Economic growth, development and institutions: The challenge of independence of the judiciary
A study on the independence of the judiciary level leads us to investigate the relationship between the degree of this independence and the level of economic growth or development. New Zealand tops In the study by the World Economic Forum (Ref 1), New Zealand is listed first, while Venezuela, following the chaotic and disparate political, social and institutional system, is in last place. New Zealand tops the ranking with a score of 6.7, Finland and Ireland, with 6.6 and 6.4; and Hong Kong and Norway, with 6.3
A study on the independence of the judiciary level leads us to investigate the relationship between the degree of this independence and the level of economic growth or development. New Zealand tops In the study by the World Economic Forum (Ref 1), New Zealand is listed first, while Venezuela, following the chaotic and disparate political, social and institutional system, is in last place. New Zealand tops the ranking with a score of 6.7, Finland and Ireland, with 6.6 and 6.4; and Hong Kong and Norway, with 6.3
Source: (1) The 10 countries with the law ....
The picture in Latin America, very different but not surprised by the location of Chile in the No. 25 position, while Peru is ranked No. 126. Among the former include Chile (27th), Costa Rica (37th) and Brazil (55) the average is between 5.3 and 3.9. Among the latter, Peru (126 º), Argentina (132 º) and Paraguay (146 º), with less than 2.5.
The Global Competitiveness Report 2013-2014, which makes the World Economic Forum, headquartered in Geneva, including a ranking of judicial independence. It is based on a survey that asks how judges are autonomous from the influences of government and business. In the index, 1 means that are heavily influenced, and 7, which are entirely independent (Ref. 1
Source: (1) The 10 countries with the law ....
Autonomy or dependency court system also depends heavily on how judges are selected. For Carlos Gregorio (Ref 1), "Mechanisms of choice exam scores and public hearings ensure a more independent judiciary. Designation If passed by the Supreme Court no less independence"
This is perhaps one of the most critical problems in countries like Peru, where the judicial system is taken over by those who do not meet the professional and personal requirements, being able to verify that there is an inverse relationship between the ability to hold high judicial office and powers professionals (legal knowledge, expertise, doctrine) and personal (honesty, self-confidence, integrity, simplicity, personality); why independence is a remote and increasingly unaffordable option, then no wonder the place in the ranking (126th). In Chile, renowned jurists and proven professional skills, not only lawyers, judges greater powers are.
Transparency is also an important factor. When all decisions and judicial proceedings are accessible to anyone, it is easier to check whether a judge ruled pressure or collusion with any party. The control you can exert the press, free and independent is important.
If you check the location of developed European countries and Latin America (considering the honorable exceptions such as Chile and Uruguay), the question arises why not exist or degrades and loses the independence of the judiciary? The absence of mechanisms that allow or require accountability of judges. Thus it is very difficult to determine when one is negligent or corrupt and, if discovering it, move it.
If there is corruption, the corrupt judge corrupt others to maintain their position, creating a web of corruption and favoritism in which everyone defend and hide behind each other. It actually makes a perverse aphorism, "Today you protect me and cover it up, tomorrow will protect and hide from"
Returning to the subject of economic growth and development What means the level of independence of the judiciary? First, the ability of defense of arbitrary government and other public bodies, the degree of confidence in the legal system, transparency and consequently reducing costs in contracts and other agreements that are made between nationals and foreigners. This association of realities in turn has a direct impact on growth and less noticeable or obvious in a first partnership on the development way.
When there is trust, legal stability, the business is going better, the contracts are fulfilled and paradoxically less recourse to justice and that there are fewer conflicts, defaults, risks, it has less involvement in problem solving, which hand are less harmful and reduced in quantity. Economic growth is a result, and if you add the existence of situations of prosperity, increased trade and production, increase productivity, increase development options.
In some circumstances it is understood as the existence of legal stability will legal conditions that favor certain parties to a contract, in an investment project; but not our vision that corresponds to a general confidence and security for all citizens, regardless of the type of activity or the magnitude of it.
Justice, legal stability only for those who can afford it is part of the corruption and therefore is not valued as an important objective.
When there is independence of the judiciary, and the ability and integrity of its members, corruption, a major cost overruns is reduced, that increases the return on investment, stimulate entrepreneurship, involving more economic agents production processes. Corruption is controlled not only by the greater social confidence but because in these circumstances, in addition to the autonomy you can expect a stern, impartial judiciary laws that apply to them accordingly.
Moreover, growth is the necessary condition for the development as it creates or allows to obtain the necessary resources to perform actions involving the development, such as the existence and functioning of a good educational system or health.
Our thesis is this: The more independent the judicial system with the benefits mentioned above (trust, lower transaction costs, security, increased performance, investments), economic growth is the natural response to this situation; moreover a more healthy and authentic (not spurious, based on an independent juridicial system), growth development will also realizable as resources are used wisely, transparency and a long-term vision. In the absence of systematic, institutional corruption and organized (as exists in countries that rank lowest in the ranking from position 100), the development resources are used efficiently and objectives are achieved, for example, provide the country of a quality education system.
There is a situation that will be the subject of a full investigation to which I call "trap of judicial office" regarding development, in which low levels of independence even if economic growth (which may it be as a consequence of favorable external events, such as the boom in commodity exports), the level of development is stalled; slight increases with increasing independence and economic growth are observed; From a critical point, turning point, clear and permanent independence of the judiciary is associated with increased growth and this in turn with a level of development with increasing intensity.
To overcome the "dependency trap the judicial system" and society has evolved so much that there is a direct normal relationship between perceived independence and development. In the graph illustrate this thesis. In Pc, critical point, point the level of independence of the judicial system is so high that the conditions for growth and development are given so that if growth stalled for various reasons, the development may be delayed, halted or decrease but would not return to the lower levels that are associated with undeveloped society. We have created the foundations of a society prepared for the good and bad times
Although this discussion focuses on the judicial system, in fact, all political, legal or any other type whose existence and actions have an impact on growth, and through the development of this applies.
References
http://www.infobae.com/2014/06/21/1574793-los-10-paises-la-justicia-mas-independiente-del-mundo
