Analysis of the Role of Law in Economic Development

Purpose – The purpose of this paper is to provide legal certainty in developing a special economic zone (SEZ) in order to build the national and regional economy. Besides that, an other purpose is to push the Central Government, the Provincial Government, the Regional Goverment, and the Management Institution to complete the infrastucture and also harmonize the policies and regulations regarding the SEZ in Indonesia, especially in Sei Mangkei.Design/Methodology/Approach – The research method that authors used is the sociological legal research and the normative legal research which approach the economic development in social economic zone in Sei Mangkei, the issues that happened in reality, and they analyze the related regulation in SEZ.Findings – The result thus obtained shows that legal certainty has not been realized completely which caused undevelopment of SEZ in Sei Mangkei. Besides the legal certainty factor, the unfinished infrastructure also caused the undevelopment, even though according to Act number 39 of 2009 regarding SEZ, an operated SEZ has fulfilled the needs and appropriateness of the infrastructure. In reality, Sei Mangkei SEZ, which has been operational, is not supported by the appropriateness of the infrastructure such as the port, train rail, hazardous waste material management facility, final disposal vessel, and also the issue of electricity and gas.Practical Implications – This result can help Central Government or Provincial Government in establishing the regulations that can provide the legal certainty in developing the SEZ in Sei Mangkei.Originality/Value – In addition to increasing the role of law in economic development understanding, this paper can be of legal and economic relevance. Keywords Role of law Special economic zone Economic development Citation Ginting, B., Sembiring, R., Siregar, M. and Abduh, A. (2018), "The Role of Law in Economic Development: To Develop a Special Economic Zone in Order to Build a National and Regional Economy", Proceedings of MICoMS 2017 (Emerald Reach Proceedings Series, Vol. 1), Emerald Publishing Limited, Bingley, pp. 209-214. https://doi.org/10.1108/978-1-78756-793-1-00012 Publisher: Emerald Publishing Limited Copyright © 2018, Emerald Publishing Limited License Published in the Emerald Reach Proceedings Series. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode 1. Introduction Economic development is the demand of the constitution to achieve the goal of the Republic of Indonesia, which is to improve social welfare for every citizen of Indonesia. Ideally, the development is sponsored by national financial sources, especially from State Budget. But in fact, the State Budget is incapable of covering the financial need of the development. For that, the Indonesian Government try to invite investors, both domestic and foreign, to be a part of national economic development. The effort to invite investors has been conducted since 1967 by establishing legal certainty in investment with direct investment legal framework, regulated in Act number 1 of 1967 regarding Foreign Investment. A year later, the Government enacted Act number 6 of 1968 regarding Domestic Investment to attract domestic investors to make direct investment in Indonesia. Since then, various facilities/conveniences have been promised by the law of direct investment. But there is some inequality between territories in direct investment which is mostly in Java, more than other territories. One of the government policies related to this issue is by establishing regional strategic areas, such as Free Port and Free Trade Areas (1970), Bonded Zone (1986), Industrial Zone (1989), Integrated Economic Development Area (KAPET) in 1996, and Special Economic Zone (SEZ) (2009). Those strategic areas are capable of increasing investment in various areas. But the issue of investment such as legal certainty, politic stability, bureaucracy, regional infrastructure sufficiency and qualification are still occurring, causing setback in creating proper investment environment. In 2009, the government enacted Act number 39 of 2009 regarding SEZ. It was furthermore responded by establishing 11 SEZs, Maloy Batuta Trans Kalimantan SEZ, Sorong SEZ, Morotai SEZ, Bitung SEZ, Palu SEZ, Mandalika SEZ, Tanjung Lesung SEZ, Tanjung Kelayang SEZ, Tanjung Api-Api SEZ, Sei Mangkei SEZ, and Arun Lhokseumawe SEZ. 2. Explanation 2.1 The role of law in economic development In improving the competence of the country, legal policy in Indonesia directs the law development to support the realization of continuance economic growth; to regulate issues regarding economy, especially business and industry; and also to create certainty in investment, especially law enforcement and protection law development is implemented with law renewal by still considering the plurality of legal system and the influence of globalization as the effort to increase the legal certainty and protection of human rights, with the environment which constantly changes and to answer the new issue brought by the changes (Sulistiyono, 2007). The role of law which is very important in economic life is regarding the ability to influence the certainty level between human in society. As stated by H.W. Robinson (Hadisumarto, 1993) modern economy sees that the expectations of individuals are the determinants of economic actions and because of that they are crucial in deciding the equilibrium of economy and the stability of the achieved equilibrium. The businessman, the sponsor, the land owner, the workers, and the consumers conducting the predicted activity will provide the maximum result. In the vibe of modern complex world, some of the result can be predicted. Nyhart (1964) stated the six concepts in law that have influence in economic development. The six concepts are: predictability, procedural ability, codification of the goal of legislation that can be seen as one codification of goals and intentions of a country, the balancing factor, and accommodation. The last factor, the sixth, the definition and the clarification of status. Besides the function of law as to provide predictability, it can be added that the function of law is also to provide firmness regarding the status of individuals and the objects in society. Similar issue is explained by Burgs (Theberge, 1980) saying that there are at least two types of quality of law which must be fulfilled for economic system to be functioned: stability and predictability. But between those two qualities, there is also a justice factor such as keeping similar treatment with government behavior pattern standard which is necessary to keep the market mechanism and prevent a too much bureaucracy. All this time, the main weakness in law faced by businessman is the legal uncertainty. Legal certainty is indeed necessary to calculate and anticipate the risk, for a country, legal certainty is even one of the most important factors in supporting the endurance of economy in a country (Himawan, 1998). In order make law adjustable for this situation, the government is responsible to make the law with sufficient dignity in responding to any demand necessary for economic development. Besides legal certainty, to handle the increasing need of efficiency, legal institutions must be able to play its crucial part or role in adjusting the ideas and condition which constantly develops (Chatamarrasjid, 2003). The success of SEZ in improving national and regional economy will be decided by the existence of proper law in providing legal certainty and efficiency in the management. 2.2 Concept and regulation of SEZ in Indonesia The term "Special Economic Zone" has a wide meaning since it can be used to explain many types of commercial zone. The industries such as Maquiladora, Mexico, and Shenzhen are SEZ, even though they have difference in the structure and measurement. This term is commonly known as modern iteration from free commercial zone, which was first established in 1959 in Shannon, Ireland (Damuri, 2015). According to World Bank, SEZ in any form is at least built with limited and separated area of customs, under one regulating entity, where it can be used by them located in the area (Akinci and Crittle, 2008). In other words, SEZ is a zone where the government expects to increase the economic growth through export and investment raise by providing many competitive conveniences in the zone. According to Act number 39 of 2009 regarding Special Economic Zone, SEZ is defined as a zone with certain boundary in Indonesia, established to implement the function of economy and to achieve certain facility. The operational definition brings the incentive aspect regarding certain facility provided by the government to investor in SEZ. According to Article 2 Act of Special Economic Zone, SEZ was developed with the preparation of zone having geo-economy and geo-strategy superiority and functioned to accommodate the activities of industry, export, import, and other activities having high economic values and high international competence. In Government Regulation number 2 of 2011, institutions of SEZ which are National Council, Sectored Council, and Administrator have been explained, where each has the role and position in running its duty. SEZ management is conducted by the Administrator and business institution that manage and also supervise regarding the physical building process of the SEZ in one place which has the consent of the President. The promised incentive in SEZ is more than the incentive given to other strategic economic zone as seen in Table 1. Table 1. Comparison of Investment Facility in Strategic Zones in Indonesia Facility FT2 KAPET KB KEK/SEZ 1. Facility of Institution tax income a. Investment allowance X v X V b. Quickened amortization X v X V c. Dividend tax X v X V d. Longer disadvantage compensation X v X V e. Holiday tax X x X V 2. Facility of tax income exemption article 22 import V vb V V 3. Value added and luxury good tax facility a. Uncollected value added tax of import V va V V b. Uncollected value added tax on domestic purchase V x V V c. Exemption on value added tax/luxury good tax V x V V d. Referral of the uncollected to the user of the facilities V va X V e. Giving back the value added tax to individual of international passport holder X x X V 4. Customs and excise tax facility a. Suspension of custom X vc V V b. Exemption of custom V x X V c. Exemption of excise V vd V V d. Suspension of custom Source: National Council of SEZ (2015). aGiven to the businessman in bonded zone (PDKB) in the territory of KAPET. bGiven to the businessman in bonded zone (PKB)/PDKB in the territory of KAPET. cGiven to PKB/PKB including PDKB in the territory of KAPET. dGiven to industry businessman in certain service in KAPET. To guarantee legal certainty in implementing SEZ, the government of Indonesia has issued legislations to respond Act number 39 of 2009 regarding SEZ such as the following: (1)In the aspect of institution: Presidential Decree number 8 of 2010 regarding National Council of Sectored Economic Zone, Presidential Regulation Number 33 of 2010 regarding national council and SEZ council, Presidential Regulation number 124 of 2012 regarding Alteration on Presidential regulation number 33 of 2010 regarding National Council and SEZ Council, Presidential regulation number 150 of 2014 regarding second Alteration on Presidential Regulation number 33 of 2010 of National Council and SEZ Council, and Presidential Decree of Province SEZ according to the established SEZ. (2)In implementing SEZ: Government regulation number 2 of 2011 regarding implementation of SEZ, Government Regulation number 100 of Alteration on Government Regulation number 2 of 2011 regarding SEZ, Regulation of city government number 7 of 2011 regarding the guidance of proposal in forming SEZ and Regulation of city government number 8 regarding the guidance of evaluation in forming SEZ. (3)In facility aspect of SEZ: Government Regulation number 96 of 2015 regarding facility and convenience in SEZ, Implementing Regulation number 96 of 2015 issued by certain ministry consisted of: fiscal (tax and custom); labor; land; immigration; goods traffic; and license convenience, and Financial Ministry Regulation number 104/PMK.010/2016 regarding tax, customs, and excise treatment in SEZ. 2.3. Legal certainty in SEZ development Legal certainty is a crucial factor to attract the investors to invest in SEZ. With legal certainty, investor can predict the investment by considering the conditions guaranteed in the existed legal norms. Based on the development of Sei Mangkei SEZ, it can be concluded that legal certainty has not been realized completely. In the explanation of Article 12 (1) Act number 39 of 2009 regarding SEZ, "must be ready to operate" means the fulfilment of infrastructure, human resource, and administration control tool. Sei Mangkei SEZ has been operated since 27 January 2015. But the supporting infrastructure of investment in and outside the sector has not completely built and was unable to function properly by the tenant. Some of the issues regarding Sei Mangkei SEZ supporting infrastructure are as follows: (1)The unfinished train rail from Bandar Tinggi Station to Kuala Tanjung Port of of ±21.5 km. (2)The unfinished building of Global Hub Kuala Tanjung Port. (3)The non-availability of accommodation to hold hazardous waste material. (4)The non-availability of final disposal vessel produced by the industries of SEZ. (5)The relatively expensive price of gas and electricity in Sei Mangkei SEZ. In order to accelerate the investment in SEZ, which can support national economic development, Government regulation number 96 of 2015 is issued regarding the Facility and Convenience in the SEZ (Government Regulation of Facility and Convenience in SEZ). But this regulation is not completely operated yet. PTPN 3 Medan as the developer of Sei Mangkei SEZ complained regarding the tax convenience which was actually a part regulated in the Government regulation regarding Facility and Convenience in SEZ, but in reality, the change of land status of Sei Mangkei SEZ from cultivation right to management right which has been put in the management right certificate number 1 of 2014, caused regional tax raise. The developer of Sei Mangkei SEZ finds that it is necessary to provide certain incentive from Regional government such as: reduction/exemption of property tax and duties on the rights and buildings to attract investors in the form of regional regulation for Sei Mangkei SEZ. 3. Conclusion and suggestion Law plays an important role in creating certainty and predictability in investment. Without the legal certainty assurance, the economy development is uneasy to be conducted, since the support is hard to get. Development and management of SEZ has not guaranteed complete and whole legal certainty. The experience in developing Sei Mangkei SEZ shows that legal certainty has not been realized completely. The issue of legal certainty also has not been completely realized regarding the facilities and investment incentive. The promised incentive by law has not been realized and the handling is complicated and bureaucratic. According to the above-mentioned conditions, it is suggested that the Central Government, the Provincial Government, the Regional Government, and the Management Institution, according to each authority, have to complete the unfinished infrastructure. Besides that, more systematic effort must be done to harmonize the policies regarding the SEZ management. References Akinci, & Crittle, 2008Akinci, G. & Crittle, J. (2008). Special Economic Zones: Performance, Lessons Learned, and Implications for Zone Development, Foreign Investment Advisory Service (FIAS) Occasional Paper. World Bank. Washington, D.C. pp. 9. Chatamarrasjid, A. (2003). Pendekatan Ekonomi Terhadap Hukum. Professor Inauguration Speech University of Yarsi, 4 October 2003, UI-Press, Jakarta. Damuri, R.Y. (2015). Kawasan Ekonomi Khusus dan Strategis di Indonesia: Tinjauan atas Peluang dan Permasalahan, Centre for Strategic and International Studies, Jakarta Hadisumarto. (1993). Sambutan Seminar Sehari Implikasi Reformasi Hukum Bisnis Terhadap Perekonomian Indonesia, organized by Magister Management Program of University of Indonesia. 8 Desember 1993. pp. 2. Himawan, C. (1998). "Mercusuar Hukum Bagi Pelaku Ekonomi", Kompas, 21 April 1998, pp. 9. Nylhart, J.D. (1964). Rule of Law and Economic Development, Massachussetts Institute of Technology, Cambridge. Sulistiyono, A. (2007). Pembangunan Hukum Ekonomi untuk Mendukung Pencapaian Visi Indonesia 2030. Professor Inauguration Speech in Economic Law. University of Sebelas Maret. Surakarta. 17 November 2007. pp. 12. Theberge, L.J. (1980). "Law and Economic Development". Journal of International Law and Policy, Vol. 9, pp. 231–238. All papers within this proceedings volume have been peer reviewed by the scientific committee of the Malikussaleh International Conference on Multidisciplinary Studies (MICoMS 2017). Corresponding author Ginting can be contacted at budiman_ginting59@yahoo.com Book Chapters Prelims Introduction Acknowledgement I Acknowledgement II The Effect of Job Satisfaction and Work Motivation on Organizational Commitment and Organizational Citizenship Behavior in BNI in the Working Area of Bank Indonesia Lhokseumawe The Effect of Work Motivation on the Employee Performance with Organization Citizenship Behavior as Intervening Variable at Bank Aceh Syariah Life-Cycle Performance of a Bridge Subjected to Multiple Heavy Vehicle Impacts The Efforts of Improving the Professionalism of Lecturers towards the Presentation and Change of KKNI within the University Environment in Aceh Morphological Process of Devayan: An Analysis of Morphological Tipology Effect of Freight Transportation for Regional Development in the North Zone of Aceh The Roles of Digital Democracy on Political Education for Young Generation Disorders of Sex Development: Ambiguous Genitalia and Partial Androgen Insensitivity Syndrome Difference Analysis of the Autonomy of Extended Regencies in Aceh Province Indonesia An analysis of Service Quality on Mustahiq Satification using the Kano Model (Case Study on Baitul Mal) Exploration and Morphological Characterization of Vegetative Part of Avocado at Bebesan Subdistrict Central Aceh District, Indonesia Poverty Effectiveness for the Maisir (Contest) in the City of Indonesian Aceh Province Measurement of Study Productivity and Evaluation Analysis by using the American Productivity Center (APC) Model at a Palm Oil Factory (Pks PT. Syaukath Sejahtera) The Development of an Independent Entrepreneurship Model Through Creative Economy for Women in Lhokseumawe City Regionalism of Aceh's Traditional Architecture at Bujang Salim Mosque at Krueng Geeukeuh, Aceh High Growth and Diameter of the Stem of Corn Plants (Zea May, S) with a Different Cropping Pattern Influence of Manufacture of Textiles, Clothing, and Leather and Manufacture of Paper, Printing, and Publishing on Economic Growth Land Erodibility and Land use Directions in Krueng Seulimum Watershed Aceh Province The Effect of Fermentation of the Peel of Arabica Coffee with Win Prob Probiotics on Crude Fiber Content and Fiber Fraction Teaching English International Lingua Franca (ELF) in ASEAN Economic Community Context: Teachers and Students Perspectives Animation as a Creative Industry: A Strategy to Build Creativity and Independence of Youth in Padang, West Sumatra Improving Production of Liquid Smoke from Candlenut Shell by Pyrolisis Process Interpersonal Communication of Commercial Sex Workers Transaction with Customers in Syariah Law Area in Indonesia Macrozoobentos Diversity Index as a Bioindicator in Krueng Cunda River to Support the Success of the Shrimp Agribusniness at Lhokseumawe City, Aceh The Examination Model of Aceh Commodity Export Firms' Performance The Role of Fishing Techniques with Tuah Teng on Food Security in Facing the Asean Economic Community Reconstruction of Aceh Cultural Identity in the Discourse of Aceh Language Lesson Books in Elementary School The Effect of Monosodium Glutamate (Msg) Administration to Pyramidal Cells Necrosis on Cerebral Cortex of Wistar Male Rats (Rattus Norvegicus) Personal Construct Experience of Tionghoa Community in Aceh Reality Study of Mineralogy Composition, Total, and Exchangable Content of K, Ca, and Mg of Volcanic Ash from Sinabung Mountain Eruption in North Sumatera, Indonesia The Role of Law in Economic Development: To Develop a Special Economic Zone in Order to Build a National and Regional Economy Model Corporate Social Responsibility Based on Local Wisdom in West Aceh Regency Recurrence of Intravenous Leiomyomatosis: A Rare Cause of the Obstruction of the Right Heart Single Mother Role in The Success of Their Children (Phenomenological Study of Single Women in Makassar City) Optimal Lot-Sizing Algorithms on at the in Subdistrict North of the Concept of Value with Economic Value of Study on on is the of in Regional Bank in Indonesia of and Children A Study from Indonesia Concept of Indonesia The of and of in Subdistrict Aceh The of Women in Local in Aceh Study at Provincial of Aceh Province the of 2014 to Personal the in Analysis of the Poverty of in Aceh of an Model Value on the of Syariah Based on Social in Asean Community in Indonesia: Analysis of of Based of Economic Development and to A on Production in Kuala Aceh and of Institution in Analysis of and Development Management of in High The Difference in the of City of City as a Creative City Through the of Cultural of from Indonesian of for Behavior of from with and Oil at North Indonesia, in A Study at an School in North Indonesia of for A in Malikussaleh University of and with and of Budget Aceh Regency Foreign Investment Aceh of Indonesia a of Based with The of of in the Krueng River Aceh Indonesia Analysis of the of and the Concept with a for Students in 1 Aceh of for Generation Education in Aceh Motivation of University Students and its with English of on for Liquid of and in in Aceh The between and of in the at a in Lhokseumawe in the 2017 Effect of Palm Oil on through Process and in The and the of in Law and of Communication for the Performance of Based on Production of in in Palm Oil An Analysis and of a of the Based on a of in the by of The of Management in for Students of at Malikussaleh University and of by Technology, and on Process and Effect of of of and Satisfaction of to of by on Service Development the The in the Financial of a in Indonesia: A and Morphological Characterization of in and of North Aceh Indonesia Model of of the National in North Province Index for Some of with to of With Concept of Security on

Czech Abstract: Jaký je význam pravniho statu v ekonomickem rozvoji z hlediska podnikatelských ekonomických teorii?English Abstract: What is the importance of rule of law in economic development from the perspective of entrepreneurial economic theories? Adam Smith argues that economic development is result of the division of labor, the extension of markets, and economies of scale within organization. Austrian economists argue that economic development is result of entrepreneurial decision-making. While Joseph Alois Schumpeter argues that economic development is result of creatively destructive entrepreneurial decision-making followed by innovations, Israel M. Kirzner argues that economic development is result of entrepreneurial discovery of new profit opportunities. In this paper, I explain both Joseph Alois Schumpeter’s notion of entrepreneurial decision-making and Israel M. Kirzner’s notion of entrepreneurial decision-making to analyze the importance of rule of law in economic development.

The existing literature on the role of formal law in economic development mainly focuses on the protective function of law. The dominant position of law and development scholars with expertise in Chinese law or economy downplays the role of formal law in China’s economic development. This chapter, however, demonstrates that there is still inadequate evidence to support this position. In addition to pointing out that there is a role for formal law in China’s economic development with respect to the enforcement of contracts and the protection of property rights, this chapter analyses the other roles of law. These include signaling, self-commitment, and coordination. These roles of formal law have varying degrees of impact in different countries depending upon their political economy. More importantly, it is the law that defines the role of the state or government in economic development. This chapter rejects the position that there is a role of the government in owning or managing SOEs or TVEs in China except for a period under distorted economic conditions. The role of the state, instead, should be in the provision of public goods including law. When the state moves in this direction, our research agenda will not only focus on the role of law in economic development but also emphasize development as freedom.

In developing the Business Judgment System for State-Owned Enterprises (SOEs, Persero) in Indonesian Economic Law, it is necessary to elaborate on the theory of the role of law in economic development. According to J.D. Mrs. Hart has three elements that must be developed in the legal system so that the law plays a role in economic development, namely predictability, stability, justice (fairness). The role of the law, basically refers to the main purpose of the law, which is to create an orderly society. Order and balance in society need to be achieved, so that human interests will be protected in achieving their goals. In general, the law functions to divide rights and obligations, regulate how to solve legal problems and maintain legal certainty. The role of the law basically refers to the main objective of the law, which is to create an orderly society. Order and balance in society need to be achieved, so that human interests will be protected in achieving their goals. In general, the law functions to divide rights and obligations, regulate how to solve legal problems and maintain legal certainty. The focus of this paper is the interaction of Indonesian corporate law in the Indonesian Economic Law system in the management of state-owned enterprises, as one of the corporations with legal status to be able to compete globally, because this principle is a universal principle. Corporate law and globalization interact in the same social space and interests. With these interactions, it allows various possibilities, such as integration, incoordination (partial merging), competition (each running alone), conflict (conflicting), and avoidance (one of the laws avoids the enforcement of other laws).

The study of the relationship between law and economic development goes back at least to the nineteenth century. It is a question that attracted the attention of classical thinkers like Marx and Weber. And there were some early efforts to craft policy in this area; for example, under the Raj, some English Utilitarians tried to put Jeremy Bentham’s ideas about law and economic progress into practice in India. But it was only after World War II that systematic and organized efforts to reform legal systems became part of the practice of international development agencies. Initially, development agencies turned to law as an instrument for state policy aimed at generating economic growth. Starting in the 1980s, interest in the role of law in economic development grew, but it was an interest in law more as a framework for market activity than as an instrument of state power. This book argues that, starting in the mid-1990s, development practitioners approached law in a fundamentally new way – as a correction for market failures and as a constitutive part of “development” itself. As a result, “the rule of law” has become significant not only as a tool of development policy, but as an objective for development policy in its own right. This book charts the history of this growing interest in the legal field, explores the shifting rationales behind development policy initiatives, and explores in detail the newest – and most surprising – of these rationales. To do that, we trace the history of a body of ideas about law and economic development that have been employed not just by academics but also by development practitioners responsible for allocating funds and designing projects. In this introduction, we refer to that body of ideas as law and development doctrine. Although this doctrine has academic roots in economic and legal theory, it is a practical working tool of development agencies.

This study examines the role of law in regulating business competition to develop the economy is needed. The purpose of this research is to find out and reveal the role of law in developing the economy. This research method uses normative legal research method, it is intended to identify and reveal the role of law in economic development. The results of this study indicate that the role of law in regulating business competition to develop the economy is very much needed so that business competition runs orderly and does not violate the rights of fellow business actors. The role of this law is manifested in government policies required by developing countries far beyond the needs of the developed industrial countries which have been established. The developed countries already have legal mechanisms in place to accommodate changes in their societies. Meanwhile, developing countries are not like that. In fact, the hopes and desires of people in developing countries for the realization of changes that bring about a greater improvement in living standards exceed the expectations needed by people in developed countries. The growth and economic development of the Indonesian state and in the world will be much influenced by fair business competition among business actors, both now and in the future. While, the healthy competition will be determined by legal policies in economic development; legal policies in business competition; politics of law formation and decision-making processes in the formation of business competition law

A large body of scholarship has emerged to examine specific aspects of the relationship between international law and economic development (although comprehensive treatments of this question are somewhat rare). This scholarship covers a diverse array of academic projects and subfields of international law, including international development law, international economic law, and international human rights law. A typical research topic in this field concerns the potential contribution of international investment protections to a country’s economic development (see Law and Economic Development and International Trade). Some scholars have examined this question, and the more general impact of international law on economic development, through the methods of economic theory (see International Law and Economic Theory). Others have focused on the constraints of international law on domestic policymaking, highlighting the specific concerns of developing countries (see Historical and Third World Approaches to International Law). Yet others have examined development policies and objectives, including economic goals, through international human rights law (see Human Rights and Economic Development). The role of international law in economic development is also discussed in area studies, in particular, with regard to China and other East Asian countries. These countries are commonly seen to have developed economically in spite of their selective compliance with international norms (see Area Studies).

At present, the total mileage of Anhui's high-speed rail ranks first in China. The high-speed rail has brought a new development path to Anhui's economy, but it is also accompanied by challenges. Hefei City, located in the center of Anhui, has the largest high-speed rail station in Anhui - Hefei South Railway Station. In the future, it will also form a super "clock-shaped" high-speed rail radiation network pattern in 13 directions. Based on the data of Anhui's urban economic development, this project adopts the methods of comparative analysis and literature research, and uses dynamic comparison, content analysis, and bibliometric methods to obtain the process and law of economic development in Hefei, Anhui under the influence of high-speed rail economy, and the impact on Hefei's economic development. The current situation and direction are analyzed and summarized, and on this basis, the path and countermeasures for further reasonable development of Hefei in the era of high-speed rail economy are proposed.

<div class="WordSection1"><p><em>Indonesia is a state that openly engages with the opportunities and challenges of global economic liberalization. Several issues arise when international legal interventions clash with the identity, values, and interests of indonesian nation. Therefore, this study aimed to strengthen the national foundation in facing globalization and and ushering in a prosperous era for Indonesia. This doctrinal study was conducted using a conceptual approach, with the perspective regarding the role of law in economic development. It also examined the importance of robust legal foundation to maintain national stability in the midst of global economic changes. The results showed that national legal development was crucial to realizing aspirations for unity, sovereignty, justice, and prosperity. Four pillars of MPR-RI could serve as a guide for every citizen to foster nationalism in the midst of rapid globalization. Furthermore, the spirit of legal foundation in four pillars could guide the formulation of national policies that accommodated global interests without forsaking the identity, values, and interests of indonesian nation. The idea of four pillars was also developed as the basis for the philosophy of national economic legal development. The results were expected to guide all stakeholders in constructing economic law in Indonesia, thereby achieving prosperity for the entire population.</em><em></em></p></div><p><em><br clear="all" /></em></p>

<p>The significance of poverty consequences in contemporary social system and the role of economic development in consolidating the basis of international peace and security led to conduct a research on factors affecting the establishment of development. The question - on the one hand–is that: what's the role of International law in economic development and -on the other hand- what's the relationship between observance of regulations of international law by governments and their economic development? Based on the theory of the formation of international law mechanisms derived from it must reflect Humanity's collective demands and in concrete manifestation must found norms that ensure and deepen human rights in the International scope. However, since the governments are considered the first and the most important subject of international law, the achievements obtained by international law cannot be apart from the governments actions, so that national sovereignties normativism and observance of regulations of international law- in line with multiple characteristics necessary for achieving economic development- are pivotal factors in the economic development.</p>

Legislation plays an important role in the economic development of a nation, but that the law can play a role in providing legal certainty for economic operators, the government as policy makers in the field of law. Determination of investment legislation in an effort to create a climate of investment, beginning with the presence of the Capital Market Law normatively accommodates the various interests of foreign investors. For example, there is the provision and maintenance of non-discrimination given to local entrepreneurs or the arena of domestic market share, investment protection and guarantees against nationalization and export risk threats, as well as the guarantee of the right to transfer profits or dividends. And the right to carry out legal settlement through international arbitration. Law in economic development, there are five elements that must be developed in the economic development of the nation, namely stability, prediction, justice, education, and in particular the development of law graduates (special development ability of the prosecutor) and the law should also have the ability to give an exact picture in situations or a future relationship conducted in the present. Both have procedural capability. Legislation that directly or indirectly impact on the economy and the legal system must provide a balance in awareness efforts to implement economic development. This is where the law becomes a very important factor in relation to the legal protection afforded by a country for investment activities. As revealed by Erman Rajagukguk that the main factor for the law can play a role in economic development is whether the law is able to create "stability", "predictability" and "fairness". The first two are the prerequisites for any economic system functioning. Included in the stability function (stability) is a potential law to balance and accommodate competing interests. The legal system and legal regulations to provide protection will create predictability, fairness and efficiency for investors to invest their capital. Act Investment in efforts to create an investment climate begins with Act Capital Markets normatively accommodate the interests of foreign investors and the legal concept as the basis for economic development, namely predictability, the ability procedural codification goals, education, the balance, the definition and clarity of status and accommodation

The purpose of this study is to examine the relationship between law and economics, not a one-way relationship but a reciprocal and mutually influencing relationship. In fact, it is often said that the legal relationship with the economy is like two sides of a coin that cannot enter and complement each other. The role of law in economic development can be briefly interpreted as an effort to increase per capita income continuously and gradually. The research method uses the type of library research, normative juridical research approach, data sources from secondary data and qualitative data analysis. The results show that the economic order must be instrumental in overcoming the problems that exist in every economic society, namely economic functions, economic activities and economic order that lead to a policy. Economic law is needed as a driver to balance the increase in economic activity so that its implementation does not violate the interests of the general public. The role of law in development has a more comprehensive and basic meaning than the term legal development or legal reform. Legal development refers more to efficiency, in the sense of increasing legal efficiency. "Legal reform" contains the meaning of compiling a legal system to adapt to changes in society

The problem of the economic development in Indonesia lies in the local wisdom-based tourism sector that has not been implemented optimally. The lack of empowerment of the indigenous peoples in their regional economic development is exacerbated by the lack of regulations in the regions. This research focuses on studying the role of law in economic development based on local wisdom of indigenous peoples in Bayan District, North Lombok Regency. This is an empirical legal research (socio legal research) which analyzes facts obtained from observations in the field to find out how the law is actually implemented in the field. This study concludes that the Bayan indigenous people in Bayan District, North Lombok Regency have an active role in economic development in their area, so that regional regulations are needed that are synchronous and do not overlap with other policies and empower local communities so that development goes hand in hand with preserving natural resources. This is in order to specifically regulate the Indonesian economy based on local wisdom as a form of the economic development of the people based on Pancasila.

China’s rapid rise to become the second largest economy in the world is nothing short of extraordinary. When economic reforms took off in the late 1970s, China had been without formal criminal law for three decades. China’s economic development since the launch of the reform period has occurred directly alongside the development of its criminal law, but the academic literature has failed to ask what role criminal law plays in China’s impressive growth.This Article argues that not only has the People’s Republic of China leadership historically used criminal law in service of economic ends but also, going forward, criminal law will likely play a multifaceted role in the leadership’s strategy to sustain growth. This inquiry is particularly timely on the heels of a once-a-decade leadership transition and as China’s ability to maintain a robust growth rate is facing rising skepticism.Looking beyond China, the law and development literature more generally has also failed to seriously discuss criminal law. At a time when many are rethinking the role of law in economic development, it is worth broadening the discussion to include criminal law. China is an instructive test case to begin that conversation.

The role of law in economic development of a nation is something that cannot be ignored its existence. So it is very obvious, if the law of a nation is effective, economic development would be easy to implement. But otherwise if the law has not effective function, it can definitely be an adverse impact on economic development. This condition also exists to Indonesia as a country which is still developing the economic area. Moreover, when Indonesia declared in its constitution as a legal state (rechtstaat). From this it is also implied that Indonesia wants two things: Firstly, the law is expected to function, and secondly, the law can serve, then economic development would be easy to be realized.The economic nationalism spirit in the globalization era shows increasing realization of the urgency to be the national economy which is strong, tough and independent. Economic Democracy is based on the popular and family, as well as cooperative efforts animates economic behavior of individuals and communities. Thus Indonesia Economic Law in the form of the Margin of Appreciation becomes benchmark for the justification of the legal norms which is enforced so the core values of Pancasila as the national ideology is kinship with the community life ideal form in society, is society kinship, so in the field of economics, Pancasila ideology wants kinship (familial Economic Democracy Article 33 of the 1945 Constitution), which is realized through the welfare state.Keywords: Law, Basis, Economic