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Reform Multiplier

Chicago, USA 27 June 2024 – 29 June 2024

Bakhtawar Ali (Aix-Marseilles School of Economics)

E6 Law and Development
Chair: Jun Goto
Room 0021
Economics / Institutions and organizations in political economy

Abstract

How and when does a reform trigger a cascading effect? This paper provides evidence that a judge selection reform in Pakistan, which shifted the appointment power of judges from the government to a committee of judges, had a multiplier effect on pro-government rulings in the decade following its implementation. As the first generation of committee-appointed judges (first-degree of separation from the government) is replaced by the second generation of committee appointees (second-degree of separation from the government), the reform's effect compounds. Nevertheless, as the reform amplifies anti-government rulings, it also increases the concentration of judges hired from a few select law firms. Despite the rise in judges hiring their former colleagues from law firms where they previously practiced as attorneys, there is no observable decline in the quality of judicial decisions. Rulings based on case merits and adherence to due process of law rise with each degree of separation from government appointments. Selection effects of second-generation judges drawing talent from top law schools emerge as a key contributor behind the reform multiplier effect. Overall, our results underscore that measures increasing the independence of the judiciary can have enduring positive effects on judicial autonomy and decision quality, even when they concurrently alter the composition of the judicial elite by making it concentrated.

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