Economic Public Policy in Chile’s 1980 Constitution
Economic Public Policy Under 1980 Charter
Economic Constitutional Law: Rules and principles impacting the state and individuals, shaping economic initiatives and citizen wealth. In Chile, Economic Public Order is central.
Juan Vicente Solá’s key elements of constitutional economic interpretation:
I. Economic theory of constitutionalism (qualified majorities).
II. Economy of constitutional design (separation of powers, electoral systems).
III. Specific constitutional doctrines (freedom of expression vs. dignity).
IV. Interpretation of provisions with economic logic (free market, expropriation).
V. Market protection mechanisms (balanced budget, public debt control).
VI. Dualism (personal vs. economic freedoms).
VII. Constitutional interpretation and economic development (freedom, regulation).
VIII. Judicial use of economic analysis in interpretation.
The Constitution organizes political competition, provides public goods, standards, political competition, and protects private goods and autonomy through contracts.
PEO Relationship and CPR
Range with Constitutional OPE: CPR elevates OPE to a constitutional level, specifying individual and state content.
Initial Stages of Economic Constitutionalism: Classical constitutionalism viewed the economy as governed by natural laws, separate from authority.
Bassols argues this ignores the economic function within constitutionalism beyond structuring political processes.
Stages in the Evolution of Economic Constitutionalism:
a. Implicit liberal constitutionalism.
b. Inter-war economic constitutionalism (Soviet-Marxist, Weimar, Fascist).
c. Economic review in classical democracies (New Deal).
d. Post-World War II trends.
Menendez and Duke define the Economic Constitution (EC) as rules establishing legitimacy, content, limitations, responsibility, and state intervention instruments.
The Freiburg School sees EC as a framework of principles implemented by government policy.
Arguments for Constitutionalizing Economic Bases
Role of a CPR: Understanding the Constitution’s economic basis involves:
a) Defining state powers for regulation or planning.
b) Defining the state-individual relationship in the economy.
c) Defining constitutional guarantees for economic activities.
The economic order is integral to the constitutional political agenda.
Public Order System and Economic Model:
- Defining the bases of the economic system.
- Adopting economic models.
- Formulating economic policies.
CPR focuses on the first level, basic definitions.
Economic models and policies are transitory and lack constitutional permanence.
Economic systems organize production and distribution.
Foundations of the Economic System:
a) State regulatory and intervention powers.
b) State as employer and its relationship with individuals.
c) Citizen’s financial guarantees.
Option on Economic CPR: Allows various economic models within a broad freedom framework.
PEO Concept and Content: Cea Egaña defines it as legal principles organizing the economy and empowering regulation.
Cea (1991) stated PEO’s purpose is to institutionalize free enterprise, equal opportunities, private property, and subsidiarity within a regulated market.
Aviles Hernandez criticized Cea’s focus on regulatory aspects, excluding liberal systems.
Hurtado Contreras limited PEO to governmental measures.
Sandoval Lopez emphasized PEO’s role in ensuring compliance with economic rules.
Sergio Diez Urzúa defines PEO as general rules governing economic rights, state activity, and economic relations.
Current Contents of PEO
Civil and Public Policy Goals of Classical OPE: Limit individual will autonomy.
Pyramid OPE and Regulations: Based on constitutional supremacy (Article 6).
Economic standards must comply with the Constitution.
The 1980 Charter prioritizes individual supremacy over state regulation.
Herrera’s Definition of Low OPE CPR: Economic order based on enduring values in the CPR.
Elements of PEO:
- Suitable relationship type
- Financial items
- Constitutional guarantees
- State subsidiary
- Person’s completion
Chilean OPE Contents
Principles:
- Primacy of Man and Social Autonomy: Man’s primacy over the state.
- Subsidiarity Principle: Individuals should handle what they can.
- Equality and Non-Arbitrary Discrimination
- Private Property
- Economic Judicial Review: Ensuring conformity with constitutional guarantees.
- Legal Reserve of Economic Adjustment: Legislature regulates economic activity.
- Independent Monetary Policy and Fiscal Discipline