The rule of law and its relevance for the economic revival

December 27, 2019
The economic recovery can be understood as the process by which it seeks to steer the economy of a particular country after being submerged in a crisis that affects the general population. A clear example of this type of crisis is the situation in which Bolivia has been going through since the election on the 20th of October of this year. Now, the rule of Law or Rule of Law to the societies anglo-saxon can be seen as one stage in a society in which all actors, including the government, businesses and civil society in general are equivalently accountable to laws that are clear, fair and predictable. To achieve this, it is imperative to the existence of an institutional and regulatory framework founded on foundations solids to ensure proper application through institutions, impartial, and accessible. In this way, the rule of Law necessarily requires the existence of rules well developed, with advertising, and applied uniformly to all members of a society. Similarly, decisions that take it as the effect of the application of these laws need to be enforced effectively. This provides certainty and creates legal certainty, as to any person, both in its relations with the State as their relationship with other people, you know what to expect. This clearly removes any kind of arbitrariness and seeks to consolidate a system that is able to predict the consequences in the field of social and economic actions of individuals and the public authorities, and the decisions of the judicial system and public servants, thereby contributing positively to the social peace and economic progress.
With respect to the business, this has as its essence the search for legitimate economic performance and enabling sustainable in time, therefore, this activity is inconsistent with the uncertainty caused by the legal structures poorly defined and the insecurity caused states of emergency or uncertainty as to the current situation in bolivia, where the legislation fails to meet a legal situations or contingencies that arise in commercial transactions. For this reason, there is no doubt that the economic development of a society is directly dependent on its legal system. As I mention the former secretary of the United Nations Ban Ki-Moon “the rule of Law is crucial to promote sustainable development, human rights, and equal access to justice. When the rule of Law is strong, people and companies can feel safe and invest in the future.” In summary, the rule of Law is a key factor for the economic revival of Bolivia, this is firmly united with the trust, and without the latter there can be investment or economic development. The lack of a rule of Law promotes the legal uncertainty, which is one of the biggest concerns of any investor, especially foreigners, because a country without a clear regulation is considered an investment risky. Investors seeking the safety that it offers a legal framework that is transparent and ensures the rights of individuals. Therefore, the best way to revive the bolivian economy is through a regulatory change that is holistic. You must generate a regulatory system based on the clarity, advertising, predictability, and stability required for economic development. The public authorities must ensure a transparent structure that eliminates the arbitrariness as a form of exercise. There is nothing more harmful to the legal certainty that the possibility, and even the simple idea that the public administration to exercise its authority and powers of arbitrary shape and futile. Finally, companies must also contribute to the safety that demand a State of Law, a contribution that should be the basis of the systems of corporate governance of the companies, to avoid major corporate scandals for the practice inadequate as is the case with Odebrecht in Brazil. It is in this sense that the practices of corporate governance business, which refer to the way in which they are taken to the decisions of the companies, the participation of corporate and/or equity, and the responsibility of their managers, are an essential pillar to engage in the trust, protect investors and revive the national economy.