The 1993 Constitution: The limit to state intervention in the Peruvian economy

Abstract

The 1993 Constitution: the limit to state intervention. This article examines the role and limitations of state intervention in the Peruvian economy under the 1993 Constitution. The paper focuses on how this Constitution has delineated state participation in the economy, in contrast to the 1979 Constitution, emphasizing the principles of free competition and market freedom. An analytical approach is used to examine both theory and practical cases of state intervention, including price control and intervention in basic services. A review of state actions during the COVID-19 pandemic is a crucial aspect of the paper, highlighting the challenges faced in implementing draft legislation. The conclusions indicate that the 1993 Constitution establishes a balance between a free market and a certain degree of state intervention, necessary in specific situations to guarantee social and economic welfare. The importance of adhering to the Constitution in the formulation of economic policies, respecting the limits established for state intervention for economic welfare in the Peruvian economy, is highlighted.