Advertisement

Assessing the Convergence Thesis of Legal Reforms in Emerging Market Economies

  • Linda Elmose

This chapter argues that the post-Cold War era global phenomenon of proliferating transitional market economies are characterized by institutional diversity, rather than by neo-liberal convergence. The contention of diversity presents a direct challenge to the apparent ambition of the international community to engineer institutionally a neo-liberal economic world order, as reflected in the Good Governance development model orthodoxy. Two principal claims are made to argue why development scholars and practitioners should remain sceptical that institutional convergence is occurring or is likely to occur around the prescribed governance reforms. First, empirical evidence cannot confirm the view that these neo-liberal institutions are being progressively implemented by the fastest-growing emerging market economies. Second, and more theoretically, a set of faulty assumptions surrounding the neo-liberal conceptualization of state power and the state’s role in institutional change can be linked to a paradox, or unintended consequence, which undermines the neo-liberal ambitions for institutional convergence.

Keywords

Market Economy Good Governance Governance Institution Legal Reform Emerge Market Economy 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. R. Bates (1988), ‘Contra Contrarjanism: Some Reflections on the New Institutionalism’, Politics and Society, 18:387–401.CrossRefGoogle Scholar
  2. T. Canova (2000), ‘The Disorders of Unrestricted Capital Mobility and the Limits of the Orthodox Imagination: A Critique’, Journal of Global Trade, 9, 1, 219–231.Google Scholar
  3. K. Chaudry (1993), ‘The Myths of the Market and the Common History of Late Developers’, Politics and Society, 21, 3, 1–20.Google Scholar
  4. R. Easterlin (1996), Growth Triumphant (Ann Arbor, Michigan: University of Michigan Press).Google Scholar
  5. EBRD (1994), Transition Report (London: European Bank for Reconstruction and Development).Google Scholar
  6. C. Gray (1991), ‘Legal Process and Economic Development’, World Development, 19, 7, 763–778.CrossRefGoogle Scholar
  7. P. Hall and P. Taylor (1996), ‘Political Science and the Three Institutionalisms’, Political Studies, 64, 936–957.CrossRefGoogle Scholar
  8. IMF (2003), World Economic and Financial Surveys; April (Washington, DC: International Monetary Fund).Google Scholar
  9. D. Kaufmann and A. Kraay (2002), ‘Growth without Governance’, Economica, 3, 1, 169–229.Google Scholar
  10. D. Kaufmann, A. Kraay, and P. Zoido-Lobaton (1999), Governance Matters: World Bank Policy Working Paper No. 2196 (Washington, DC: World Bank).Google Scholar
  11. D. Kaufmann, A. Kraay, and M. Mastruzzi (2003), Governance Matters III: Governance Indicators for 1996–2002: World Bank Policy Research Working Paper No.3106 (Washington, DC: World Bank).Google Scholar
  12. J. Keynes (1924), ‘The Theory of Money and of the Foreign Exchanges’, in J.M. Keynes, A Tract of Monetary Reform: The Collected Writings of John Maynard Keynes, Volume IV (London: Macmillan).Google Scholar
  13. S. Knack and P. Keefer (1997a), ‘Institutions and the Convergence Hypothesis: The Cross-National Evidence’, Public Choice, 87, 207–228.CrossRefGoogle Scholar
  14. S. Knack and P. Keefer (1997b), ‘Why Don’t Poor Countries Catch Up? A Cross-National Test of an Institutional Explanation’, Economic Inquiry, 35, 590–602.CrossRefGoogle Scholar
  15. S. Krasner (ed.) (1983), International Regimes (Ithaca, New York: Cornell University Press).Google Scholar
  16. J. Mahon (2000), ‘Globalization and the Exchange of Institutions for Resources’, Paper presented at the Congress of the International Political Science Association, Quebec, 1–16 August.Google Scholar
  17. S. Mukand and D. Rodrik (July 2002), ‘In Search of the Holy Grail: Policy Convergence, Experimentation, and Economic Performance’. Unpublished paper.Google Scholar
  18. S. Mukand and D. Rodrik (2005), ‘In Search of the Holy Grail: Policy Convergence, Experimentation, and Economic Performance’, American Economic Review, 95, 1, 374–383.CrossRefGoogle Scholar
  19. P. McAuslan (1996), ‘Law, Governance and the Development of the Market: Practical Problems and Possible Solutions’, in J. Faundez (ed.), Good Government and Law: Legal and Institutional Reform in Developing Countries (London: Macmillan).Google Scholar
  20. M. Naim (2000), ‘Washington Consensus or Washington Confusion?’, Foreign Policy, 118, 86–104.CrossRefGoogle Scholar
  21. D. North (1990), Institutions, Institutional Change, and Economic Performance (Cambridge: Cambridge University Press).Google Scholar
  22. OECD (2001), Governance in the 21st Century: Power in the Global Knowledge Economy and Society (Paris: Organiztion for Economic Co-operation and Development).Google Scholar
  23. S. Pejovitch (1996), ‘The Market for Institutions vs. The Strong Hand of the State’, in B. Dallago and L. Mittone (eds.), Economic Institutions, Markets and Competition (Cheltenham: Edward Elgar).Google Scholar
  24. J. -P. Platteau (1994), ‘Behind the Market Stage Where Real Societies Exist; Part 2: The Role of Moral Norms’, Journal of Development Studies, 30, 3, 753–817.CrossRefGoogle Scholar
  25. J. Stiglitz (2000), ‘The Insider: What I Learned at the World Economic Crisis’, The New Republic, 17 April.Google Scholar
  26. D. Trubek and M. Gallanter (1974), ‘Scholars in Self-Estrangement: Some Reflections on the Crisis in Law and Development Studies in the United States’, Wisconsin Law Review, 1062, 1070–1084.Google Scholar
  27. UNDP (2002), Deepening Democracy in a Fragmented World: Human Development Report 2002 (New York: United Nations Development Programme).Google Scholar
  28. T. Waelde and J. Gunderson (1994), ‘Legislative Reform in Transnational Economies: Western Transplants–A Short-Cut to Social Market Economy Status?’ International and Comparative Law Quarterly, 43, 2, 347–378.CrossRefGoogle Scholar
  29. J. Wedel (1998), Collision and Collusion: The Strange Case of Western Aid to Eastern Europe 1989–1998 (New York: St Martin’s Press).Google Scholar
  30. J. Williamson (1990), Latin American Adjustment: How Much has Happened? (Washington, DC: Institute for International Economics).Google Scholar
  31. World Bank (1992), World Development Report: Governance and Development (New York: Oxford University Press).Google Scholar
  32. World Bank (1994), Adjustment in Africa: Reforms, Results and the Road Ahead (New York: Oxford University Press).Google Scholar
  33. World Bank (1997), World Development Report: The State in a Changing World (New York: Oxford University Press).Google Scholar
  34. World Bank (1998), Assessing Aid: What Works, What Doesn’t and Why (New York: Oxford University Press).Google Scholar
  35. WTO (2004), Joint WTO/OECD Report on Trade-Related Technical Assistance and Capacity Building (Geneva: World Trade Organization).Google Scholar

Copyright information

© Springer 2007

Authors and Affiliations

  • Linda Elmose
    • 1
  1. 1.Department of Political ScienceSimon Fraser UniversityCanada

Personalised recommendations