Concerns centered on the rule of law are the consistency, predictability,
and transparency of the law. Legal rules that are variable, intrusive, and
unclear stand in the way of economic freedom and global progress.
Rule of law concerns also focus on the degree to which legal rules and
processes give those who apply the law discretion, as opposed to
directing them in ways that are more constraining. Greater discretion
tends to encourage less predictable and less principled decision-
making.
The last century saw an extraordinary expansion of markets and of
world trade. But it also saw a proliferation of barriers to open
markets. Even regimes that are ostensibly open to individual
decision-making, that embrace strong property rights, and that are
governed by law, have seen marked increases in governmental
control over individual action and derogations of property rights.
Often, derogations from the rule of law occur within realms of
administrative or judicial discretion. Lawsuits with little or no prospect
of providing money to any injured party are brought by lawyers who
stand to profit handsomely and entertained by courts, at great expense
to the public. At times, businesses engaged in ordinary commercial
conduct that serves consumers’ interests face huge financial penalties
tied to novel and unproven theories.
Although many barriers to international trade, investment, and
competition have been lowered, there remain substantial barriers,
both formal and, more often, informal – including regulatory and
litigation related barriers – that are used in many nations to protect
national champions against efficient global competitors. These
barriers constitute a tax on citizens and an impediment to the
economic advancement which is critical to progress in so many areas.
Scholars affiliated with the Center for the Rule of Law explore these and
other issues, analyzing the operation of various governmental, legal, and
regulatory programs and rules, assessing their consistency with rule of
law values.
- Honorable Ronald A. Cass, Chairman
