Liberal Studies Essay Example for Free

Liberal Studies Essay How do economic prosperity and rule of law depend on each other? It is doubtless that economic prosperity and rule of law are indivisible. And to answer how they depend on each other, stating the definition of ‘economic prosperity’ and ‘rule of law’ is inevitable. ‘Economic prosperity’ means that overall, the economy is doing well and most people have sufficient income for essentials and perhaps a little extra. It means that businesses are hiring and jobs are relatively easy to get. However, it does not mean that everyone has a job or that everyone is well off. On the other hand, the ‘rule of law’ means that the law should govern by limiting all conduct and behavior of all people and organizations in the society. Economic prosperity depends on the rule of law. One of the major functions of the rule of law is maintaining social stability. It is a well-known fact that investors and business men tend to invest their money on a stable, peaceful and well-ordered society. The reason is that in a more stable place, with fewer disputes and a well-established legal system, their money will be safer. This enhances economic prosperity. Moreover, in the Basic Law, it is clearly stated that people hold the right of private ownership of property, which means that the efforts of their work and the fruits of production are enjoyed exclusively by themselves. Hence, people are encouraged to work harder for their own benefits and create wealth. This promotes sustained economic growth and long-term prosperity. Also, even before the unification, Hong Kong has always been a famous free port in the world. In accordance to the Basic Law, Hong Kong shall take the low tax policy previously pursued in Hong Kong as reference to enact laws on its own concerning types of taxes, tax rates, tax reductions, allowances and exemptions, and other matters of taxation. Thus, the Hong Kong government does not set trade barriers such as customs tariff and quota on most imported and exported goods. Since no trade barriers are set, more products will flow in Hong Kong and consumers can choose from greater varieties of products. In addition, cons umers can buy products of higher quality but with lower prices. This stimulates consumption, which hopefully leads to an economic growth. In short, the free trade policy has contributed a lot to the overall economic development of Hong Kong. Likewise, the rule of law deals with corruptions. Under the principle of the rule of law, the law is above everything, even the government. Corruption and cronyism discourage domestic and foreign investment. The rule of law eradicates these problems and protects the economy. Simultaneously, the rule of law also depends on economic prosperity. How so? When the economy is prosperous, as stated above, most people have adequate income for daily necessities and perhaps, a little extra. Generally, businesses are hiring and jobs are relatively easy to get. In that case, people have less complains about the government and the society is likely to be more stable. In simpler words, economic prosperity stabilizes the society. Furthermore, when the economy is doing well, hopefully people is going to have more disposable income for consumption, investments etc. So, a prosperous economy will create demand for more protection of property rights, and rule of law. Maintaining the supremacy of the judicial and the rule of law requires resources. A well-doing economy provides more resources for the judiciary to increase the efficiency and effectiveness of legal institutions, including supporting the introduction of modern facilities, case management practices, information sharing, training of judges and other court personnel, and stronger mechanisms to ensure transparency and accountability. This further ensures that the court and the law are supreme. The rule of law is secured in consequence. In my opinion, the degree of dependence of economic prosperity on the rule of law is way more than that of the rule of law on economic prosperity. Nevertheless, it is not the main focus of the question, which casts doubt on how the two depend on each other, but not the extent. In conclusion, it is apparent that economic prosperity and rule of law depend on each other a lot. Without the rule of law, firstly, people do not have the right of private ownership of property, which obviously is going to cause many disputes in the community since the result of the hard work of individuals may be taken away from them. Secondly, the free trade policy of Hong Kong since the reign of the British Empire may also lose, which will severely affect the overall economic well-being of Hong Kong consequently. Thirdly, the rule of law eradicates corruptions and relevant activities which deteriorate the economy. From these, we can see how economic prosperity depends on the rule of law. A place could never achieve a prosperous economy if there is no rule of law. In a similar way, without a prosperous economy, the rule of law would definitely not be in good state too. First, the society is going to be more stable as citizens hold less complains about the government. Second, since generally the economy is doing well, it is doubtless that people will have more disposable income thus promote consumption and other business activities, eventually stimulating the economy. Plus, to maintain and secure both judicial supremacy and the rule of law requires resources. Economic prosperity provides those resources to the judiciary. No wonder why people said the rule of law relies on economic prosperity. Last but not least, economic prosperity depends on the rule of law, and vice versa. To have the two is the key to a successful country, where economic development and democracy is balanced.