Rule of Law - Impediment for Economic Growth?

 An Impediment?

Dr.Manmohan Singh, Prime Minister, inaugurating international conference on "Economic Growth and Changes in Corporate Environment in Asia" is reported to have made certain observations regarding Supreme Court Judgments and their impact on economic growth.

"As recent judgments have shown, the adjudication of rights and claims between parties, including between state actors and non-state parties, has wide implications for the economy and can no longer be viewed in isolation.—Therefore, Judges of the 21 st century have to be social scientists, economists, political thinkers and philosophers"

A Stimulant?

Around the same time, Justice S.H.Kapadia, Chief Justice of India, is reported to have rejected the notion that the "Rule of Law" was an impediment to economic growth, terming it instead the 'single largest" stimulant factor. Further, a "minimum standard of fairness" was being ensured only through the "Rule of Law" 

Justice Kapadia is also reported to have said, with apparent reference to "Coal Gate", the basic fact is that Loss is a matter of Fact, where as Profit or Gain is a matter of Opinion" 

In the absence of economic literacy, coupled with legal literacy, "government institutions will suffer---in terms of democracy and the economy will be in peril."  He said, The Constitution had mandated that the Government to"-strive for economic democracy" and without it "political democracy will be in peril.

Ground Realities:

The present Government Policies, which tend to circumvent the "Rule of Law" particularly the Environmental Law, in the name of rapid economic development, are resulting in the concentration of wealth and means of production to the common detriment, going against economic democracy , social order and welfare of the people, in utter disregard to the constitutional obligations. 

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