The Role of Law
- Elgar Law and Entrepreneurship series
Edited by Megan M. Carpenter
Chapter 10: The Rule of Law, Privatization, and the Promise of Transborder Licensing
Andrea L. Johnson* Rules don’t ensure sustainable economic development; people do. I. INTRODUCTION The rule of law in the international context is defined using different terminology, but has the same basic components: a set of rules by which persons have equal access to a legal system that is transparent, has an independent decision-making body, and where the rules are applied in a nondiscriminatory fashion.1 Historically, a government’s failure to adhere to the rule of law leads to a lack of trust and predictability necessary to attract foreign investment. In the 1990s, privatization of state-owned assets and enterprises in developing countries became a plausible way to stabilize financial markets, spur foreign investment, retire debt, and improve local economies.2 The theory was that foreign investment in sectors such as telecommunications stimulated economic development in new and existing * The author would like to acknowledge Tara Pelan, Esq. for her valuable contributions to this chapter. 1 See Simon Chesterman, An International Rule of Law?, 56 Am. J. Comp. L. 331 (2008) (hereinafter “Chesterman”). The World Justice Project (WJP) identifies four universal principals for the rule of law: 1) government and its officials are accountable under the law; 2) the laws are clear, publicized, stable and fair, and protect fundamental rights, including the security of persons and property; 3) process by which the laws are enacted, administered, and enforced is accessible, fair, and efficient; and 4) access to justice is provided by competent, independent, ethical adjudicators, attorneys, and judicial officers. M. Agrast, J. Botero, & A....
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