General Theory of Law and Development

Although scholarship in law and development that explores the relationship between law and social and economic progress has evolved over the last four decades, this area of inquiry remains unfamiliar to many legal scholars, lawyers, and policy makers. Scholars have not yet been able to develop a theory that systematically explains the interrelationship between law and development, which would establish law and development as a robust and coherent academic field. This Article attempts to fill this gap by presenting a general theory that defines the disciplinary parameters of law and development, and explains the mechanisms by which law impacts development. This Article also demonstrates the validity of this general theory by applying it to an empirical case and also by explaining the development process of South Korea (1962– 1996) under its analytical framework. The concept of development, which has traditionally been associated with developing countries, may also be extended to address economic problems in developed countries today

General Theory of Law and Development

Although scholarship in law and development that explores the relationship between law and social and economic progress has evolved over the last four decades, this area of inquiry remains unfamiliar to many legal scholars, lawyers, and policy makers. Scholars have not yet been able to develop a theory that systematically explains the interrelationship between law and development, which would establish law and development as a robust and coherent academic field. This Article attempts to fill this gap by presenting a general theory that defines the disciplinary parameters of law and development, and explains the mechanisms by which law impacts development. This Article also demonstrates the validity of this general theory by applying it to an empirical case and also by explaining the development process of South Korea (1962– 1996) under its analytical framework. The concept of development, which has traditionally been associated with developing countries, may also be extended to address economic problems in developed countries today

Reconciling Corporate Interests with Broader Social Interests - Pursuit of Corporate Interests Beyond Shareholder Primacy

A seminal case in corporate law, Dodge v. Ford Motor Co., set the cardinal principle that corporations must serve the interests of shareholders rather than the interests of employees, customers, or the community. This principle, referred to as “shareholder primacy,” has been considered a tenet of the fiduciary duty owed by corporate directors. Scholars have disagreed on the current legal status of shareholder primacy. This Article examines the controversy in light of the current state legislation and case law. Regardless of its current legal status, shareholder primacy has influenced corporate behavior and encouraged short-term profit-seeking behavior with significant social ramifications. Corporations have been criticized for undermining the interests of employees, customers, and the community in the name of profit maximization. This Article argues that corporate interests and broader social interests, such as benefits to consumers and employees, are not mutually exclusive and can be reconciled by allowing corporate managers and majority shareholders to define corporate interests more broadly, beyond the narrow confines of shareholder primacy

Law and Economic Development in the United States: Toward a New Paradigm

Economic development is the term that has been associated with less developed countries in the Third World (“developing countries”), not the economically advanced countries (“developed countries”), such as the Untied States. However, the changing economic conditions in recent decades, such as the widening income gaps among individual citizens and regions within developed countries, stagnant economic growth deepening economic polarization, and an institutional incapacity to deal with these issues, render the concept of economic development relevant to the assessment of the economic problems in developed countries. In the United States, these economic problems caused a significant political consequence such as the unexpected outcome of the presidential election in 2016. This Article examines the applicability of the legal and institutional approaches, which were originally adopted to stimulate economic development in successful developing countries, to the economic problems in the United States. The Article also examines the relevance of the right to development (RTD) and discusses how the RTD could be recognized and applied in the United States context to facilitate the suggested legal and institutional approaches

National Security as a Means to a Commercial End: Call for a New Approach

While corporations do not enjoy unfettered freedom—they are constrained by legal, political, and social requirements and expectations—governments must have legitimate grounds when they compel corporations to act. After investigating the nationwide semiconductor shortage, the U.S. Secretary of Commerce warned that the government might invoke national security to compel semiconductor producers to disclose sensitive business information. The government has also invoked national security to justify extensive tariffs imposed on imported steel and aluminum products, leading to a major trade dispute. Years of neoliberal policy have created a perceived (though not necessarily functional) separation between government and industry. This separation encourages and, to some extent, necessitates the government to invoke the most compelling reasons, such as national security grounds, to justify its interventions with private industry. This article explains the inherent risks of such national security invocations to corporate freedom and international trade. It presents an alternative approach, under which corporate interests and government industrial policy can be better aligned. The role of government in the economy and private industry must be reconsidered. Adopting a new approach will facilitate a mutually beneficial partnership between government and industry, helping to avoid inappropriate recourse to national security obligations for commercial purposes in domestic and international contexts. This proposed partnership will not be inconsistent with the preservation of corporate autonomy and freedom but will actually help to preserve these interests when government interventions are inevitable to address national economic issues such as the semiconductor shortage