Economics and Law: Ms. Shiva Jain
Economics and Law: Ms. Shiva Jain
• A good law always encourages economic development and a bad law and inhibits it.
• Law imparts trust in actual government procedure and provides security to the
society.
• This is done through the appropriate system of property right contracts and extra
contractual liability which can generate efficient use of resources.
Relationship between law and
economics
•Well conceived labour laws were laid down to protect the rights of child labours, bonded
labourers, women labours etc. All are dealt with regard to specific social context in mind.
• In past years the incidence of black marketing, tax avoidance and evasion have increased so
much that it has become essential for government to pass certain rules and regulation to
check the development of these economic as well as social evils. The taxation law contains a
number of incentives and disincentives to achieve the planned objective.
Relationship between law and
economics
•Contract is another important feature of market economy. We know that
contact is written agreement between two parties and it is binding on both the
parties, no third party is allowed to interfere. Initially the court did not allow the
state to interfere into contract. But there were many development, which
forced the law courts to take action in these contracts.
•Consumer Protection Act has been passed to protect the interest of the
consumers. This is also example of law of contract making in roads in the
sanctity of contract. Because of the consumer protection act now it has become
essential for the company to maintain quality control. The marginal cost of
resources put to quality control is less than marginal cost of legal action. So, its
better that they devote their resources to quality control.
•Considering the social evils associated with agrarian system land Reform Act
had to be passed the presence of a country form a large chunk of the
population in post independent India their condition was really pathetic it took
a lot of effort on the part of Indian state and government to take action against
the class of intermediaries which had group between the government and the
pigeons many organizational changes were made in the land tenure system to
bring about Land Reforms and tenancy reforms.
Economic Law and Government
Law
Economic offences
Economic offences form a separate category of crimes and the criminal offences. These
are often referred as White or Blue Collar crimes. Indulgence by technocrats, highly
qualified person, Businessman etc. in various scams facilitated by the technological
advancement is often seen. In economic offences, not only individual get victimized with
pecuniary loss. Such offences often damage the national economy and defense.
Recently, increase in economic offences is more than increase in conventional crime due
to increase in globalization, internet banking etc.
•Ex: import export frauds
•Banking frauds
•Insurance frauds
•Foreign exchange frauds
•Smuggling of narcotics and psychotropic substances
•Forgery of travel documents identity papers and Overseas job rackets.
•Counterfeit currency and fake government stamp paper
•Smuggling of antiques arts and Treasures cybercrimes
•Wildlife and environmental crimes
•Violation of intellectual property rights, audio and video privacy, Software Privacy etc.
•Frauds through manipulation of prices of shares listed on stock exchanges, insider
trading etc.