Law and Development
Professor David Kennedy
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:
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)
Bulmer-Thomas, The Economic History of Latin
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
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
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
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
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
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
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
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
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
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
Kennedy, “The ‘Rule of
Law,’ Political Choices and Development Common Sense, in Trubek and
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
November 5, 2008
A. second thoughts about market shock and structural adjustment: the emergence of critique
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)
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
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)
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: Draft Outcome of the international Conference on Financing for
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)
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 “
“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.
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
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