Executive Summary

Most nations in the world have some sort of market economy, but very few enjoy fast or equitable growth. There is a growing understanding that clear and consistent rules, which create a predictable environment for making investment decisions, are important elements of market equity and efficiency. In Vietnam, for instance, the Enterprise Law, which standardized business registration procedures, directly resulted in 2,000,000 new jobs, thousands of new firms, and the unprecedented mobilization of Vietnam’s domestic savings. Legal rules, whether defining property rights, contract remedies, or the government’s regulation of the marketplace, have substantial economic impacts. To secure the benefits of well-designed legal rules, and to avoid the costs of poorly conceived legal rules, public policymakers, government officials, and legal instructors must develop the analytical tools necessary for thinking of law within an economic framework.