Constitutional economics

Constitutional economics is a program of joint study of economics and constitutionalism and is often described as " economic analysis of constitutional law ."

She tries to explain the choice of constitutional rules, which are intended for a " reduced choice and the activities of the economic and political institutions ." This differs from the approach of traditional economics.

It also examines how well match the economic decisions of the state with the existing constitutional economic rights of its citizens.

An appropriate distribution of economic and financial resources of the state is a big problem for every nation. Here to help you find a legal mechanism for resolving the constitutional economics.

Genesis of the term

The concept of " constitutional economics " (in today's Germany, as " New Political Economy " better known ) was founded in 1982 by the American economist Richard McKenzie. Later it was used by another American economist - used as the name of a new academic sub-discipline - James M. Buchanan. It was the work of this sub- discipline that Buchanan Nobel Prize ( for economics ) earned in 1986 for his " development of the contractual and constitutional bases for the theory of economic and political decision-making ".

Buchanan rejects any organic conception of the state as " the superior in the wisdom of the citizens of this state" from. This philosophical position is the basis of Constitutional Economics. Buchanan believes that every constitution is made for several generations of citizens. It must therefore be able to bring the interest of the state, society and each citizen into balance.

There is an important opinion by Ludwig Van den Hauwe that constitutional economics can be regarded as the modern " science of legislation".

The ever-increasing public interest in constitutional economics has led to the creation of several scientific journals, such as " Constitutional Political Economy " (founded in 1990).

Judicial interpretation

The American Judge Richard Posner emphasizes the important role of the state constitution in economic development. He claims that "effective protection of basic economic rights can promote economic growth. "

The Supreme Court of India has used in several cases a practical interpretation of the Indian Constitution to the public interest to protect the poorest and most oppressed populations. This is a good example of the practical application of the methodology of constitutional economics.

Importance for transition and developing countries

In the English language refers to the word "constitution" in addition to meaning "Basic Law " often to the set of basic principles that govern a commercial, religious or public organization. This broader understanding is characteristic of the western school of constitutional economics. Deviating from the Russian school of constitutional economics, which was developed at the turn of the millennium concentrated exclusively on the concept of the state constitution. The Russian model of constitutional economics tries to bring together the constitutional economic rights of citizens and the economic policy of the state. In 2006, the Russian Academy of Sciences has officially recognized constitutional economics as a separate academic sub- discipline.

Adequate distribution of the national wealth is the main subject of the constitutional economics. Many countries with rebuilding or developing economies treat their constitutions only as an abstract legal documents that may have nothing to do with the actual economic policy of the state. Three quarters of all independent states are still living under almost absolute state control of the economy. Neither civil society nor individual citizens in these countries have influence on decisions about the distribution of the national wealth. Therefore, constitutional economics is particularly important for countries whose political and economic systems are in transition and in which the state (if at all ) respects rarely the constitutional economic rights of citizens.

Credentials

• Philosophy of Law
• Constitution
• Economy