
2 Spring 2000, pages 287-379; Amy Chua, “Markets, Democracy and Ethnicity: Toward a New
Paradigm for Law and Development,” 108 Yale Law Journal 1 (1998).
B. The
“new Development Economics:” Market failures, path dependence and institutions
Required: Meier: Chapter 7,”Modern Growth Theory” pp. 95-117 amd Chapter 8, “The New Development Economics” pp 118-128
DM: Dani Rodrik, “The New Development Economics: We
Shall Experiment, But How Shall We Learn?” Revised draft, May 21, 2008
DM: Dani Rodrik,
“Rethinking
Growth policies in the Developing World
(manuscript 2004)
DM: Joseph
Stiglitz, “The Post
Background: Cypher and Dietz, Chapter 8 “Endogenous Growth Theories and New Strategies for
Development” pp. 223-247, and Chapter 13, “Technology and Development” pp.
401-426
DM: The
DM: Draft Outcome of the international Conference on Financing for
Development:
Dani Rodrik, The
New Global Economy and Developing Countries: Making Openness Work, (1999);
Arndt, 89-113 (“social objectives”);
Dani Rodrik, Industrial Policy for the Twenty-First Century, September 2004.
Joseph Stiglitz, Globalization and its Discontents,
(2002), Chapter 9, “The Way Ahead,” pp 214-252
Joseph Stiglitz, “Dealing with Debt: How to Reform
the Global Financial System” 25 Harvard International Review 54 (2003)
Joseph
Stiglitz and Andrew Charlton, Fair Trade for All: How Trade
Can Promote Development (
November
12 2008
C. “Social Development,” Human Rights
and democracy as strategies of development
Required: DM: Amartya Sen, Development
as Freedom (1999), Chapter 1 “The Perspective of Freedom” pp. 13-34 &
Chapter 5 “
Kerry Rittich,
“Second Generation Reforms and the Incorporation of the Social” in David
Trubek and Alvaro
Recommended: MEIER, Chapter 9, “Culture, Social
Capital, Institutions” pp. 129 – 143
Background: Cypher and Dietz, Chapter 12, “Population, Education and Human Capital” pp.
351-376 and pp. 522-587 (foreign aid)
Joseph Stiglitz, “Participation and Development:
Perspectives from The Comprehensive Development Paradigm,” 6:2 Review of
Development Economics 163-182 (2002) (“investigating the relationship
between economic and social development”)
The Arab Human Development Report
2002, Creating Opportunities for Future Generations,
(Sponsored by the Regional Bureau for Arab States, UNDP) Chapter 1 “Human
Development: Definition, Concept and Larger Context” pp.15-23, Chapter 2 “The
State of Human Development in the Arab Region” pp 25-33, Chapter 6 “Using
Human Capabilities: Recapturing Economic
Growth and Reducing Human Poverty” pp 85-103 & Chapter 7 “Liberating Human
Capabilities: Governance, Human Development and the Arab World” pp 105-120.
November 19. 2008
D. poverty and the global economy –
are there local, national or international strategies to the left of stiglitz
and sen?
Required: Raphael Kaplinsky, Globalization, Poverty and Inequality (Polity Press 2005)
Chapter 3, pp.53-85 “Getting it Right: Generating and Appropriating Rents”
Chapter 4, pp. 86-121 “Managing Innovation and Connecting to Final Markets”
Chapter
5 pp. 122-159 “The
Global Dispersion of Production – Three Key Sectors”
Chapter 6, 153-195 “How Does It All Add Up? Caught Between a Rock and a
Hard Place”
Chapter 8, pp. 232-257 “So What?”
DM: Nancy
Birdsall, Dani Rodrik, and Arvind Subramanian,
“How to Help Poor Countries” 84 Foreign Affairs 4, 136-152 (2005)
DM: Roberto
Unger, What Should
The Left Propose? (2005)
pp. 64 – 82 (“The Developing Countries: Growth with Inclusion”)
and pp. 133-148 (“Globalization and What To Do About
It”)
DM: Arturo Escobar, Chapter 6 “Conclusion:
Imagining a Post Development Era” in Encountering Development: The Making
and Unmaking of the
DM: Gustavo Esteva,
“Regenerating People’s Space” 1987 Alternatives XII, 125-152
Background: MEIER: Chapter 10, “The Impact of Globalization” pp. 144-160.
Meier, Chapter 11, “Global Trade Issues” pp. 161-179
Cypher and Dietz, Chapter 14, “Transnational Corporations and Economic
Development” pp. 403-439.
Rahnema and Bawtree, eds. The
Post Development Reader, (1997), perhaps particularly at 30-39, Hassan Zaoual, “The Economy and Symbolic Sites of Africa.”; particularly
Escobar “The Making and the Unmaking of the Third World through Development” at
85-93, Ivan Illich,
“Development as Planned Poverty,” at 94-102; Susan George, “How the Poor
Develop the Rich” 207-213;
Frederique Apffel-Marglin ed., with PRATEC, The Spirit of
Regeneration: Andean Culture Confronting Western Notions of Development
(1998); Gustavo Esteva and Madhu
Suri Prakesh, Grassroots
Postmodernism: Remaking the Soil of Cultures (1998); Mander and Goldsmith, eds., The Case Against the Global Economy
and For a Turn Toward the Local (1996) 393-514. (Various authors on
self-reliant community based development strategies),
Roberto Unger, Democracy Realized: The
Progressive Alternative (1998)
Meier,
Leading Issues in Economic Development (2000) 382-399
(impact of development on income distribution).
December
3, 2008
the
legal elements in post-washington consensus programs
Required: DM: David Kennedy, “Laws and Developments” in Law and Development: Facing Complexity in the 21st
Century, (Cavendish Publishing, 2003) pp. 17-26.
David
Kennedy, “The ‘Rule of
Law,’ Political Choices and Development Common Sense, in Trubek and
Karl Polanyi, The Great Transformation,
Chapter 7 “Speenhamland
1795”, Chapter 8 “Antecedents and Consequences” Chapter 9 “Pauperism and Utopia” and Chapter 10 “Political Economy and the
Discovery of Society”. In the 2001
Beacon Press edition, this is pp 81-135.
DM: David
Kennedy, “Law and Development Economics: Toward a New Alliance of the Heterogenous,” [DRAFT] forthcoming 2009 in Stiglitz and
Kennedy, New Development Policies and Chinese Economic Development. to be distributed in class
Recommended: David
Trubek, “The ‘Rule of Law’ in
Development Assistance: Past, Present, and Future,” in Trubek and
Background: John
Braithwaite, Global
Business Regulation (2000), pages 3-36.
Reuven Avi-Yonah, “Globalization, Tax Competition and the Fiscal Crisis of the
Welfare State,” 113 Harvard Law Review 7, 1573 (2000) (Excerpts)
John K. M. Ohnesorge, “The Rule of Law, Economic Development and the Developmental States of Northeast Asia,” in Law and Development in East and Southeast Asia (Christoph Antons, ed., 2003) pp. 91-127.
Frank Upham,
“Mythmaking in the Rule of Law Orthodoxy,” Carnegie Endowment Working Paper,
Rule of Law Series, Democracy and the Rule of Law Project. Number
30, September 2002.
James Gathii,
“Retelling Good Governance Narratives on Africa’s Economic and Political Predicaments: Continuities and
Discontinuities in Legal Outcomes Between Markets and States” 45 Villanova Law
Review 5 (2000) 971; David
Kennedy, “The International Anti-Corruption
Campaign,” Connecticut Journal of International Law (1999); Francis Botchway, “Good
Governance: The Old, the New, the Principle and the Elements” XII Florida
Journal of International Law 2 (Spring 2001) 159; James Gathii,
“Corruption and Donor Reforms: Expanding the Promises and Possibilities of the
Rule of Law as an Anti-Corruption Strategy in Kenya” 14 Connecticut Journal of
International Law 2 (Fall 1999) 407; John Ohnesorge, Asia’s Legal Systems in the Wake of the
Financial Crisis: Can the Rule of Law Carry any of the Weight? Manuscript, for UNRISD conference in Bangkok,
May 2000; John Ohnesorge, Understanding Chinese Legal and Business Norms:
A Comment on Professor Janet Tai Landa’s “Coasean Foundations of a Unified Theory of Western and
Chinese Contractual Practices and Economic Organizations.” Draft of October 30,
1999