Why the rule of law matters for human flourishing April 17, 2017Posted by OromianEconomist in Uncategorized.
Tags: Ecomonomics, Freedom and reason, Legal system, Rule of Law
“Rule of law is essential if you want to have a functioning economy,” says Samuel Gregg in the PovertyCure series. “You cannot have a functioning economy without secure property rights. You cannot have a functioning economy unless contracts are enforced. You cannot have a functioning economy if government officials can act in an arbitrary fashion.”
Indeed, as the following excerpt explains, a society can have the right people with the right skills and the right tangible goods and materials, but if individuals lack things like property rights, fair rules, access to courts, and access to markets, economic activity will fizzle as social frustration climbs.
“Try and imagine a football match without rules,” says economist Hernando De Soto. “…The rules are crucial to get that game going. But everyone knows how to drive a ball. Everybody knows how to buy and sell, so there is plenty of entrepreneurship in the world. The problem is the rules. In two-thirds of the world, there isn’t yet the rule of law.”