Nobel laureate Eric Muskin: China needs good legal supervision

On November 18, China Law Summit Forum 2019 Zhihe forum was held in Shanghai. Eric Maskin, a Nobel Laureate in economics and a professor at Adams University in the Department of economics at Harvard University, said at the forum that it is more necessary to intervene in advance “to prevent trouble before it happens”.
2019 is a special year, which is not only the 70th anniversary of the founding of new China, but also the 40th anniversary of the restoration of China’s lawyer system.
At this point, how can China’s legal service industry achieve “evergreen”? What is the future development trend of the legal industry? How can it coordinate with the development of China’s financial market to avoid financial crisis?
On November 18, China Law Summit Forum 2019 Zhihe forum was held in Shanghai. Eric Maskin, a Nobel Laureate in economics and a professor at Adams University in the Department of economics at Harvard University, said at the forum that it is more necessary to intervene in advance “to prevent trouble before it happens”. Ten years ago, China’s economy was immune from the impact of the financial crisis. To avoid more financial crises, China should do a good job in legal supervision in advance and balance the innovation and stability of the financial system.
Eric Maskin, Nobel Laureate in economics and professor of Adams University, Department of economics, Harvard University
“The risk or crisis of financial market is not only because of irrational, panic or immoral behavior. The financial crisis happened because of an important externality, that is, the banks (and other financial institutions) did not consider the risk that leverage may bring to other financial institutions. ” Eric Maskin said that in addition to the rescue of troubled financial institutions, it is more important to have prior legal supervision to prevent the occurrence of crisis.
“A well-designed regulatory system can prevent many crises, but we cannot hope to innovate while avoiding the credit crisis completely.” He pointed out that compared with the U.S. financial system before the last financial crisis, China’s financial system is relatively new, and at the beginning it was in a situation of high supervision. Only in the process of development, it gradually relaxed the supervision slightly, which is in danger of going too fast. China’s deregulation of its financial system depends on how it is deregulated and how it is deregulated. It is important for China to avoid the financial crisis and do a good job in legal supervision.
At the meeting, ashy NANDA, a professor at Harvard Business School and a keynote professor of law firm leadership and development strategy China course, expressed her views on “the secrets of the success of the world’s top law firms”. He believes that the success of top firms lies in the consistent adherence to some “obvious” basic principles: clear development strategy, consistency of internal organizational culture and strategy, and leadership of firm managers from direction to implementation.
Ashley NANDA, Professor of Harvard Business School and lecturer of law firm leadership and development strategy China course
In addition, Hong Zuyun, founder and CEO of Zhihe, shared the “six key words” that the legal market needs to face: first, China’s economy. The high-quality development of China’s economy and the overall pattern of opening to the outside world provide a major development opportunity for the professionalization, marketization and internationalization of Chinese lawyers. Second, law firm management. The understanding of management value in the lawyer industry is waking up. Law firms committed to “becoming bigger and stronger” in the market are moving towards the direction of “platform” and “ecological”, investing in young lawyers and future development. Third, cross-border players. Legal service is no longer the patent of lawyers. The rise of alternative legal service providers represented by the “four major” is a phenomenon in the global legal market. Fourth, legal science and technology. At present, legal technology has gradually infiltrated into legal services, and the utilization rate of legal services will continue to rise in the future. How to enable legal technology for the lawyer industry is also an issue that cannot be ignored in the industry at present. Fifth, market innovation. Legal affairs and lawyers work in different ways. The key lies in understanding the needs of the clients. Sixth, ranking. The existence of legal rating agencies opens a door for people to understand the legal service industry, law firms and lawyers. The list provides some references from the perspective of market and data.

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