chapter  5
Law reform in developing countries G A RY GOOD PA STER
Pages 35

Development experts and international development donors, such as the World Bank and the Asian Development Bank, claim that ‘good governance’ and ‘rule of law’ are essential to economic growth and development (World Bank, 2001: 99-132).2 The theory is that the related institutions or practices of good governance and rule of law provide the stability, security and predictability thought necessary for sustainable economic growth and social advancement. Both are essential for free markets to operate; and free markets create economic incentives that lead to higher productivity, more employment, economic efficiency and social development.3