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Can Private Governance Create Economic and Social Order without a Formal Legal System?

Year 2022, Issue: 105, 29 - 60, 23.03.2022
https://doi.org/10.36484/liberal.959112

Abstract

This paper is about private governance or private legal systems. In addition to the inherent constraints (difficulty to access to information, limited enforcement mechanisms, etc.) emphasized by advocates of transaction cost economics, the inadequacy of the legal system in developing countries increases the importance of private governance. There are two different forms of private governance, spontaneous and centralized. In spontaneous private governance, since information is easily disseminated through social networks, the behavior of parties is mostly controlled by social norms. Those who engage in undesirable behavior are subject to collective punishment. The characteristics of the group in centralized governance make it difficult to obtain accurate information and collective punishment. Thus, economic and social order is provided under the leadership of various organizations such as associations and market intermediaries. Despite their advantages, the common consensus on whether private forms of governance can provide effective governance is that they can complement, not replace, the formal legal system.

References

  • Aviram, A. (2003). Regulation by networks. BYU L. Rev., 1179-1235.
  • Aviram, A. (2004). A paradox of spontaneous formation: The evolution of private legal systems. Yale Law & Policy Review, 22 (1), 1-68.
  • Barnett, J. M. (2014). Hollywood deals: Soft contracts for hard markets. Duke LJ, 64, 605-669.
  • Benson, B. L. (1989). The spontaneous evolution of commercial law. Southern Economic Journal, 55(3), 644–661.
  • Bernstein, L. (1992). Opting out of the legal system: Extralegal contractual relations in the diamond industry. The Journal of Legal Studies, 21(1), 115-157.
  • Bernstein, L. (2015). Beyond relational contracts: Social capital and network governance in procurement contracts. Journal of Legal Analysis 7 (2), 561-621.
  • Boettke, P. (2015). Foreword. Edward Stringham (Ed.). Private governance: Creating order in economic and social life in (p. xi-x). USA: Oxford University Press.
  • Chavance, B. (2019). Kurumsal İktisat. (çev. Tuba Akıncılar Onmuş). İstanbul: İletişim Yayınları.
  • Clay, K. (1997). Trade without law: private-order institutions in Mexican California. The Journal of Law, Economics, and Organization, 13(1), 202-231.
  • Coase, R. H. (1960). The problem of social cost. Classic papers in natural resource economics in (p. 87-137). London: Palgrave Macmillan.
  • Deakin, S., Gindis, D., Hodgson, G. M., Huang, K., and Pistor, K. (2017). Legal institutionalism: Capitalism and the constitutive role of law. Journal of Comparative Economics, 45(1), 188-200.
  • Dixit, A. (2003). Trade expansion and contract enforcement. Journal of Political Economy 111 (6), 1293-1317.
  • Dixit, A. K. (2004). Lawlessness and economics: Alternative modes of governance. Princeton: Princeton University Press.
  • Dixit, A. (2009). Governance institutions and economic activity. American economic review 99 (1), 5-24.
  • Ellickson, R. C. (1991). Order without law. Harvard University Press.
  • Ellickson, R. C. (2016). When civil society uses an iron fist: the roles of private associations in rulemaking and adjudication. American Law and Economics Review, 18 (2), 235-271.
  • Gomtsian, S., Balvert, A., Hock, B., and Kirman, O. (2018). Between the green pitch and the red tape: The private legal order of FIFA. Yale J. Int'l L., 43, 85-142.
  • Greif, A. (1993). Contract enforceability and economic institutions in early trade: The Maghribi traders' coalition. The American economic review, 83 (3), 525-548.
  • Hayek, F. (1960 [2011]). Özgürlüğün anayasası. (çev. Yusuf Ziya Çelikkkaya). Ankara: BigBang Yayınları.
  • Hayek, F. (1973 [1994]). Kanun, yasama faaliyeti ve özgürlük. (çev. Atilla Yayla). Ankara: Türkiye İş Bankası Kültür Yayınları.
  • Hendley, K. and Murrell, P. (2003). Which mechanisms support the fulfillment of sales agreements? : Asking decision-makers in firms. Economics Letters 78 (1), 49-54.
  • Hodgson, G. M. (2009). On the institutional foundations of law: the insufficiency of custom and private ordering. Journal of Economic Issues, 43 (1), 143-166.
  • Hodgson, G. M. (2015). Conceptualizing capitalism: Institutions, evolution, future. University of Chicago Press.
  • Katz, A. (1996). Taking private ordering seriously. University of Pennsylvania law review 144 (5), 1745-1763.
  • Katz, E. D. (2000). Private order and public institutions: comments on McMillan and Woodruff's' Private order under dysfunctional public order. Michigan Law Review, 2481-2493.
  • Leeson, P. T. (2009). The laws of lawlessness. The Journal of Legal Studies 38 (2), 471-503.
  • Leathers, C. G. (1989). New and old institutionalists on legal rules: Hayek and Commons. Review of Political Economy, 1 (3), 361-380.
  • McMillan, J., and Woodruff C. (1999). Dispute prevention without courts in Vietnam. Journal of law, Economics, and Organization 15 (3), 637-658.
  • McMillan, J. and Woodruff, C. (2000). Private order under dysfunctional public order. Michigan Law Review, 2421-2458.
  • Milgrom, P. R., North, D.C. and Weingast, B. R. (1990). The role of institutions in the revival of trade: The law merchant, private judges, and the champagne fairs. Economics & Politics, 2(1), 1-23.
  • Milhaupt, C. J. and Pistor, K. (2008). Law & capitalism: What corporate crises reveal about legal systems and economic development around the world. University of Chicago Press.
  • North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge UniversityPress.
  • Olson, M. (1996). Big bills left on the sidewalk: Why some nations are rich, and others poor. Journal of Economic Perspectives, 10 (2), 3 -24.
  • Prüfer, J. (2016). Business associations and private ordering. The Journal of Law, Economics, and Organization 32 (2), 306-358.
  • Pyle, W. (2005). Contractual disputes and the channels for inter-firm communication. Journal of Law, Economics, and Organization, 21 (2), 547-575.
  • Richman, B. D. (2006). How community institutions create economic advantage: Jewish diamond merchants in New York. Law and Social Inquiry, 31 (2), 383-420.
  • Richman, B. D. (2012). Norms and law: Putting the horse before the cart. Duke Law Journal, 62 (3), 739–766.
  • Skoble, A. J. (2006). Hayek the philosopher of law. Edward Feser (Ed.), The Cambridge companion to Hayek in (p. 171-181). Cambridge: Cambridge University Press.
  • Strahilevitz, L. J. (2003). Social norms from close-knit groups to loose-knit groups. The University of Chicago Law Review, 70 (1), 359-372.
  • Stringham, E. (2015). Private governance: Creating order in economic and social life. USA: Oxford University Press.
  • Van den Hauwe, L. (2005). Friedrich August von Hayek (1899–1992). Jürgen G. Backhaus (Ed.), The Elgar companion to law and economics in (p. 545-558). Edward Elgar Publishing.
  • Woodruff, C. (1983). Contract enforcement and trade liberalization in Mexico's footwear industry. World Development, 26 (6), 979-991.
  • Williamson, O. E. (1983). Credible commitments: Using hostages to support exchange. The American Economic Review, 73 (4), 519-540.
  • Williamson, O. E. (2000). The new institutional economics: taking stock, looking ahead. Journal of Economic Literature, 38 (3), 595-613.
  • Williamson, O. E. (2002). The theory of the firm as governance structure: from choice to contract. Journal of Economic Perspectives, 16 (3), 171-195.
  • Williamson, O. E. (2005). The economics of governance. American Economic Review, 95 (2), 1-18.

Özel Yönetişim Formel Yasal Sistem Olmadan İktisadi ve Toplumsal Düzen Oluşturabilir mi?

Year 2022, Issue: 105, 29 - 60, 23.03.2022
https://doi.org/10.36484/liberal.959112

Abstract

Bu makale özel yönetişim veya özel yasal sistemler hakkındadır. İşlem maliyeti iktisatçılarının vurguladığı doğal kısıtların yanı sıra (bilgiye erişim kısıtları, uygulama mekanizmalarının sınırlı olması vb.) gelişmekte olan ülkelerde yasal sistemin yetersizliği özel yönetişimin önemini arttırmaktadır. Spontane ve merkezileşmiş özel yönetişim olarak iki farklı biçiminden bahsedilmektedir. Spontane özel yönetişimde bilgi toplumsal ağlar aracılığı ile kolaylıkla yayıldığından tarafların davranışları çoğunlukla toplumsal normlar aracılığı ile kontrol edilmektedir. İstenmeyen davranışlarda bulunanlar kolektif bir cezalandırmaya maruz kalmaktadır. Merkezileşmiş özel yönetişimde topluluğun nitelikleri, doğru bilginin elde edilmesini ve kolektif cezalandırmayı güçleştirmektedir. Bu nedenle birlikler, piyasa aracıları gibi çeşitli organizasyonlar öncülüğünde ekonomik ve toplumsal düzen sağlanmaktadır. Üstün yanlarına rağmen, etkin bir yönetişim sağlayıp sağlayamayacağına ilişkin ortak uzlaşı
özel yönetişim biçimlerinin formel hukuk sistemin ikamesi değil, tamamlayıcısı olabileceğidir.

References

  • Aviram, A. (2003). Regulation by networks. BYU L. Rev., 1179-1235.
  • Aviram, A. (2004). A paradox of spontaneous formation: The evolution of private legal systems. Yale Law & Policy Review, 22 (1), 1-68.
  • Barnett, J. M. (2014). Hollywood deals: Soft contracts for hard markets. Duke LJ, 64, 605-669.
  • Benson, B. L. (1989). The spontaneous evolution of commercial law. Southern Economic Journal, 55(3), 644–661.
  • Bernstein, L. (1992). Opting out of the legal system: Extralegal contractual relations in the diamond industry. The Journal of Legal Studies, 21(1), 115-157.
  • Bernstein, L. (2015). Beyond relational contracts: Social capital and network governance in procurement contracts. Journal of Legal Analysis 7 (2), 561-621.
  • Boettke, P. (2015). Foreword. Edward Stringham (Ed.). Private governance: Creating order in economic and social life in (p. xi-x). USA: Oxford University Press.
  • Chavance, B. (2019). Kurumsal İktisat. (çev. Tuba Akıncılar Onmuş). İstanbul: İletişim Yayınları.
  • Clay, K. (1997). Trade without law: private-order institutions in Mexican California. The Journal of Law, Economics, and Organization, 13(1), 202-231.
  • Coase, R. H. (1960). The problem of social cost. Classic papers in natural resource economics in (p. 87-137). London: Palgrave Macmillan.
  • Deakin, S., Gindis, D., Hodgson, G. M., Huang, K., and Pistor, K. (2017). Legal institutionalism: Capitalism and the constitutive role of law. Journal of Comparative Economics, 45(1), 188-200.
  • Dixit, A. (2003). Trade expansion and contract enforcement. Journal of Political Economy 111 (6), 1293-1317.
  • Dixit, A. K. (2004). Lawlessness and economics: Alternative modes of governance. Princeton: Princeton University Press.
  • Dixit, A. (2009). Governance institutions and economic activity. American economic review 99 (1), 5-24.
  • Ellickson, R. C. (1991). Order without law. Harvard University Press.
  • Ellickson, R. C. (2016). When civil society uses an iron fist: the roles of private associations in rulemaking and adjudication. American Law and Economics Review, 18 (2), 235-271.
  • Gomtsian, S., Balvert, A., Hock, B., and Kirman, O. (2018). Between the green pitch and the red tape: The private legal order of FIFA. Yale J. Int'l L., 43, 85-142.
  • Greif, A. (1993). Contract enforceability and economic institutions in early trade: The Maghribi traders' coalition. The American economic review, 83 (3), 525-548.
  • Hayek, F. (1960 [2011]). Özgürlüğün anayasası. (çev. Yusuf Ziya Çelikkkaya). Ankara: BigBang Yayınları.
  • Hayek, F. (1973 [1994]). Kanun, yasama faaliyeti ve özgürlük. (çev. Atilla Yayla). Ankara: Türkiye İş Bankası Kültür Yayınları.
  • Hendley, K. and Murrell, P. (2003). Which mechanisms support the fulfillment of sales agreements? : Asking decision-makers in firms. Economics Letters 78 (1), 49-54.
  • Hodgson, G. M. (2009). On the institutional foundations of law: the insufficiency of custom and private ordering. Journal of Economic Issues, 43 (1), 143-166.
  • Hodgson, G. M. (2015). Conceptualizing capitalism: Institutions, evolution, future. University of Chicago Press.
  • Katz, A. (1996). Taking private ordering seriously. University of Pennsylvania law review 144 (5), 1745-1763.
  • Katz, E. D. (2000). Private order and public institutions: comments on McMillan and Woodruff's' Private order under dysfunctional public order. Michigan Law Review, 2481-2493.
  • Leeson, P. T. (2009). The laws of lawlessness. The Journal of Legal Studies 38 (2), 471-503.
  • Leathers, C. G. (1989). New and old institutionalists on legal rules: Hayek and Commons. Review of Political Economy, 1 (3), 361-380.
  • McMillan, J., and Woodruff C. (1999). Dispute prevention without courts in Vietnam. Journal of law, Economics, and Organization 15 (3), 637-658.
  • McMillan, J. and Woodruff, C. (2000). Private order under dysfunctional public order. Michigan Law Review, 2421-2458.
  • Milgrom, P. R., North, D.C. and Weingast, B. R. (1990). The role of institutions in the revival of trade: The law merchant, private judges, and the champagne fairs. Economics & Politics, 2(1), 1-23.
  • Milhaupt, C. J. and Pistor, K. (2008). Law & capitalism: What corporate crises reveal about legal systems and economic development around the world. University of Chicago Press.
  • North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge UniversityPress.
  • Olson, M. (1996). Big bills left on the sidewalk: Why some nations are rich, and others poor. Journal of Economic Perspectives, 10 (2), 3 -24.
  • Prüfer, J. (2016). Business associations and private ordering. The Journal of Law, Economics, and Organization 32 (2), 306-358.
  • Pyle, W. (2005). Contractual disputes and the channels for inter-firm communication. Journal of Law, Economics, and Organization, 21 (2), 547-575.
  • Richman, B. D. (2006). How community institutions create economic advantage: Jewish diamond merchants in New York. Law and Social Inquiry, 31 (2), 383-420.
  • Richman, B. D. (2012). Norms and law: Putting the horse before the cart. Duke Law Journal, 62 (3), 739–766.
  • Skoble, A. J. (2006). Hayek the philosopher of law. Edward Feser (Ed.), The Cambridge companion to Hayek in (p. 171-181). Cambridge: Cambridge University Press.
  • Strahilevitz, L. J. (2003). Social norms from close-knit groups to loose-knit groups. The University of Chicago Law Review, 70 (1), 359-372.
  • Stringham, E. (2015). Private governance: Creating order in economic and social life. USA: Oxford University Press.
  • Van den Hauwe, L. (2005). Friedrich August von Hayek (1899–1992). Jürgen G. Backhaus (Ed.), The Elgar companion to law and economics in (p. 545-558). Edward Elgar Publishing.
  • Woodruff, C. (1983). Contract enforcement and trade liberalization in Mexico's footwear industry. World Development, 26 (6), 979-991.
  • Williamson, O. E. (1983). Credible commitments: Using hostages to support exchange. The American Economic Review, 73 (4), 519-540.
  • Williamson, O. E. (2000). The new institutional economics: taking stock, looking ahead. Journal of Economic Literature, 38 (3), 595-613.
  • Williamson, O. E. (2002). The theory of the firm as governance structure: from choice to contract. Journal of Economic Perspectives, 16 (3), 171-195.
  • Williamson, O. E. (2005). The economics of governance. American Economic Review, 95 (2), 1-18.
There are 46 citations in total.

Details

Primary Language Turkish
Subjects Economics
Journal Section Araştırma
Authors

Bahar Baysal Kar 0000-0003-2335-6299

Publication Date March 23, 2022
Submission Date June 29, 2021
Published in Issue Year 2022 Issue: 105

Cite

APA Baysal Kar, B. (2022). Özel Yönetişim Formel Yasal Sistem Olmadan İktisadi ve Toplumsal Düzen Oluşturabilir mi?. Liberal Düşünce Dergisi(105), 29-60. https://doi.org/10.36484/liberal.959112