High-level Round Table on Trade and Development:Directions for the Twenty-first CenturyBangkok, 12 February 2000: Order, the Rule of Law and Moral Norms

Abstract

No market order can function satisfactorily – that is, at reasonably low transaction costs – if thereis not a right combination of rule of law and norms of generalized morality. The former requirementimplies that a viable state structure be established that is able to enforce in an impartial manner rules andlaws regarding respect of property, contract fulfilment, bank regulation, bankruptcies, control of abusiveexercise of market power, etc. This presupposes that the ruling elite, whether it has been democraticallyelected or not, has come to understand that its long-term interests depend on its being able to enlist thecooperation of dominated groups or classes on terms acceptable to them.