Índices, libertad económica y las necesarias reformas de mercado a implementar

Abstract

It’s the market’s social economy, which its found consigned in article 58 of the Political Constitution of Peru, nevertheless, without a clear idea multiple interpretations are proposed to market’s social economy consecrated by the Constitution, through price control, incorporating of economic crimes, restrictions on economic activities or generating greater regulations, when rather market reforms should be implemented for the long-awaited economic reactivation in a complicated context such as the current one. It is because of this that we should implement an appropriate tutoring of the market economy in our country; if we review the Heritage Index of Economic Freedom, we will notice that we have fallen behind in that matter.   It is surprising that the government plans of the various parties in the recent elections have not duly focused on this important mechanism for increasing tax collection. Rather, they focused on other aspects, such as the expansion of the tax base and the reduction of evasion and elusion, since greater and better private investment increases economic growth, which generates more jobs. In addition, more private investment is required to reduce inequality.   The State must promote the provision of public services and, in particular, the supply of infrastructure; that is, to have a better spending capacity, which exists in a limited way in the public administration. So, inequality, and in particular income inequality, does not come from market economy but from the lack of ability and corruption within the State, which does not invest efficiently in health, education, infrastructure and other matters that are necessary to reduce inequality.   We can not forget that a key element to fight against inequality is the reduction of informality, it being an important obstacle for economic growth, since the greater the informality, the lower the long-term growth.