State Intervention and The Principle of Subsidiarity in Peru

Abstract

The Peruvian economic system has evolved into what we have currently known as a social market economy linked to the principle of subsidiarity regulated by the state body INDECOPI (National Institute for the Defence of Competition and the Protection of Intellectual Property), whose function is to supervise unfair competition activities, provide consumer protection, promote free competition and enforce the principle of efficiency; These norms formulate a set of limits that allow the State to participate as an oversight body but not to be part of business activities unless it is for welfare purposes. Consequently, the proportionality test was established in order to regulate the State's entrepreneurial activity, which verifies the subsidiary nature of the entrepreneurial activity that the State plans to carry out and allows it to intervene in the market only if the private supply does not meet the demand or if there is no supply from the private sector.

Keywords

• comparative law
• economy
• industrial management
• markets
• constitutional law