The Asian Financial Crisis dramatically illustrated the vulnerability of financial markets in emerging, transitional, and advanced economies. In response, international organizations insisted that legal reforms could help protect markets from financial breakdowns. Sitting at the nexus between the legal system and the market, corporate bankruptcy law ensures that the casualties of capitalism are treated in an orderly way. Halliday and Carruthers show how global actors-including the IMF, World Bank, UN, and international professional associations-developed comprehensive norms for corporate bankruptcy laws and how national policymakers responded in turn. Drawing on extensive fieldwork in China, Indonesia and Korea, the authors reveal how national policymakers contested and negotiated domestic laws in the context of global pressures. The first study of its kind, this book offers a theory of legal change to explain why global/local tensions produce implementation gaps. Through its analysis of globalization, this book has lessons for international organizations and developing and transition economies the world over.
"Halliday and Carruthers's book will take tis place as part of a growing tradition of work dissecting the emergence of a system of global economic governance that is redefining what 'world government' is likely to mean in the future. They are pushing forward a new tradition."
American Journal of Sociology
"The beautifully crafted argument of this book culminates an impressive program of research on Asian bankruptcy. Halliday and Carruthers are theoretically profound on the recursivity of law as a dynamic at the foundation of new international financial architectures. This landmark of socio-legal scholarship reframes our understanding of global normmaking."
