Law reform encompasses movements to renew, introduce or deny laws for justice or the economy. Governments establish committees to measure effects of laws and recommend action. Tort, drug and financial regulation are examples. Tort reform aims to reduce liability insurance premiums for doctors by imposing legal limits on damages awarded to victims. Drug reform advocates suggest reducing penalties for end-users or ending prohibition. Financial regulation advocates argue that stronger supervisory mechanisms increase investor security and lead to positive economic effects.
Law reform is a collective term for the various movements to renew, introduce or deny laws in the interest of justice or the economy. There are many different movements that encompass law reform. Typically, governments will have specially established committees to measure the effects of existing and potential laws and report back to the respective legislative body of government with recommendations on how they should or should not act in addressing the problem. Liability reform, drug reform, and financial regulation are three prominent examples of law reform that are commonly discussed.
Tort reform is a type of law reform that is typically discussed in the context of the medical industry. The goal of the tort reform is to reduce the expensive liability insurance premiums that doctors are required to pay to protect themselves against malpractice charges. Advocates of tort reform argue that taking steps such as imposing a legal limit on the damages awarded to victims for pain and suffering will reduce the inherent risk of substantial medical malpractice compensation. Thus, insurance premiums would be lowered and with that medical costs for patients would be lowered across the board.
Penalty reform for laws prohibiting the possession and sale of controlled substances is another type of law reform. There are a wide variety of suggestions that drug reform advocates have made from simply reducing penalties for end-users convicted of possession of a controlled substance to ending the prohibition of those controlled substances. Proponents of ending prohibition argue that by eliminating criminal penalties for possession of such substances and allowing the government to regulate their use – just as alcohol is regulated in most countries – there would be no black market for such products. By removing the black market, criminals would be deprived of the ability to make money by selling controlled substances, and the violence surrounding drug trafficking would be eliminated.
Another important problem of the legislative reform is that of the regulation of the industry, above all of the financial markets. While some argue that deregulating industry results in greater economic freedom and a greater ability to increase profits, financial scandals involving global corporations in the early 2000s drove worldwide sentiment toward more regulation. Advocates of increased regulation of the financial sector argue that by implementing stronger supervisory mechanisms, investors can feel more secure in their investments. As a result, investments will increase and, consequently, the positive economic effects will plummet.
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