Ep. 59 - Reinventing Insolvency Law in Emerging Economies

Insolvency law plays a crucial role in the economy, facilitating the rescue of economically viable enterprises while promoting the value-preserving liquidation of non-viable firms. In his recent book titled ‘Reinventing Insolvency Law in Emerging Economies’ (CUP 2024), Professor Aurelio Gurrea-Martínez, Singapore Management University, observes that many emerging markets and developing economies lack efficient insolvency frameworks. He argues that “the failure of insolvency law in many emerging economies is mainly due to the design of an insolvency legislation that is not tailored to the market and institutional environment generally existing in emerging economies.” The book ultimately proposes that insolvency law needs to be ‘reinvented’ in emerging economies.