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alqabasEconomy By د. فاطمه الشريعان

Legislative Inflation: When an Excess of Laws Becomes a Burden

Legislative Inflation: When an Excess of Laws Becomes a Burden

The strength of a state’s rule of law is often measured by the volume of its legislation, to the point that the enactment of a new law is viewed as evidence of legislative development and responsiveness to changing circumstances. However, this perspective is not entirely accurate. Just as the absence of legislation can create a legal vacuum, an excess of legislation can create a different kind of vacuum, characterized by a lack of clarity and stability in legal rules. In this context, legal scholarship has identified a phenomenon known as “legislative inflation,” where an abundance of legal provisions transforms from a means of achieving regulation into a source of ambiguity and complexity. Provisions may overlap or intersect, leading to divergent interpretations and increased confusion rather than clarity.

The impacts of this problem become clearer in the investment environment. Investors do not seek a multitude of laws; rather, they seek a stable, clear, and predictable legal system. Legal certainty is one of the most important elements in attracting investment, as it enables investors to anticipate their rights and obligations in advance, reduces compliance costs, and limits risks arising from ambiguity or differing interpretations. Conversely, an environment where rules change constantly or where multiple regulatory authorities exist can create hesitation, even if the legislation was originally intended to protect and regulate the market.

This issue is particularly evident in the Kuwaiti business environment, where foreign investors face not a shortage of legislation, but a burden in identifying the applicable legal rules. Their journey begins with the Commercial Law, followed by the Companies Law, the Commercial Agencies Law, the Commercial Register Law, and, on the other hand, the Law for the Encouragement of Direct Investment, in addition to executive regulations, decisions, and directives issued by competent authorities. The situation is further complicated by overlaps or discrepancies in the scope of application of some of these laws, forcing investors to consult multiple legal references to understand a single transaction.

Consequently, investors seek clarity and ease of access to the law more than they seek a large number of laws. The more an investor needs to navigate scattered legislation to understand a single issue, the more difficult it becomes to conduct business, and the weaker the legal certainty, which is one of the key elements for attracting investment. This is not meant to diminish the importance of legislation or to advocate for reduced legal regulation, but rather to emphasize that the quality of legislation remains more important than its quantity. Successful legislation is not the most numerous or detailed, but the clearest, most consistent, and most applicable. Law exists to achieve legal security, not to add further complexity to the relationships it regulates.

Therefore, the importance of periodic legislative review emerges. The goal should not be to add new provisions whenever a problem arises, but to re-evaluate the legal system, simplify it, eliminate redundancies, address conflicts, and unify regulatory references as much as possible. True legislative development is not measured by the number of laws enacted, but by their ability to achieve clarity, stability, and efficiency.

Ironically, legislative inflation may make the application of the principle “no one is excused from ignorance of the law” more difficult in practice. This is not due to a flaw in the principle itself, but rather due to the sheer size and complexity of the legislative system, making it increasingly arduous even for specialists to grasp all its details. Just as “silence can be more eloquent than much speech,” a smaller number of well-crafted laws may be more effective than an abundance of scattered provisions. When texts and legislation multiply without controls, they do not produce greater certainty; rather, they produce greater uncertainty.

Dr. Fatima Al-Shuaian

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