{"title":"Economics of Regulation and the Rule of Law in Korea","authors":"Y. Ahn","doi":"10.2139/ssrn.2609826","DOIUrl":"https://doi.org/10.2139/ssrn.2609826","url":null,"abstract":"The market economy has three pillars: voluntary exchange, purposive rules of the game, and the rule of law. According to classical works by Smith, Rousseau, Hayek and Friedman followed by empirical research by various contemporary economists, the common law system is more conducive to the rule of law than civil law. The rule of law is notoriously weak in Korea partly because Korea follows the civil law tradition. The purpose of this paper is to suggest practical measures to enhance the rule of law in Korea as a precondition for speedier economic growth in the future. I rely on logical arguments and previous academic works in showing why the common law system is preferable. The main point is that the common law system is more friendly to rule abiders and subsequently less costly to the people and the government. In a word, common law is more effective and efficient in establishing the rule of law, ceteris paribus.","PeriodicalId":284892,"journal":{"name":"Political Institutions: Constitutions eJournal","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-05-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128253876","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Do Markets Reward Constitutional Reform? Lessons from America’s State Debt Crisis","authors":"B. Beach","doi":"10.2139/ssrn.2477525","DOIUrl":"https://doi.org/10.2139/ssrn.2477525","url":null,"abstract":"America's 1840s state debt crisis presents a unique opportunity to identify whether the adoption of self-imposed fiscal constraints lowers sovereign borrowing costs. After nine states defaulted, 20 states adopted constitutional provisions that constrained the legislature’s ability to issue debt. The process of reform generates variation in the timing of these reforms. Exploiting this variation, I find that only states with tarnished reputations (i.e. states that defaulted during the crisis) were rewarded with lower borrowing costs following the adoption of these reforms. This suggests that institutional constraints can help sovereigns reestablish their commitment to debt repayment.","PeriodicalId":284892,"journal":{"name":"Political Institutions: Constitutions eJournal","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-05-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114673178","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"From 'The Lowest State of Poverty and Barbarism' to the Opulent Commercial Society: Adam Smith's Theory of Violence and the Political Economics of Development","authors":"Barry R. Weingast","doi":"10.2139/ssrn.2606745","DOIUrl":"https://doi.org/10.2139/ssrn.2606745","url":null,"abstract":"What accounts for the differences in the “wealth of nations”; that is, the differing levels of opulence across countries? Adam Smith’s answer is complex and has yet to be fully understood. Moreover, Smith's argument is as relevant today as it was in his time. On the economic side, his answer is well-known: the division of labor, the role of capital accumulation, and the absence laws and regulations that encumber competition and markets. Yet Smith’s views about the failure to develop were not limited to economic issues, instead turning equally to politics and law. Violence is central to Smith's approach to development, and Smith scholars have systematically under-appreciated the importance of violence in his approach to economic and political development. In the face of episodic violence, individuals have little incentives to be industrious, to save, or to invest. Smith argued that development required three mutually reinforcing elements – liberty, commerce, and security. If commerce represents the development of markets, liberty and security provided the political, legal, and military infrastructure necessary to sustain markets in a potentially hostile environment.","PeriodicalId":284892,"journal":{"name":"Political Institutions: Constitutions eJournal","volume":"330 5","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132341252","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Thanking the Greeks. The Crisis of the Rule of Law in EU Enlargement Regulation","authors":"Elena Basheska, D. Kochenov","doi":"10.1163/18763332-03903006","DOIUrl":"https://doi.org/10.1163/18763332-03903006","url":null,"abstract":"This paper showcases the weaknesses of EU enlargement law and demonstrates how one Member State is notable for abusing this weakness, harming the candidate countries, the EU and the institutions alike, stripping EU position of predictability and undermining EU Commission’s efforts, thus severely decapacitating the key procedural rule of law component of EU enlargement regulation, turning it into a randomised political game and ignoring any long-term goals of stability, prosperity and peace the processes is to stand for. Following a walk through Greece’s engagement throughout a number of enlargement rounds, the paper concludes that the duty of loyalty, presumably able to discipline Member States undermining the common effort, should find a new meaning in the EU enlargement context.","PeriodicalId":284892,"journal":{"name":"Political Institutions: Constitutions eJournal","volume":"58 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127477279","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"L’Histoire se répète: Why the Liberalization of the EU Vineyard Planting Rights Regime May Require Another French Revolution (And Why the US and French Constitutions May Have Looked Very Different Without Weak Planting Rights Enforcement)","authors":"Giulia Meloni, J. Swinnen","doi":"10.2139/ssrn.2610592","DOIUrl":"https://doi.org/10.2139/ssrn.2610592","url":null,"abstract":"In 2008, the EU voted to liberalize its system of planting rights which has strictly regulated vine plantings in the EU. However, after an intense lobbying campaign the liberalization of the planting right system was overturned in 2013 and new regulations created an even more restrictive system. European wine associations complained about the detrimental effects of the new regulations. There is a precedent in history. In 1726, the French political philosopher and landowner Montesquieu complained to the French King about the prohibition on planting new vines. Montesquieu was not successful in his demands to remove the planting rights. Old and recent history suggests that political forces against liberalization of planting rights are very strong. Only the French Revolution in 1789 led to a fundamental liberalization of planting rights. The “liberal period” of the 19th century was sustained by the combination of the French Revolution’s liberal ideology, the thirst for wine of Napoleon’s armies and diseases that wiped out most of the French vineyards. That said, in the past and the present, enforcement of planting rights is a major problem. In fact,despite the official restrictions, Montesquieu managed to plant his vines, allowing him to become a successful wine producer and merchant and to travel and to spend time thinking, discussing and ultimately writing up his ideas which influenced much of the Western world’s constitutions.","PeriodicalId":284892,"journal":{"name":"Political Institutions: Constitutions eJournal","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128134389","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Constitution on Ice","authors":"Thorvaldur Gylfason","doi":"10.2139/ssrn.2529896","DOIUrl":"https://doi.org/10.2139/ssrn.2529896","url":null,"abstract":"This paper reports recent events in Iceland where the political agents of oligarchs didn‘t even bother to try to influence, let alone contest, a national referendum on a new constitution because, if they didn‘t like the result, they would simply find ways to nullify the outcome ex post. The paper reviews and explains the making of Iceland’s crowd-sourced constitution bill from 2009 to 2014, and also offers an explanation as to why the bill failed to be passed by Parliament, addressing various criticisms leveled against the bill along the way. It needs to be emphasized that these criticisms, whether well founded or not (and they are not), are irrelevant because Parliament held a national referendum on 20 October 2012 in which the bill and its key individual provisions were accepted by an overwhelming majority of the voters. A democratic nation cannot under any circumstances permit the outcome of national elections, let alone a constitutional referendum, to be fixed ex post, but this is what the Icelandic Parliament is at present trying to do, flirting with a farewell to democracy.","PeriodicalId":284892,"journal":{"name":"Political Institutions: Constitutions eJournal","volume":"62 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126927587","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Crimean Secession: A Comment on Chesterman's 'Crimean War 2.0: Ukraine and International Law'","authors":"Robert W. McGee","doi":"10.2139/SSRN.2422035","DOIUrl":"https://doi.org/10.2139/SSRN.2422035","url":null,"abstract":"This article discusses the right of secession in general, the recent Crimean secession in particular, and Simon Chesterman’s recent article on the Crimean secession.","PeriodicalId":284892,"journal":{"name":"Political Institutions: Constitutions eJournal","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-04-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133911299","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Rationality, Legitimacy, & The Law","authors":"Daniel Z. Epstein","doi":"10.2139/ssrn.1527590","DOIUrl":"https://doi.org/10.2139/ssrn.1527590","url":null,"abstract":"American legal realism was committed to examining legal reasoning in terms of the actual experiences of judges. Because the realist project sought to use social science tools to examine human nature, the contemporary rise of cognitive neuroscience provides an occasion for re-examining legal realism’s foundational critique of the law. Realism’s attempt to examine “the actual facts of judicial behavior” and to pursue a “scientific description and prediction of judicial behavior” appears to be a suitable vehicle for considering the relevance of cognitive neuroscience for legal theory. Cognitive neuroscience has provided convincing evidence for rejecting the traditional bifurcation between “reason” and “emotion”. Moreover, cognitive neuroscience has revealed key heuristic biases in human reasoning. As such, the dominant form of legal reasoning might rely on a flawed conception of rationality. And this flawed understanding may have implications for the legitimacy of judicial decisions. Rule-based reasoning has informed the image of rational adjudication that undergirds our conception of the rule of law. But rule- based reasoning does not appear to be a complete description of how judges decide cases; and, furthermore, the received view of legal rationality does not appear capable of accounting for alternative theories of adjudication.","PeriodicalId":284892,"journal":{"name":"Political Institutions: Constitutions eJournal","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123930657","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Financial Crisis as a Catalyst of Legal Reforms: The Case of Asia","authors":"M. Kawai, Henrik Schmiegelow","doi":"10.2139/ssrn.2359363","DOIUrl":"https://doi.org/10.2139/ssrn.2359363","url":null,"abstract":"This paper discusses how financial crises in emerging Asia and Japan worked as catalysts for legal reforms. The responses of six Asian countries with different legal histories to financial crises that posed similar challenges are of both legal and economic interest. We first provide a theoretical framework that focuses on law and economics. We then review the basic approaches adopted by the Asian countries affected by financial crises in 1997–1998 to bank and corporate restructuring and to legal and other reforms. Finally we examine indicators that measure the quality of legal institutions (regulatory quality, rule of law, and control of corruption) for the six countries to determine whether these indicators show improvement over time. We find that all six countries pursued significant legal and judicial reforms, but the indicators exhibit mixed results : the Republic of Korea shows clear improvements in all aspects, while the Philippines exhibits clear deterioration and Indonesia indicates a steep decline followed by remarkable improvement. We argue that reforms of the economic laws alone cannot improve the quality of entire legal and judicial systems of countries. What matters is the enforcement of substantive law by procedural law, the efficiency of the justice system, and other political and social factors. In the case of Indonesia, Malaysia, and the Philippines, the colonial “transplant effect†of Western legal systems may have made the implementation of laws a significant challenge. In Thailand, implementation was affected by the “yellow shirts†(anti-Thaksin) versus “red shirts†(pro-Thaksin) conflict. Long time lags, perhaps of several decades, may be needed to observe how de jure changes to substantive laws lead to de facto improvements of legal institutions.","PeriodicalId":284892,"journal":{"name":"Political Institutions: Constitutions eJournal","volume":"101 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-11-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117278900","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Institutions and Culture: The Story of the EU and the Fate of Europe's Integration Project","authors":"Qerim Qerimi, B. Sergi","doi":"10.5771/1435-2869-2013-2-131","DOIUrl":"https://doi.org/10.5771/1435-2869-2013-2-131","url":null,"abstract":"‘The great European dream was to diminish militant nationalism’ (Antony Beevor). The future remains open, and some degree of nationalism may be constantly present, but one thing can be expressed with confidence: the European Union has successfully averted conflict within the ‘club’ and has been a clearly powerful incentive for reconciliation between former enemies as well as bringing democracy in countries formerly ruled by dictatorships. The present crisis apart, the European project remains incomparable. Indeed, this presents an inescapable imperative to any notion of resistance towards the completion of the European integration project. This article focuses on the integration project of the Old Continent’s south-eastern corner; more specifically, it concerns how a culture-based or incited-conflict can shape a specific cultural setting and, in return, how that culture can be transformed into one of co-operation. The inquiry is placed in the context of the relationship with, and impact of, the EU, which can serve both as example and promoter of such a culture.","PeriodicalId":284892,"journal":{"name":"Political Institutions: Constitutions eJournal","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129392775","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}