

Yong-Shik Lee, "Law and Development: Theory and Practice, 2nd edition" (Routledge, 2021)
Aug 30, 2025
Yong-Shik Lee, a law and development scholar and Director of the Law and Development Institute, dives deep into the interplay between law and economic progress. He discusses the innovative General Theory of Law and Development, revealing how legal frameworks fueled South Korea's transformation. Lee critiques existing theories like Hayek's and emphasizes adaptable legal systems for tailored development. He also explores Hirschman's incremental reform approach and the pivotal role of the state versus market dynamics in fostering growth, underlining the need for effective legal institutions.
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Law Shapes Development Trajectories
- Laws and institutions deeply shape economic life even when citizens don't notice them.
- Lee argues specialized statutes and bodies can deliberately redirect national development trajectories.
Korea's Industry-Focused Legal Push
- South Korea passed industry-specific laws and created an Economic Development Board in the 1960s.
- Those deliberate legal and institutional choices helped transform Korea from extreme poverty to industrial power.
Context Determines Legal Success
- Context matters: copying Korea's laws failed elsewhere because socioeconomic conditions differed.
- Effective law reform requires selecting institutions that fit local capabilities and social context.