As recently as 1990 policymakers and academics believed widely that all that was needed for dramatic increases in prosperity in transitional economies was to roll back the state. The arguments in this book present an articulate antidote to that assertion: While the state must withdraw from many activities involving direct production and exchange, it must provide good laws and enforce them for economies to prosper. In one chapter, Robert Summers brilliantly exposes the complexity of this requirement,listing eighteen minimum conditions for the creation of the rule of law. Other chapters describe the benefits of good commercial law on economic growth, the political foundations of American commercial law, how poor governance led to the Asian financial crisis, the institutional requirements for environmental markets, and constitutional structures that lead to efficient government. The contributors, renowned experts in their fields on the complex institutional...

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