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Lobel - The Fall of Regulation and the Rise of Governance in Contemporary Legal Thought

Lobel - The Fall of Regulation and the Rise of Governance in Contemporary Legal Thought

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Published by Juan I. Recabeitia

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Published by: Juan I. Recabeitia on Sep 01, 2011
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12/10/2012

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Legal Studies Research Paper SeriesResearch Paper No. 07-27December 2005T
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ALL OF
EGULATION AND THE
ISE OF
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OVERNANCEIN
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ONTEMPORARY
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EGAL
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Orly Lobel
This paper can be downloaded without charge from theSocial Science Research Network Electronic Paper Collection:http://ssrn.com/abstract=723761
 
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 Article
The Renew Deal: The Fall of Regulationand the Rise of Governance inContemporary Legal Thought
Orly Lobel
 †
 
Introduction..................................................................................1I. The Spirit of Renewal in Contemporary LegalThought...............................................................................1II. The Push and Pull for Renewal.........................................1 A. The Competing Logics of the Renew Deal: Clos-ing the Gap or Leading the Way.................................1B. External Push Factors: Law Follows the Politi-cal Economy.................................................................1C. The Internal Pull: The Directive of LegalThought........................................................................1D. Cycles of Renewal........................................................1Table 1: Coexisting Rationales for a Paradigm Shift..................1III. The Organizing Principles of the Renew Deal Gov-ernance Model.....................................................................1 A. Participation and Partnership....................................1B. Collaboration................................................................1C. Diversity and Competition..........................................1D. Decentralization and Subsidiarity..............................1E. Integration of Policy Domains.....................................1F. Flexibility and Noncoerciveness (or: Softness-in-Law)..............................................................................1G. Fallibility, Adaptability, and Dynamic Learning.......1
For their comments and suggestions, I thank On Amir, YochaiBenkler, Duncan Kennedy, Jerry Mashaw, Martha Minow, Susan Rose- Ackerman, Bill Simon, Henry Steiner, Gunther Teubner, David Trubek,Louise Trubek, and Lucie White, as well as the participants in workshops atHarvard Law School, Wisconsin, Northeastern, Yale, the Kennedy School of Government, the Law and Society Association, and the Yale/Stanford JuniorFaculty Forum 2004.
 
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THE RENEW DEAL
263H. Law as Competence and Orchestration......................1Table 2: From Regulation to Governance....................................1IV. Three Emerging Domains in Governance.........................1 A. The New Workplace.....................................................1B. Civic Environmentalism..............................................1C. E-Governance and Cyber-Democracy.........................1 V. Governance as Theoretical Hybridization.........................1 A. The Third Way Promise...............................................1B. Regulatory and Market Failures Abound...................1C. Reconstruction.............................................................1 VI. Central Normative Challenges..........................................1 A. Addition vs. Substitution: The Regulatory Modelas Compatible with the Governance Model................1B. Scarce Resources: Expertise, Experience, andSocial Energy...............................................................1C. Accounting for Power in a Nonhierarchical Col-laborative Environment...............................................1 VII. Conclusion: Governance and Democratic Thoery: Be-tween Efficiency, Legitimacy, and Fairness......................1The legal field is at a critical moment of renewal and rein-vention for the twenty-first century. In an analytical tour deforce, contemporary legal thought is promoting a shift from thetraditional New Deal regulatory era to a “Renew Deal” govern-ance paradigm. Different schools of thought within legal aca-demia are breaking from conventional models of regulation,administration, and adjudication, and introducing a new re-gime for a new century. Pointing to the false dilemma betweencentralized regulation and deregulatory devolution, there is agrowing consensus in legal scholarship that innovative ap-proaches to law, lawmaking, and lawyering are possible andnecessary. At the same time, a myriad of policy initiatives indifferent fields are employing new regulatory approaches in le-gal practice that reflect this theoretical vision. Administrativeagencies at the federal and state levels are increasingly pro-moting outreach programs and issuing nonbinding guidelinesin lieu of their traditional top-down rule promulgation, imple-mentation, and enforcement activities. New legislation in areassuch as eco-management and information technology providesopportunities for private parties to opt out of the conventionallegal regime and manage their environment through collabora-tive and dynamic planning. Courts and administrators increas-ingly rely on voluntary compliance as a defense against liability

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