The Emperor's Law Stops at the Village Gate: Questioning the Primacy of Formal Institutions in Vietnam's Land Law Reform

Abstract:This paper examines whether Vietnam's experience in reforming its land law supports or contradicts the view that institutional change, in particular the formalization of institutions, is a prerequisite to successful economic growth. The paper explores the reasons for slow, incremental and partial land law reform and analyses the complex interaction between formal and informal institutions on land rights in Vietnam. Using the country as a case study, the paper argues that effective institutions are not preconditions for economic growth; rather institutions evolve alongside economic change in a non-linear, uneven process shaped by interactions between formal and informal institutions. The policy implication is that calls for "good governance" reform or for "strengthening the rule of law" are usually too broad be helpful or even realistic.