6/30/2023 0 Comments Sen development as freedom![]() Similarly, in The Law-Growth Nexus, law professor Kenneth Dam explains how legal institutions affect economic development. These ethical guardrails help fortify the public’s trust in commercial exchange. While praising the role of markets in economic development, Sen emphasizes that properly functioning government institutions are necessary for effective markets. (Shortform note: “Right to disclosure” refers to rules like the SEC’s requirement for publicly traded corporations to release pertinent information about their businesses-such as balance sheets, income statements, and statements of cash flows.) ![]() Ethical guardrails create openness and trust in social interactions (especially commerce) and are necessary to prevent government corruption, crooked business practices, and other unethical behavior. Ethical GuardrailsĪccording to Sen, ethical guardrails include the “right to disclosure,” or public “right to know,” as well as other components of business and contract law. In their view, these gains justify the government providing education, because the benefits exceed the costs. ![]() Following Becker’s lead, many economists also make the case that in addition to individual gains in productivity from better human capital, there are social gains as well. ![]()
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