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FILSAFAT KORUPSI - Direktori File UPI

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president would have to expose the possible costs inherent to economic and financial policies,<br />

and identify winners and losers. Not only it would reduce informational asymmetries, but it<br />

would also increase transparency, as groups benefiting directly from reforms would have to<br />

demonstrate how those benefits would be to the advantage of society as a whole. The<br />

distributive analysis would also represent a social compact, in which the government would<br />

present an assessment of efficiencies created by reforms, its costs, benefits, and possible<br />

compensations for damaged groups. Misleading distributive analysis would also invite scrutiny<br />

Page 30<br />

in the future, creating checks on governmental activities based on forward-looking assessments<br />

revealing possibly hidden winners and losers.<br />

Another benefit of such mechanism would be to slowdown the process of economic<br />

reforms. Many recent economic analyses demonstrated that there is an inner virtue on gradual<br />

reforms. Not only they are more democratic, giving dissenting groups an opportunity to present<br />

alternative policies, but they are also more prone to generate sustainable economic growth, once<br />

such policies are usually based on broader social compacts. 60).<br />

Economic policies implemented based on thin popular support might lead to reversals, creating many<br />

unnecessary costs for poor<br />

countries with very limited resources.<br />

Requiring distributive analysis might also be beneficial by itself. Some governments<br />

possibly already apply distributive analyses to most of their policies. However, it is more likely<br />

that most incumbents simply do not request comprehensive distributive analyses while<br />

evaluating economic policies. As discussed above, the outcome of implementing economic<br />

reforms without due regard for their distributive consequences could be very unpleasant.<br />

Requiring such analyses might lead governments to reformulate their policies, even before<br />

making them public, leading to sounder police making.<br />

Another important element of this proposal is the creation of a Council of Social and<br />

Economic Development with constitutional status. The main objective of the Council is to<br />

require the government to engage in a public dialogue with representatives of civil society,<br />

creating an opportunity for disfranchised groups to negotiate possible compensatory policies<br />

with representatives of the government. To achieve this objective, the Council should be<br />

60). Dani Rodrik, NEW GLOBAL ECONOMY AND DEVELOPING COUNTRIES 89-95 (Johns Hopkins University<br />

Press,1999).<br />

Page 31<br />

compounded by an equal number of representatives of government and civil society.61).<br />

As mentioned, the Council would not have the authority to modify or veto proposed bills and<br />

decrees. It should be responsible for making sure that distributive analyses for such projects are<br />

sensible. This process would also have the benefit of increasing publicity over such assessments,<br />

including public hearings. This structure should increase transparency in the process of<br />

economic reforms, reducing the perception of corruption. It might also reduce the ―delegative‖<br />

character of Latin American political systems, requiring presidents to engage in a continuous<br />

dialogue with civil society at large, and not only the elites.<br />

This program is not only a program for institutional reform. It is also a program for the<br />

direction of Latin American legal scholarship. The distributive impact of economic and financial<br />

reforms in the region has not occupied the research agenda of Latin American legal scholars with<br />

the required intensity. Considering that the region has the highest levels of income inequality in<br />

the world, and also considering how economic distribution is relevant for political stability and<br />

institutional legitimization, such concern should be central, at least for every scholar dedicated to<br />

constitutional aspects of economic and social policies. 61).<br />

204

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