Rule of Law

This article is an interesting summary of the thoughts about "rule of law" and how it relates to economic growth. The article seems infused with a skeptical outlook on the belief that a firm rule of law translates into economic growth. I am upset by this attitude for two reasons.

1. The author seems to have an attitude that, since the rule of law is not conclusively related to economic growth; it is not an important goal to pursue. The rule of law, while perhaps not immediately improving the economy, will lead to a better quality of life (assuming these laws protect human rights, what the article terms a “thick” rule of law). The author so wisely reminds us, “There are other arguments, too: the rule of law is desirable for its own sake—to improve human rights or to increase citizens' chances of justice against predatory governments” Obviously these rights are going to benefit a nation. If there is growth without these “other arguments”, it will unsustainable because of eventual political revolts.
2. This leads me to my second point: the author seems to be looking for a quick fix, a “panacea” as he says for developing economies. Just because on strategy is not a universal remedy does not mean it should be discredited. There is not going to be one perfect way to improve a countries economy. Each economy will need its own solution because all countries differ with regards to resources, cultures etc. The economy is intertwined with all these unique human and geographical attributes which need to be addressed independently. Constructive strategies can be learned from other countries but must be adapted. Rule of law, however, must be present for a lasting economy.

I realize that the author wasn’t saying that rule of law is a bad thing; just that it was not a perfect indicator for economic progress. However I think countries cannot obtain sustainable economic growth with out it. There is never going to be a perfect model for developmental economics but rule of law will certainly help.