Editor's note: Branislav
Hock (@bran_hock) is PhD Researcher at the Tilburg Law and Economics Center at Tilburg
University. His areas of interests are transnational regulation of corruption, public
procurement, extraterritoriality, compliance, law and economics, and private
ordering. Author can be contacted via email: b.hock@uvt.nl.
This blog post is based on a paper
co-authored with Suren Gomtsian, Annemarie Balvert, and Oguz Kirman.
Game-changers that lead to financial
success, political revolutions, or innovation, do not come “out of the blue”;
they come from a logical sequence of events supported by well-functioning
institutions. Many of these game changers originate from transnational private
actors—such as business and sport associations—that produce positive spillover
effects on the economy. In a recent paper forthcoming
in the Yale Journal of International Law, using the example of FIFA, football’s
world-governing body, with co-authors Suren Gomtsian, Annemarie Balvert, and
Oguz Kirman, we show that the success of private associations in creating and
maintaining private legal order depends on the ability to offer better
institutions than their public alternatives do. While financial scandals and
other global problems that relate to the functioning of these private member
associations may call for public interventions, such interventions, in most
cases, should aim to improve private orders rather than replace them. More...