ABSTRACT
An area of economy-wide and systemic significance in which innovation and reform are needed in the post-Uruguay Round (UR) world is the legal system and, more broadly, the constitutions of some developing countries. The enormous diversity among developing countries in their institutional and economic development matters in realizing the gains from integrating with the global economy, at least in the short and medium runs. Many of the institutional changes needed in order to reap the maximum benefits from the post-UR environment for trade and investment are also needed for the success of economic liberalization and reforms under way in many developing countries. Laws governing the hiring, firing, job security, wages, fringe benefits, and so on of workers in many developing countries have been enacted in imitation of those that are on the statute books of much richer, developed countries. Flows of portfolio investment to some developing countries have increased significantly.
