Hurdles and Hazards to a Thriving Interaction between Colombian Law and Economics

Abstract

This article discusses the main hurdles and hazards that the development of law and economics in Colombia faces. For the sake of an in-depth analysis in a not too long article, the discussion is restricted to commercial contract law. The main hurdles mentioned here are: (1) structural hurdles - institutions or procedures that may be a stumbling block to the development of law and economics; (2) cultural hurdles - a bias among scholars, practitioners, judges, arbitrators, and legislators against law and economics; and (3) academic hurdles - lack of legal theories adapted to the nature and particularities of Colombian both economic development and legal system. If these hurdles are not surpassed, at least three hazards may occur. First, the law, in both theory and practice, may end up completely isolated from any economic analysis. Second, economics may end up as a discipline at the exclusive service of theoretical legal analysis, without any impact on practitioners, judges, arbitrators, legislators, and other legal actors. Third, legal methodology may end up at the exclusive service of economics or, even worse, of econometrics, with philosophical, moral, and judicial analyses reduced to negligible levels. This article’s view, however, is not so pessimistic to believe that the hurdles and hazards indicated above are either insurmountable or inevitable. The hurdles may retard but not completely block the development of law and economics in Colombia. Thus, if some recommendations are adopted, a negative outlook will be less likely than a positive scenario where law and economics thrive not only for the sake of these sciences but also for the benefit of scholars, practitioners, judges, arbitrators, legislators, and other legal actors.