This article enquires into the implications the modern literature on economic development emanating from international institutions has for law reform and the role of the state in the economy. The main question asked is whether regulation has a uniform role in all reform contexts or whether there is a difference between the roles for law in the transition to a market economy as opposed to the promotion of general development. While transition, it is suggested, requires a more limited role for law, development necessitates a more thorough involvement of the state in the reform process. Nevertheless, there is evidence to suggest that a minimal role for regulation focused on market promotion required by ‘transition type’ reforms is adopted across the board and still applied to different development scenarios. This is a worrying finding because it contradicts the emerging consensus that the promotion of development – which encompasses political, social, and economic aspects – necessitates a wider role for law.
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