Social and Behavioral Sciences Commons^™

The Politics Of Legal Reform, Florencio López De Silanes

Florencio López de Silanes

As a result of the emerging market crises of the last decade and a large body of academic research on the influence of investor protection in the development of capital markets and economic growth, there is a growing consensus that reforming the legal infrastructure supporting business should be an important component of reforms in many developing countries. But the consensus is unwieldy, as there are still many forces against reform and little agreement about what constitutesfeasible legal reforms. This paper has two parts. In the first, we identify the forces for and against legal reform and review the role these …