The Role Of The State In Economic Affairs

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The role of the State in Economic Affairs

While there are different positions on what is the optimal role of the State in economic matters, but the State should participate to maintain healthy public finances.

Let us think about a fundamental issue for our historical time and for the economy the role of the State, the State is a collective construction in a democratic society in the only one we believe, people choose leaders, politicians validate their demands, laws and those laws and those laws and those laws and those laws and those laws and those laws and those laws and those laws and those laws and those laws and those lawsThey build institutions, there are chosen political leaders, there is a balance of powers, executive, judicial, legislative power. And there is a permanent exchange between the State and citizenship, there is a state management. The State is a representative of the collective will, but nevertheless a series of myths on this issue have been disseminated with great ease and have completely dominate the attitude of citizens for long years in front of the State.

It has been achieved by the dissemination of neoliberal ideas and the enormous permanent questioning of the State, some cases with real bases and in many other biased cases (it does not tell the complete truth), ideologically biased. A prejudice a trial prior to any judgment that is already taken before observing the facts or realities, a kind of ogre that consumes the productive forces says the neoliberals that consume society have been transformed into the State, the State has been Qualifying position in Latin America in the 90s and 80s when they had the absolute control of the economy, they called the obese, energetic, invader state and developed a vision that is that the best thing for all people, is the State minimum or an almost non -existent state that is concentrated only in the police, judicial function and that has nothing to do with all the other areas and almost by discarding that has meant approve the idea that the market solved all the problems, which would give it Employment for all and that the more the State is eliminated in the market path, the better it would be the development of the economy, it sounds good, what happens that there is something called reality, and reality D It is the one that determines that it is true and that it is true to us, it does not matter what a political party or other political party says does not matter what a leader says as a demagogic, no matter what an economist says of the city, What matters is reality, and the reality validated one or another version of reality and reality not validated this series of damages about the State, all these stereotypes about the State were destroyed by reality, in the countries where the ideas that the free market alone was going to be. In those countries nothing of this achievement function as it was supposed to work, such as Brazil as a military dictatorship and some neoliberal regimes that followed and in Chile during Pinochet and for some neoliberal regimes, bone the total retirement of the State in the economy in the economy was achieved , the force of convincing a large part of the population that this was the way and of permanently surprising it with laws and decrees that had not been endorsed mostly by public opinion in any way or consulted and that they were dark and the market with little State was achieved, Latin America had before the neoliberal models and dictators world in general, where this was applied in a third type of social economic model that is a place where the State has great weight, a place where the free market is doming Inant, a third thing is transformed into a place where monopolies and oligopolies in the market are dominant and there is no one to endorse them because the State is reduced to minimum states, then monopolies and oligopolies take advantage of the fact that a few companies control In each of the areas of the economy the main mechanisms of production and marketing, to challenge their law on the economy.

A world where the economy is globalized and a thousand companies control more than half of the entire stock market of the bone planet are the owners of half of all the companies on the planet have an economic power that allows them to set the law if they have no regulation.

The issue of the State is also said that it is often assimilated to that of a family, it is said if families must save and families must be austere and the State must be the same the State must save and then it does not have to have a deficit, it is Badly that families have a deficit, it is wrong that the State has a deficit, this is a total deception is to believe that people do not understand anything, the family is not the same as the State. In Peru we have 31 million people it is not the same to try to manage for 31 million people, to manage as a father or mother of a family. Sometimes what is virtuous at the level of a family can be totally perverse at the state level, when families save the State too State, now the only form of state, is the corrupt state that is one of the myths or inefficient state that is another myths or the State is always by definition for orthodox economists, it is inefficient and corrupt. And that such Norway, for example: the state of Norway is the main actor of the economy, more than 60 % of what people earn are collected, they charge in taxes and that the efficiency of the State is such, it is undoubtedly maximum has been The Punta Economic Actor that has allowed that country next to the oil tanker who has the best oil management on the entire planet through the public company “Esquinor“ has at the same time allowed a series of technological industries of Punta, where The State opened the way to the private company is a mixed economy and complemented. And that such a Swedish state or the Finnish state are all states of the highest efficiency provided by citizens services of the highest permanent quality and that they have completely corruption doses then it means that the State can be different.

It may have been efficient and there may be within the State areas of high efficiency, areas of medium efficiency and areas of low efficiency and it is necessary to do is not throw in the towel, but what you have to do is reform the State permanently so that the entire Status is efficient, that means things how to create a stable administrative career, a totally technical professional civil service where only political fingering in clientelism is advanced by merit. This professional civil service was the economic development base of England, France, Belgium and Holland and it is totally viable to build it in Latin America.

The efficient state means that it is committed to the majority of the population not with a sector interest then work its leadership always thinking about the majority and then when a bill is presented to Congress or a decree is issued is good or not good for The majority, the State may be different from how neoliberals paint it, bone states is not inefficiency and corruption by definition there may be a state that, like Nordics or some of the Europeans, reach high levels of efficiency such transparency and that it is under control of The opinion permanently publishes that is why it must be done permanently that it is called the State’s reforms, but what kind of state reform, one was the reform that Menem made that made the military dictatorships and that made it again and again that it was to convert the State in the minimum state.

The land is full of myths and they are suggested that they do not buy the idea that the market only solves everything because the market is not the perfect competition, the market is the monopolies and oligopolies that dictate the laws and dictate the prices of the products and try to make prices as the most possible to profit economically, in the collective will doing things for all and that in a process of transparency public opinion surveillance of public opinion to encourage public officials, all states can leave in the direction of Nordic or bone Canadian states have reforms, but permanent reforms in favor of people.  

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