6 THE AMERICAN JOURNAL OF COMPARATIVE LAW [Vol.44 able successes.As the decade of the 1990s began,the World Bank suggested that China might become another Asian miracle.28 Today,nearly everyone agrees that a market requires an appro- priate legal structure.29 Obviously,investors need laws to ensure the stability and predictability they require to risk their capital3o mainly,the laws some label private'law (principally contract and property law in all their multitudinous varieties).As the list of 22 priority laws and other laws now in draft indicate,31 China's govern- ment recognized the necessity of additional laws to structure the market's institutional infrastructure;for example,the social security regulations,an agricultural extension law,environmental legislation, and an education law.32 Just as markets take many different forms,so the laws that cre- ate,change or buttress the institutions markets need to function take many different forms.33 The kinds of rules a government enacts help to shape the kind of markets that will develop.34 All law prescribes repetitive patterns of behavior for its address- ees.35 By definition,patterns of repetitive behaviours comprise 'insti- 28.World Bank,supra n.18;but cf.Chantornvong,"Toqueville's Democracy in America and the Third World,"in Vincent Ostrom,Rethinking Institutional Analysis and Development 69 (1993);SeidmanSeidman,supra n.9,at 47-50.The Bank really defines an 'economic miracle'as a country with a high growth rate;it pays relatively little attention to distribution issues. 29.See,e.g.,Richard A.Posner,The Economic Analysis of Law (3rd ed.1986); Reich,"Of Markets and Myths,"83 Commentary 38(1987). 30.Weber,supra n.24. 31. See supra n.16. 32.Cf.Zhou Zhiyang (sometime General Secretary,Communist Party of China, and later,until 1989,Prime Minister),in Keith,supra n.17,at 22("We must attend to legislation and to economic development and reform at the same time....on the one hand,we should improve legislation and the procedures for law enforcement,en- able the judicial organs to exercise independent authority,as prescribed by law,and enhance citizens'awareness of law;on the other hand we should see to it that legisla- tion guarantees good order in economic development. We should try to define,in terms of laws and rules,what should be encouraged and what should be rejected. Only in this way can we bring about a new standard for political,economic and social activities....In short,through reform we should gradually establish a legal frame- work for our socialist democracy and institutionalize it.This is a fundamental guar- antee against a recurrence of the 'cultural revolution'and for lasting political stability in our country.") 33.Consider,for example,that bane of the first year law student,the 'majority' and 'minority'versions of practically any rule one chooses for contract and property laws. 34.Reich,supra n.29,at 38("The idea of a market somehow separate from law is a fantasy.The market was not created by divine will.It is a human artifact....What is mine?What is yours?What is ours?And how do we deal with actions that threaten these borders-theft,force,fraud,extortion or carelessness?What should we trade,and what should we not?(Drugs?Sex?Votes?Babies?)How should we enforce these decisions and what penalties apply to transgressions?As a culture ac- cumulates answers to these questions,it creates its version of the market.") 35.This holds whatever the form of law.A law may in terms declare rights and duties;in fact,it embodies rules concerning behavior.The law's statement that A has title to her wrist watch says only that A has a right to possession,to sell,to lease,to This content downloaded by the authorized user from 192.168.82 207 on Thu,15 Nov 2012 12:37:41 PM All use subject to JSTOR Terms and Conditions6 THE AMERICAN JOURNAL OF COMPARATIVE LAW [Vol. 44 able successes. As the decade of the 1990s began, the World Bank suggested that China might become another Asian miracle.28 Today, nearly everyone agrees that a market requires an appro￾priate legal structure.29 Obviously, investors need laws to ensure the stability and predictability they require to risk their capital30 mainly, the laws some label 'private' law (principally contract and property law in all their multitudinous varieties). As the list of 22 priority laws and other laws now in draft indicate,3' China's govern￾ment recognized the necessity of additional laws to structure the market's institutional infrastructure; for example, the social security regulations, an agricultural extension law, environmental legislation, and an education law.32 Just as markets take many different forms, so the laws that cre￾ate, change or buttress the institutions markets need to function take many different forms.33 The kinds of rules a government enacts help to shape the kind of markets that will develop.34 All law prescribes repetitive patterns of behavior for its address￾ees.35 By definition, patterns of repetitive behaviours comprise 'insti- 28. World Bank, supra n. 18; but cf. Chantornvong, "Toqueville's Democracy in America and the Third World," in Vincent Ostrom, Rethinking Institutional Analysis and Development 69 (1993); Seidman & Seidman, supra n. 9, at 47-50. The Bank really defines an 'economic miracle' as a country with a high growth rate; it pays relatively little attention to distribution issues. 29. See, e.g., Richard A. Posner, The Economic Analysis of Law (3rd ed. 1986); Reich, 'Of Markets and Myths," 83 Commentary 38 (1987). 30. Weber, supra n. 24. 31. See supra n. 16. 32. Cf. Zhou Zhiyang (sometime General Secretary, Communist Party of China, and later, until 1989, Prime Minister), in Keith, supra n. 17, at 22 ("We must attend to legislation and to economic development and reform at the same time... .on the one hand, we should improve legislation and the procedures for law enforcement, en￾able the judicial organs to exercise independent authority, as prescribed by law, and enhance citizens' awareness of law; on the other hand we should see to it that legisla￾tion guarantees good order in economic development... .We should try to define, in terms of laws and rules, what should be encouraged and what should be rejected. Only in this way can we bring about a new standard for political, economic and social activities... In short, through reform we should gradually establish a legal frame￾work for our socialist democracy and institutionalize it. This is a fundamental guar￾antee against a recurrence of the 'cultural revolution' and for lasting political stability in our country.") 33. Consider, for example, that bane of the first year law student, the 'majority' and 'minority' versions of practically any rule one chooses for contract and property laws. 34. Reich, supra n. 29, at 38 ("The idea of a market somehow separate from law is a fantasy. The market was not created by divine will. It is a human artifact... What is mine? What is yours? What is ours? And how do we deal with actions that threaten these borders - theft, force, fraud, extortion or carelessness? What should we trade, and what should we not? (Drugs? Sex? Votes? Babies?) How should we enforce these decisions and what penalties apply to transgressions? As a culture ac￾cumulates answers to these questions, it creates its version of the market.") 35. This holds whatever the form of law. A law may in terms declare rights and duties; in fact, it embodies rules concerning behavior. The law's statement that A has title to her wrist watch says only that A has a right to possession, to sell, to lease, to This content downloaded by the authorized user from 192.168.82.207 on Thu, 15 Nov 2012 12:37:41 PM All use subject to JSTOR Terms and Conditions