“Constitutional” public policy making in context: the peruvian experience

Abstract

In this article the authors will identify how the reform of the “new” Peruvian Constitution policy was implemented, with particular emphasis on the influence of the Constitutional Court of Peru. At last, using the theory of public choice, we will present three cases that allow them to conclude that the Peruvian Constitution does not reflect a particular ideology but rather a mix of values that can be opportunistically used by interest groups. The first example deals with the regulation of the education, health and social security sectors. In this case, the authors conclude that the regulation is mercantilist. The second example deals with the “stabilization acts” for foreign investment contracts. In practice, this provision was used to concede a legal monopoly to Telefonica, a telecommunications company. Finally, our third case refers to the treatment of natural resources. In accordance to the Constitution, natural resources are property of the State, not the owner of the land. This anti-market provision has caused economic losses and social conflicts.

Keywords

• public policy making
• public choice
• institutional framework
• interest groups.