Dependency theory is typically associated with economists Raul Prebisch, Andre Gunder Frank, and their followers
world systems analysis is associated with the historian Emmanuel Wallerstein.
Though there are important differences between the dependency and world systems approaches, the two can be said to share the following basic views
both assign nations of the world to categories such as "core/periphery," "center/periphery," or "dominant/dependent," based upon their wealth and power.
This international division of labor, the "international system," favors some countries to the detriment of others and limits the development possibilities of the subordinate economies. This ultimately results in "a situation in which the economy of a certain group of countries is conditioned by the development and expansion of another economy, to which their own is subjected."\
modernization theory had seen integration into the international economic order as basically benign and desirable, though its focus on state-supported industrialization
counted on the nation state to play the necessary, interventionist role of fostering industrialization
modernization's strategy of replicating within developing countries the institutions of "modern" societies
an orthodoxy of law and development that corresponded to modernization theory
"process" or "systemic" concerns important to the modernization era, such as building modern
government institutions and ensuring that legal systems could effectively transmit government policies,
Washington Consensus Rule of Law
The next real orthodoxy that arose following the demise of the modernization movement was the rule of law orthodoxy associated with the Washington Consensus and the energetic neoliberalism of the 1990s. This was the orthodoxy developed to frame and justify the massive law and development agenda that grew out of the collapse of the Soviet Union, and which accompanied the economic globalization of the 1990s. References to economist Douglass North's designation of law as an
"institution" with important economic implications helped justify legal reform initiatives
rule of law became the umbrella concept used to rhetorically unify a wide range of legal development
free markets and limited government
new institutional economics, NIE; brings institutional structures and processes, explicitly including law, back into economic theorizing.
the fall of the Berlin Wall and the collapse of the socialist world---left developing countries with nowhere to turn for assistance except the U.S.-dominated West, in which views on economics and the role of the state in society had taken a strong turn towards the market
NIE--economic behavior, whether by individuals or by firms, is affected by the institutional setting in
which actors find themselves
NIE--The approach is sometimes traced to Ronald Coase's 1937 article, The Nature of the Firm, which argued that a firm's decision to produce an input itself, or instead to obtain it by contracting with an outside producer, should be understood as based upon a consideration of the "transaction
costs" involved, mainly the costs involved in creating and enforcing the purchase contract. Coase's thesis was that a firm will continue to bring production of inputs in-house until the cost of doing so exceeds the cost of obtaining them on the market, and because transaction costs are determined by the institutional environment in which the firm exists, it is this institutional environment that determines in a very real way the scope of any particular firm. From this insight grew the field of "transaction
cost economics," associated with Oliver Williamson and others, and the broader NIE tradition.
Related to NIE is the "public choice" tradition in economics, which applies the methods of microeconomics to the study of real,especially political, institutions.Public choice sentiment was
already well represented in development economics through the work of Ann Krueger and Jagdish Bhagwati, among others, whose attacks in the 1970s on rent-seeking by Third World governments
constituted part of the rejection of the modernization approach.
Private property rights
providing clear and enforceable private property rights, and rules-based contract law that would facilitate trade.