The Great Degeneration: How Institutions Decay and Economies Die (13 page)

16
. Juan C. Botero, Simeon Djankov, Rafael La Porta, Florencio Lopez-de-Silanes and Andrei Shleifer, ‘The Regulation of Labor’,
Quarterly Journal of Economics
, 119, 4 (November 2004), pp. 1339–82.

17
. Rafael La Porta, Florencio Lopez-de-Silanes and Andrei Shleifer, ‘What Works in Securities Laws?’,
Journal of Finance
, 61, 1 (February 2006), pp. 1–32.

18
. Simeon Djankov, Oliver Hart, Caralee McLiesh and Andrei Shleifer, ‘Debt Enforcement around the World’,
Journal of Political Economy
, 116, 6 (2008), pp. 1105–49.

19
. Rafael La Porta, Florencio Lopez-de-Silanes and Andrei Shleifer, ‘The Economic Consequences of Legal Origins’,
Journal of Economic Literature
, 46, 2 (June 2008), pp. 285–332.

20
. Ibid., p. 300.

21
. He Weifang, ‘The Ongoing Quest for Judicial Independence in China (2001)’, in idem,
In the Name of Justice
.

22
. Greif, ‘Institutions and the Path to the Modern Economy’, pp. 766–8.

23
. See e.g. Naomi R. Lamoreaux and Jean-Laurent Rosenthal, ‘Legal Regime and Business’s Organizational Choice: A Comparison of France and the United States during the Mid-Nineteenth Century’, NBER Working Paper 10288 (February 2004); Naomi R. Lamoreaux and Jean-Laurent Rosenthal, ‘Contractual Tradeoffs and SMEs’ Choice of Organizational Form: A View from U.S. and French History, 1830–2000’, NBER Working Paper 12455 (August 2006).

24
. Timothy Guinnane, Ron Harris, Naomi R. Lamoreaux and Jean-Laurent Rosenthal, ‘Putting the Corporation in its Place’, NBER Working Paper 13109 (May 2007); Aldo Musacchio,
Experiments in Financial Democracy: Corporate Governance and Financial Development in Brazil,
1882–1950
(Cambridge, 2009).

25
. David Collison, Stuart Cross, John Ferguson, David Power and Lorna Stevenson, ‘Legal Determinants of External Finance Revisited: The Inverse Relationship between Investor Protection and Societal Well-Being’,
Journal of Business Ethics
, 108 (2012), pp. 393–410.

26
. Charles Dickens,
Bleak House
(1852–3), ch. 1.

27
. Michael Slater,
Dickens: A Life Defined by Writing
(New Haven, 2009), esp. pp. 340–58.

28
. Richard Danzig, ‘Hadley v. Baxendale: A Study in the Industrialization of the Law’,
Journal of Legal Studies
, 4, 2 (June 1975), pp. 267f.

29
. Rande W. Kostal,
Law and English Railway Capitalism,
1825–1875
(Oxford, 1994).

30
. Danzig, ‘Hadley v. Baxendale’, p. 277.

31
. Ibid., p. 252n.

32
. Ibid., p. 254.

33
.
Kleinwort Benson
v.
Lincoln City Council
[1999] 2 AC 349, Lord Goff at pp. 377ff.

34
. Philip K. Howard, ‘It’s Time to Clean House’,
Atlantic Monthly
, 14 March 2012.

35
. Idem, ‘Results-Based Regulation: A Blueprint for Starting Over’,
Common Good
, 2 December 2011: http://www.commongood.org/blog/entry/philip-k.-howard-on-the-need-for-results-based-regulation.

36
. Calculated from data in Ida A. Brudnick, ‘Congressional Salaries and Allowances’, Congressional Research Service report, 4 January 2011; Office of Management and Budget,
Fiscal Year 2013 Budget of the U.S. Government
(Washington, DC, 2010); the 2013 Federal Judicial Budget. See also Susan Dudley and Melinda Warren, ‘Fiscal Stalemate Reflected in Regulators’ Budget: An Analysis of the U.S. Budget for Fiscal Years 2011 and 2012’, Regulators’ Budget Report 33, 11 May 2011.

37
. 2011 actual expenditure listed in Center for Responsive Politics Report: http://www.opensecrets.org/lobby/index.php.

38
. Nicole V. Crain and W. Mark Crain, ‘The Impact of Regulatory Costs on Small Firms’, Small Business Administration, Office of Advocacy (September 2010).

39
. Lawrence J. McQuillan, Hovannes Abramyan and Anthony P. Archie,
Jackpot Justice: The True Cost of America’s Tort System
(San Francisco, 2007), p. xii.

40
. Lawrence J. McQuillan and Hovannes Abramyan,
U.S. Tort Liability Index: 2010 Report
(San Francisco, 2010), p. 18. Cf. Towers Perrin,
2009
Update on U.S. Tort Cost Trends
(n.p., 2009).

41
. Lawrence Chimerine and Ross Eisenbrey, ‘The Frivolous Case for Tort Law Change: Opponents of the Legal System Exaggerate its Costs, Ignore its Benefits’, Economic Policy Institute Briefing Paper (May 2005).

42
. David Kennedy and Joseph Stiglitz,
Law and Economics with Chinese Characteristics: Institutions for Promoting Development in the Twenty-First Century
(forthcoming).

43
. Michael E. Porter, Mercedes Delgado, Christian Ketels and Scott Stern, ‘Moving to a New Global Competitiveness Index’, in World Economic Forum,
Global Competitiveness Report,
2008–2009
(Geneva, 2009).

44
. Michael E. Porter and Jan W. Rivkin, ‘The Looming Challenge to U.S. Competitiveness’,
Harvard Business Review
(March 2012), and the same authors’ ‘Choosing the United States’, ibid.

45
. World Economic Forum,
Global Competitiveness Report,
2011–2012
(Geneva, 2011).

46
. Heritage Foundation,
Index of Economic
Freedom
2011
(Washington, DC, 2011): http://www.heritage.org/index/ranking.

47
. International Finance Corporation,
Doing Business
2011
(Washington, DC, 2011).

48
. World Justice Project, Rule of Law Index 2011 (Washington, DC, 2011).

49
. World Bank, Worldwide Governance Index: www.gov indicators.org.

50
. International Financial Corporation, Doing Business dataset: http://www.doingbusiness.org/.

51
. Stephan Haggard and Lydia Tiede, ‘The Rule of Law and Economic Growth: Where Are We?’,
World Development
, 39, 5 (2011), pp. 673–85.

52
. For an excellent survey, see Michael Trebilcock and Jing Leng, ‘The Role of Formal Contract Law and Enforcement in Economic Development’,
Virginia Law Review
, 92 (2006), pp. 1517–80, esp. pp. 1554–75.

53
. Daron Acemoglu and James A. Robinson,
Why Nations Fail: The Origins of Power, Prosperity, and Poverty
(New York, 2012), pp. 445f.

54
. Donald C. Clarke, ‘Power and Politics in the Chinese Court System: The Enforcement of Civil Judgments’,
Columbia Journal of Asian Law
, 10, 1 (1996), pp. 1–125.

55
. See He Weifang,
In the Name of Justice
, passim.

56
. Ethan Michelson and Sida Lui, ‘What Do Chinese Lawyers Want? Political Values and Legal Practice’, in Cheng Li (ed.),
China’s Emerging Middle Class: Beyond Economic Transformation
(Washington, DC, 2010), pp. 310f., 316, 320, 328f.

57
. Lulu Chen, ‘Mainland’s Last Chance to Reform’,
South China Morning Post
, 3 June 2012.

58
. He Weifang, ‘Constitutionalism as a Global Trend and its Impact on China (2004)’, in idem,
In the Name of Justice
.

59
. Mancur Olson,
The Rise and Decline of Nations: Economic Growth, Stagflation and Social Rigidities
(New Haven/London, 1982).

60
. R. Eric Petersen, ‘Representatives and Senators: Trends in Member Characteristics since 1945’, Congressional Research Service, 17 February 2012; Jennifer E. Manning, ‘Membership of the 112th Congress: A Profile’, Congressional Research Service, 1 March 2011; Edmund Tetteh, ‘Election Statistics: UK 1918–2007’, House of Commons Library Research Paper 08/12, 1 February 2008.

Chapter 4: Civil and Uncivil Societies

1
. Alexis de Tocqueville,
Democracy in America
, trans. Harvey C. Mansfield and Delba Winthrop (Chicago, 2000), book I, part 2, ch. 4.

2
. Ibid., book II, part 2, ch. 5.

3
. Ibid.

4
. Marvin Olasky,
The Tragedy of American Compassion
(Washington, DC, 1992).

5
. Edward C. Banfield,
The Moral Basis of a Backward Society
(Glencoe, IL, 1958).

6
. Robert D. Putnam,
Bowling Alone: The Collapse and Revival of American
Community
(New York, 2000).

7
. Theda Skocpol,
Diminished Democracy: From Membership to Management
in American Life
(Norman, OK, 2003).

8
. Charles Murray,
Coming Apart: The State of White America,
1960–2010
(New York, 2012).

9
. Peter Hall, ‘Social Capital in Britain’,
British Journal of Politics
, 29 (1999), p. 419.

10
. José Harris, ‘Society and the State in Twentieth Century Britain’, in F. M. L. Thompson (ed.),
The Cambridge Social History of Britain
1750–1950
, vol. III:
Social Agencies and Institutions
(Oxford, 1990), p. 68.

11
. Robert Humphreys,
Poor Relief and Charity,
1869–1945
(London, 2001), tables 2.7, 3.2, 4.1 and 4.2, pp. 55, 68, 105, 109.

12
. Jane Lewis,
The Voluntary Sector, the State, and Social Work in Britain: The Charity Organisation Society and the Family Welfare Association since
1869
(London, 1995).

13
. Peter A. Hall, ‘Social Capital in Britain’,
British Journal of Political Science
, 29 (1999), pp. 421f.

14
. Compare ‘Friendly Societies’,
British Medical Journal
, 25 December 1909, with Register of Friendly Societies,
Report of the Chief Registrar,
2000–2001
(London, 2001).

15
. P. H. J. H. Gosden,
Self-Help: Voluntary Associations in the Nineteenth Century
(Leeds, 1973), tables 3.1 and 4.5, pp. 42, 104.

16
. Evan Schofer and Marion Fourcade-Gourinchas, ‘The Structural Contexts of Civic Engagement: Voluntary Association Membership in Comparative Perspective’,
American Sociological Review
, 66 (December 2001), p. 808.

17
. National Council for Voluntary Organizations,
Participation: Trends, Facts and Figures
(March 2011), p. 18.

18
. Edd Cowley, Tom McKenzie, Cathy Pharoah and Sarah Smith, ‘The New State of Donation: Three Decades of Household Giving to Charity, 1978–2008’, Centre for Market and Public Organisation, University of Bristol (February 2011).

19
. Robert Rutherfoord,
Community Action in England: A Report on the 2009–10 Citizenship Survey
(December 2011); idem,
Community Spirit in England: A Report on the 2009–10 Citizenship Survey
(December 2011).

20
. Eric Schmidt and Jared Cohen, ‘The Digital Disruption: Connectivity and the Diffusion of Power’,
Foreign Affairs
(November/December, 2010).

21
. Nicole B. Ellison, Charles Steinfield and Cliff Lampe, ‘The Benefits of Facebook “Friends”: Social Capital and College Students’ Use of Online Social Network Sites’,
Journal of
Computer-Mediated Communication
, 12, 4 (2007): http://jcmc.indiana.edu/vol12/issue4/ellison.html. See also Nicole B. Ellison, Charles Steinfield and Cliff Lampe, ‘Connection Strategies: Social Capital Implications of Facebook-Enabled Communication Practices’,
New Media Society
, 13, 6 (2011), pp. 873–92.

22
. Tocqueville,
Democracy in America
, book II, part 4, ch. 6.

23
. Ibid., part 2, ch. 5.

24
. Peter H. Lindert, ‘Voice and Growth: Was Churchill Right?’,
Journal of Economic History
, 63, 2 (June 2003), pp. 315–50; idem, ‘Why the Welfare State Looks Like a Free Lunch’, NBER Working Paper 9869 (July 2003). See also Sun Go and Peter H. Lindert, ‘The Curious Dawn of American Public Schools’, NBER Working Paper 13335 (August 2007).

25
. Paul Collier, ‘Private v State: Here’s How to Bridge the Educational Divide’,
Independent
, 14 January 2010.

26
. ‘The Horse before the Cart’,
Economist
, 17 September 2011.

27
. ‘Education Reform: Back to School’,
Economist
, 9 September 2011.

28
. Mogens Kamp Justesen, ‘Learning from Europe: Parental Empowerment in the Dutch and Danish Education Systems’, Adam Smith Institute (2002).

29
. Results for 2010–11 at http://www.successacademies.org/page.cfm?p=11.

30
. ‘The Ties that Bind’,
Economist
, 28 March 2012.

31
. James Tooley,
The Beautiful Tree: A Personal Journey into How the World’s Poorest People are Educating Themselves
(Washington, DC, 2009).

32
. Martin West and Ludger Woessmann, ‘“Every Catholic in a Catholic School”: Historical Resistance to State Schooling, Contemporary School Competition, and Student Achievement across Countries’,
Economic Journal
, 120, 546 (2010), pp. 229–55.

33
. Toby Helm and Julian Coman, ‘Rowan Williams Pours Scorn on David Cameron’s “Big Society”’,
Guardian
, 24 June  2012.

34
. ‘Martin Sime Addresses the Big Society in Scotland Conference’, 28 October 2011: http://www.scvo.org.uk/scvo-news/martin-sime-addresses-the-big-society-in-scotland-conference/.

Conclusion

1
. Robert C. Allen, Jean-Pascal Bassino, Debin Ma, Christine Moll-Murata and Jan Luiten van Zanden, ‘Wages, Prices, and Living Standards in China, 1739–1925: In Comparison with Europe, Japan, and India’,
Economic History Review
, 64 (2011), table 3, p. 36.

2
. Orley C. Ashenfelter, ‘Comparing Real Wages’, NBER Working Paper 18006 (April 2012).