On The Influence Of The Law And Development Movement On The Economy Of Developing Countries

For the majority of developing countries,economic development is still the main goal.How to achieve economic growth? The answer given by the new institutional economists is institution.Institution plays an important role in economic activities and Institutional change is the source of economic growth.The most important of all systems is law.The two practice movements,which took place in the developing countries in the 60 s and 90 s last century,with the goal of legal reform as a means to promote economic development,were known as the law and development movement.This paper introduces the conditions of the movement,the foundation of the theory,the enlightenment to the developing countries and the impact of the movement on economic growth from two aspects of the developing countries and individual developing countries.The paper also discusses the experience of China and the economic impact of the developing countries under the law and development movement.This article is divided into five parts:The first chapter is an introduction,and it briefly describes the research significance,research background and general research ideas.The second chapter discusses the relationship between institution and economic development based on the role of institution and institutional change in the view of new institutional economics.Systems can reduce transaction costs and uncertainty;and it can play an incentive role.Systems can create the cooperation condition and internalize the externalities.This paper discusses the relationship between economic growth and institutional change,and the path dependence problem which is easily formed in the institutional change.The third chapter introduces the old law and development movement.After World War II,in order to export the ideology,the United States led developed countries to promote the reform of the legal system and legal culture in developing countries under the guidance of the theory of modernization.In the end,the movement was defeated in the course of reflection because of its hidden hegemonism and the experts' unrealistic research methods.This chapter also introduces the rise of new law and development movement.After the cold war,the trend of globalization has been strengthened,the market economy has been widely carried out,and the human right movement is rising.Law and development movement came back under the background of the new development of dependency theory and the rise of new institutional economics.The movement is very different from the old law and development movement in terms of goals,theories and scales.The fourth chapter analyzes the influence of law and development movement on developing countries.First of all,the developing countries had carried out the law reform and to analyzed its impact of the overall economic growth from the perspective of promoting trade in 90 s.Second,it analyzes the influence of the law and development movement on the economic growth of Brazil.Third,it analyzes the influence of inappropriate law on the issue of Brazil's social equity and Nigeria's intellectual property rights in order to demonstrate the role of law in economic development.The fifth chapter discusses the experience of China under the wave of law and development movement.Since the Economic Reform and Open up,China has made brilliant achievements in economic construction and legal construction.Many experts have explained the economic growth of China with “the theory of government” and informal institution.But they did not deny the law.Law has played an irreplaceable role in China's economic growth.In the future,economic development should pay more attention to the role of law.The theory and practice of law and development movement proves that economic growth in developing countries can't do without the protection of the law.Only by constantly perfecting the legal system,the rule of law is firmly followed to promote economic development.