A single framework governing secured transactions? Comparative reflections

The chapter takes as a starting point that, whereas there is a growing body of evidence on the economic impact of secured transactions reforms, there are different schools of thoughts as to what legal elements are actually essential for economic benefits to be reaped. This suggests that secured transactions law is an area where a good deal of complexity and inefficiency exists worldwide. The chapter focuses on one aspect of the secured transactions legal regime over which there is perhaps the greatest divergence of views and at times a good deal of misunderstanding: the scope of the regime. The chapter begins by listing four different objectives that policy-makers may seek to achieve by adopting a particular approach to the scope of the legal framework, and then reviews these objectives in a number of jurisdictions which have conducted reform or are planning to do so. The chapter shows that there are subtle differences in the way the four objectives are implemented. Not only have very few countries attempted to fulfil all four objectives at once, but their approach has been different. Policy objectives are defined, and then revisited, subject to internal and external influences.